Saudi plan to expose retailers' mark-up rates

RETAIL PRICE: Saudi officials are mulling proposals that would tell shoppers how much retailers add to the prices of products when they sell them. (Getty Images)

Saudi officials are considering proposals that would reveal the mark-up that retailers in the kingdom put on their products for sale.

The Ministry of Commerce and Industry is studying a plan to announce the prices of commodities according to the value stated on the customs clearance card when they were brought into the country.

The initiative aims to tell consumers about the difference in the price of the product when it arrives and the profit added by retailers when it is sold in shops, the Saudi Gazette reported on Wednesday.

The experts committee at the Council of Ministers is also considering a plan to work out a uniform price index for food and consumer products, the paper added.

Prince Dr Mansour Bin Mit’eb Bin Abdul Aziz, deputy minister of Municipal and Rural Affairs, said the objective behind the index was to monitor prices of food and consumer products all over the kingdom.

The ministry has also set up a consultation office to study the impact of the rise in prices on merchants and consumers.

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READERS' COMMENTS

mark ups
Posted by dc qatar, Doha, Qatar on Monday 4 May 2009 at 17:16 UAE time


when I see all the luxury shops in the Middle East I recognise why 100% markups are needed, these are empty most of the time and need to make the occasional sale, just to pay the overheads!
Leave the poor dears alone otherwise you will have Soviet style shops and the same degree of choice

How about just mentioning the MRP
Posted by Bijoy, Riyadh, Saudi Arabia on Wednesday 7 January 2009 at 15:38 UAE time


IT indded is a commendable effort from the authorities. But it only gives the insight to the profit margins of the retailers. As consumers, are we at an upperhand to boycott products. Unfortunately, not yet in Saudi Arabia. There are Cartels of price-fixing everywhere.

To simplify and control the prices, why don't authorities just ask the manufacturers to mention the Maximum Retail Price (MRP) on the packages..This will prevent the retailers from charging more!

Not workable
Posted by Leo Soz, Dubai, UAE on Wednesday 7 January 2009 at 14:22 UAE time


This approach is totally anti-enterprise and pro-socialist, which will stifle retail innovation and channel dynamics. Value addition, which is a part of excellence, will be consigned to back burner and will promote mediocrity at various levels. In a growing economy, the market forces and competition should drive prices down. I would advocate price control mechanism in Government controlled monopolistic business and service sectors... such as Telecom Tariff, broadband tariff, airport levies, utilities etc. This would be a more sensible way to reach out to the consumer.

Retailers rates
Posted by Dave, Abu Dhabi, UAE on Wednesday 7 January 2009 at 12:53 UAE time


Great idea! (not) That'll immediately cause most of the distributors to stop bringing in niche items or alternative brands to the 'big' names and remove what little choice the consumer has now!!!
Instead, how about advising the consumer just how much the local partners are taking out of the company (on the back of someone else's hard work) by way of exorbitant rents, fancy cars, garish villas, profit shares, thrice yearly holiday expenses etc.

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