Maximum Retail Price. Is the consumer at a disadvantage?When we shop for the multitude of things for our day to day life, comfort or luxury, almost all the items carry a MRP - Maximum Retail Price. Sometimes the MRP prices are obviously high and there are variable levels of discounts offered depending on the article, place, the customer and the seller. I have come across day to day items that are at 50% off (not expired/not damaged) in one shop and two doors across the item is at MRP only.
So, it looks like the producer or manufacturer has already built in a wide margin of profit, the profit for the producer, wholesale dealer and the retail seller. It's obvious that MRP can be adjusted to the needs of these three and NOT in favour of the consumer. And on top, the consumer pays the GST too. At times the MRP is 100-500% higher than the actual cost of producing an article (for instance branded clothes). So for me higher the MRP + profit margin, higher is the tax that we have to pay. Why should we pay tax on the built in profit for somebody else.
Are there any guidelines to monitor MRP or is it time for the government to cap the price of a particular article in a particular category or is it time to find a new system?