Answer / abhivirthi tax and industrial

India is an agriculture based country and maximum number of people came from villages or under-developed cities, semi-developed cities. The persons hailing from undeveloped cities seem to be very economical and they want to save money instead of lavish expenses. So before visiting a super market or a place where all things are available, for purchasing anything, they will enquire the rates of each and every commodity and if the rate of commodity is less when compared to that of other places, then only they will enter into the shop for purchases. Small dealers having very small place of business in a particular commodity concentrates the quality of the product as well as price and sells the same in their shop at very low margin. The small dealers are having much more experience in business in buying and selling even they were not educated in colleges. Their costumes are very simple and their shops were not provided fancy lightings and even they may not have staff for assistance in business. Hence their day-to-day expenses are very low and hence the very low margin earned by them will give more profit after deducting their minimum expenses.

Big corporate sectors like Subhiksha Retails, purchases goods in wholesale at a very low price and sells the same at a very low margin. But their shops are big in size with maximum lightings and educated staff strength. They were not flexible with the customers and the customers’ expectation of certain product’s quality was not fulfilled. Even though the corporate sectors try to give quality products to the customers, some customers may not be able to purchase such products. For example a poor housewife wants to purchase 100 grams of any kind of dhall or peas or any other product the same will not be available in Corporate sector shops because they will simply pack the goods in 250 grams, 500 Grams or 1 Kilo. In such cases the packing material’s cost increases i.e. minimum of Rs.0.40 per kilo (for Polythene cover). Such small customers entry into the corporate shops reduces which in turn reduces the sales turnover. In retail small shops such goods will be sold in loose without packing material cost and small shops will give price discount orally. If the Corporate Sectors who wants to sell retail consumer goods, they should reduce the administration expenses like space rent, electricity expenses, staff salary, publicity expenses, packing expenses etc and avoid free gifts, and they should concentrate only in quality and minimum price when compared to nearby shops. Customer’s satisfaction should be given top priority instead of human resources management. If these were followed each and every Corporate Sector Retail outlet will become everyone’s favourite and there will be no failure in trade or business.

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