InternationalInternational Economics

Double the price of goods from the factory to the market / insert the producer price to control inflation


Mohammad Sadegh Mofteh, in an interview with Fars News Agency’s economic correspondent, said about the “transparent purchase scan” and the “insert producer price” project: The buyer, instead of the consumer price, manages the same issue.

He said that one of the problems of the distribution system is the swelling of the distribution and sales circle and added: “After production, goods go through two important parts of distribution and sale. Distribution companies have the issue of distribution on the agenda and sales of goods are done by different stores.” It becomes.

* The challenge of rational distribution and sales costs after the production of goods

He reminded that the rationality of distribution and sales costs as two important parts after the production of goods has always been a challenge, he said: About 15 years ago (2006), the former Ministry of Commerce conducted a study in this area to examine the share of the two parts of factory door price and final consumer price. In that year, it was found that the final consumer price was twice the average price. Manufacturer (factory door).

Final price increase; Simultaneous abuse to producer and consumer

Referring to the results of that study, Deputy Minister of Commerce Samat said: “That is, the price of the factory door and the final price of the producer reached the final consumer by doubling on average, which was a great injustice to the final consumer (people).” .

Mofteh also considered this issue as a kind of abuse to the real producer and explained: when the final price of a product goes up, naturally the demand for buying that product from the producer also goes down, which is also a kind of abuse to the producer’s rights, therefore no Producers are not advocates of price increases.

Excessive distribution costs are one of the reasons for the unreasonable growth of stores

He said that now this final consumer price (from the factory door to the arrival of goods to the people) has certainly increased, he said: this additional cost is paid by the final consumer (people) and one of the reasons for the uncontrolled growth of various stores They have also relied on the same profit (exorbitant distribution costs).

The Deputy Minister of Commerce for Silence Affairs also considered the distribution of goods in the country as uneconomic and said: “It is customary for each factory to have a distribution company that delivers its products separately to the doors of stores, and this causes additional costs to the consumer.” The final be imposed.

Mufti also complained about the complexity and creation of multiple layers of wholesale and retail, adding: “This multiplicity in the distribution and sales layer has caused the end consumer’s costs to rise and their rights to be violated.”

* Insert producer price to manage costs

“Expensiveness and overselling are two different natures,” he said. “It’s easy to fight overselling, processes that impose additional costs on the end consumer. The producer manages the same issue instead of the consumer price.

* Change in pricing culture with the producer price insert project

Deputy Minister of Silence for Commerce, stating that a kind of pricing culture (consumer) has been wrongly populated, said: For example, the price of mineral water is the same in all geographical areas, while the factory should take into account the distance to the consumer Ultimately, apply the cost so as not to be harmed, which is not the case. Therefore, a change had to be made in this area, and the project of entering the producer price was implemented in this direction.

Mofteh said that competition in the field of distribution and sales should be formed, adding that the biggest measure to protect consumer rights was to reduce costs after the factory door, which is achieved with this project and by creating competition in the distribution and sales circles The consumer is well respected.

* Competition between distribution units is to the benefit of the consumer

He added: “Creating price multiplication is one of the positive features of this project, which gives the buyer the power to choose and creates competition between distribution units, which will ultimately benefit the end consumer (people).”

* Factory door price is the tax base

Deputy Minister of Commerce for Silence on how to determine the producer price, said: The calculations of the Consumers and Producers Protection Organization and the tax collected from the factory are the main bases and indicators for calculating this price and with the agreements made with the Tax Affairs Organization. The price of the factory door is the tax base, which is a very accurate self-control system.

* Manufacturers welcome the inclusion of the producer price

Referring to the various meetings he has had with producers in various fields, Mofteh continued: “Manufacturers have welcomed this plan, and well-known distribution companies also strongly agree with the plan to expand their work. By implementing this plan.” The seductive discounts of the stores will also disappear and the goods will reach the final consumer (buyer) at a real price. Also, the places where this plan is implemented will be welcomed by the people, all the goods will be included in this plan over time according to the schedule.

“People should consider two criteria for buying,” he said. “People should not pay more than 20 percent for distribution to buy consumer goods such as milk, mineral water, etc.” In capital goods such as televisions, refrigerators, etc., the maximum cost of the distribution network to reach the final consumer is 30%.

The producer price does not mean the final sale price to the buyer

He considered one of the tasks of the final sellers in this plan to insert the consumer price on the shelves of goods and said: the producer price does not mean the final sale price to the buyer and the sellers considering the numbers 20 and 30% (for consumer and capital goods) The final consumer price is displayed on the shelf.

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