Reducing the competitive power of chain stores by limiting the scope of profit
According to the Islamic Republic of Iran Broadcasting news agency, Mansour Aalipour, participating in the “Zanjireh” radio program, referring to the development of cities and the urban lifestyle and their expansion and the establishment of chain stores in the world since two centuries ago, said: this style of shopping is affordable for people. It is cost-effective and governments can make their plans for supply of goods and supervision and other things that happen in businesses and the government’s income are very transparent.
He added: Being a chain means that the industries that operate with a brand name and a centralized system form a supply and distribution chain of goods.
Aalipour said: Today’s world is a competitive world, and all manufacturers are seeking to attract more customers and a higher market share in addition to higher quality production, and in this competition, it is the customer who gets the most profit, and experience has shown that stores that operate as a chain are more successful due to their high power of maneuvering the quantity, quality and price of goods.
The head of the National Union of Chain Stores added: In our country, with the new methods and guidelines set in the pricing under the name of production price and consumer price, product competition has disappeared to some extent, because the stores are obliged to buy the goods at the same price as the producer and to sell at the consumer price and this problem has reduced the power of competition between these stores.
The method that is currently implemented as the insertion of the production price, certain profit coefficients are specified for all goods, and it does not matter whether it is a chain store or a product, they must buy this product and apply the minimum coefficient and profit of the product on the production price and the consumer price with paying attention to the specified instructions to sell.
Mr. Alipour stated that the costs in chain stores are higher than retail units due to systematic and miscellaneous charges, and said: the new guidelines will destroy the competition between these stores due to higher costs and reduced ability to offer discounts to customers.
He added: Some manufacturing companies are willing to offer more discounts to stores in order to capture the market and attract more customers, but the consumer and producer protection organization has deprived them of this possibility with a new directive.
The head of the National Union of Chain Stores added: “We don’t have an order in the new pricing method, but the producer, by including the production and consumer prices on the product, has practically set a limit for the seller, and the seller is responsible for taking action within the same set range (10 or 12 percent profit).
Mr. Alipour stated that the method of distributing goods in the form of chain stores is one of the important tools of the government to fully monitor and supervise the supply, distribution and sale of goods, and said: In the new system and the connection of many companies to the comprehensive trade system of the Ministry of Industry, Mine and Trade, All the goods that are bought in chain stores are registered in the system and they can transparently monitor the supply and demand. Naturally, this type of buying and selling is a factor that can easily control the market and distribute goods, even the goods that are produced far away, by signing a contract with a chain store, bring and distribute them in the supply chain network.
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