Thursday, January 1, 2009

Mineral Water Pricing

in past few days i have found that even local brands in Mineral water industry has increased the price, this is happened when the known brands like kinley, aquafina, bisleri particularly Catch has increased in MRP. i am totally confused on the pricing, whether they actually increased the prices or just doing penetration to be in market. one can be surprised the bottle 1 ltr., which was for Rs. 10/- now is minimum Rs. 12/- or Maximum Rs. 15/-.
surprisingly CATCH water although one can not get in retail market, but in hotel etc you can get it. earlier hotel, restrauant were selling CATCH used to charge Rs. 25/- to Rs. 30/- funny part was these CATCH bottles never ever crried MRP. (Excuse was it is available in Institutional Sales)
When Honourable Supreme Court passes the order, then this company started print MRP.
now my worry/concern is how a comapny can increase the price by 20 to 30% in one go, although customer has right to negotiate the rates but with whom and for what. in my opinion Govt. should also put a sealing on MRP.
please note the following points:
Cost of Production 20%
Cost of Excise 15% apox
Cost of Logistics 30%
Cost of profit to Mfg. 10%
Profit to Distributor/Dealer 10%
Profit to shopkeeper 15%
Loss to consumer Sub Std Quaility - Thrust + Loss to pocket