Every product launched in India must contain certain information about product. It includes MRP, Maximum retail price is highest price that can be charged for mentioned product. Retailer can charge any price below this MRP. MRTPC – Monopolies and Restrictive Trade Practices Commission also advocate for free and fair pricing. however Samsung do not allow this practice. They control pricing with SRP, and dictate retailers to sell its product only at this price.
SRP – Samsung Retail price is always lesser than MRP and only pricing available to bill at.
For example Samsung J1 4G SRP is 6890 and J2 ace price is 8490. No seller can bill a handset below this price.
If retailer want to sell below this price and Samsung threat retailer and stop billing. Even Samsung do not allow to offer this price to end user.
In order to control price, Samsung has created its own audit team also called Samsung police. Impersonating as consumer they negotiate very hard with retailer and ensure that retailer agree to offer at least Rs. 50 discount on handsets and as and when it is done, retailer is thrashed by Samsung and Retailers Samsung billing is blocked from 2 weeks to 1 month.
Samsung is creating nuisance and deal rough with retailer, however both are partner in taking Samsung where it is, but Samsung has no respect for their trade partner.
Samsung is losing its market share to VIVO and OPPO rapidly, while these too believe in pampering retailers Samsung is exhibiting arrogance. Samsung handsets are highly priced if VFM (Value for Money) is considere while at the same time Vivo and Oppo’s handsets are featured rich at much below price.