Minimum Operating Price

Some traders association is demanding that like MRP there shud also be MOP as Minimum Operating Price under which no one is allowed to sell anything.

I think the traders are being short sighted because ecomm is eating their lunch.

What if a trader is shutting down their business and have to dispose stock at whatever rates. Why are traders being their own enemies?? more  

View all 16 comments Below 16 comments
MOP as Minimum Operating Price help them to reduce loss. It should not be more then manufacturing cost. more  
The market is competitive and the trader has been extracting the consumer. Ecommerce is also purchasing and selling, but at a minimum margin. The volume matters. more  
A writ petition in KERALAto fix Minimum Selling Price, was dismissed, afew years back. A report by the PARLI committee had also recommended such pricing. But the govt has not accepted this on the lobby by manufacturers and Traders more  
Min operating cost. .. . Does not cover the fixed cost.. And MOP will only cover the production cost.. . The seller at least cover his cost of products.. It will b loss.. . Fiat had done this to liquidate all their unsold cars..
Of course with loss.. Sales revenue- production is gross margin.. If both are equal.. Thst is MOP is equal to sale price nothing will b left to cover your fixed cost, admin overheads etc.. Net result loss only more  
eCommerce firms aim at monopolizing the trade and then dictate terms of the business. In this a healthy competition is lost. It may be worthwhile to find an amicable solution by trade offby the local dealers and traders. more  
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