Rediff.com |  Feedback  
You are here: » Rediff Home » Discussion Boards » Permalink
  
View : Single Message | Complete Thread | Read complete Discussion
Why shut reliance
by Parmod Sharma on Oct 08, 2007 10:46 PM

This is political issue.In Gr,noida where I live hardly 5% people may be visiting reliance for their daily needs.And these are the people who anyway did not buy from a local mandi.Earlier they were buying from mother dairy or other such shops which had shelves. So "poor sabziwala" customers are more or less intact.Secondly in competetive economy consumers are driven by price. People are buying from reliance since it sells cheap than the local subziwalas. Now if I am correct reliance is not manufacturing vegetables where they can have economy of scale and outpace smaller players. They are buying from farmers so does subziwala, so they are trading which is basically buy low sell high. And a farmer is not going to sell cheap because the buyer is Ambani, in fact he would try to get maximum from the BIG FISH. So after all this simple economics my question is, WHY CANT A SUBZIWALA COMPETE RELIANCE IN PRICE? LOOK, Reliance has a big staff,salesman,land,HR,Power bills,A/C,Upkeeping of showroom etc etc adding to their cost and ofcourse taxes of every kind since they sell organized.Now the local so called poor guy has no such COST and still he charges a few bucks more from us WHY? who is the real poor guy? Mandiwala or we the customer whom this govt & this lobby want to exploit to the maximm. Since the middleman lobby is united & they can cry louder hence govt think they can affect votes so rel is being shut so they can charge us whatever they want.let us decide where we want to buy.

    Forward  |  Report abuse
The above message is part of the Discussion Board:
Big retail's big blunders