lack of supervision of the home appliance market; Purchasing power is low and prices are high

It has been a few weeks since the issue of price increase in the home appliance market has been raised and the Consumer Protection Organization has promised to follow up on this issue and deal with the wrongdoers who have increased the price of their goods without the permission of this organization or the Ministry of Privacy. Of course, it seems that there has not yet been a meeting that will lead to the return of the goods to the previous price.

Now the latest news from the home appliance market indicates that the price of goods has increased by 60%. Mohammad Hossein Rahimithe second vice president of the Union of Home Appliances, to Tasnim has announced: “Many manufacturing factories have increased the price of their manufactured goods by about 60% under the pretext of increasing the price of steel, paint, etc.”

In the meantime, Akbar PazoukiIn an interview with Zomit, the head of the home appliance sellers’ union stated: “This price increase was only for Dose water coolers, which have increased by 60 to 65 percent.” According to him, today the price of a 7000 water cooler is about 10 million Tomans. The same cooler was the most expensive this summer at 6 million tomans.

Furthermore, Pazuki also said about the price increase in the home appliance market: “There has been a price increase of between 5 and 15 percent for home appliances and up to 20 percent in some brands.”

The head of the Home Appliance Dealers Association explains that although many people see price increases through the eyes of retailers, the reality is that manufacturers have increased their prices:

Pazuki adds:

Considering that the producers have not registered any license in the system, Pazuki concludes that the price increase was without the permission of the Ministry of Privacy or the Consumer Protection Organization.

What is the reason for the price increase?

The head of the Home Appliances Sellers Union also mentioned the reason for the manufacturers’ actions to increase the price of goods: “The manufacturer says that the steel sheet has become more expensive, they do not even give half currency, the price of raw materials has increased; So I also have to change the price of my goods.” Pazouki believes that the decision of producers to increase the price of their products is in line with the price increase in all markets of the country and especially the increase in the price of raw materials from the beginning of this year until today.

Pazuki says about this:

He considers “supervision” and “pricing” as two important tasks of the support organization and believes that by examining the production cost for the producer and comparing it with the final price of the products, one can conclude whether the price increase is necessary or not. He says that the support organization should investigate and answer this question: “If the producer is right that his costs have increased and the product should increase in price, why doesn’t the government give permission?” If the producer makes a mistake in his calculations; Therefore, the government should prevent the increase in the price of goods.”

Pazuki points to the role of pricing in this organization and explains:

Reducing purchasing power and switching to installment goods

The increase in the cost of living, the price of production raw materials, goods, the lack of increase in people’s salaries and income in proportion to the increase in the price of goods are among the problems that have plagued the market and not only the home appliance market. In such a situation, people cannot afford to buy goods and sellers cannot sell their goods, and as a result, the market stagnates.

The head of the Home Appliances Sellers Union had already announced that the sale of home appliances has decreased by 80% and now he says about the level of stagnation in this market: “Currently, we have an 80% stagnation in the sale of goods. On the one hand, with the increase in the price of raw materials, the price of household appliances has increased, and on the other hand, people’s rights have not increased in the last three to four months; Therefore, their purchasing power has decreased.”

Pazuki explains that the reduction in people’s purchasing power is such that it forces sellers to sell their goods with a 1-2% profit: “At the moment, when the government has set a 5% profit for Iranian wholesale goods, we sell the goods with a 1 or 2% profit. we sell Because people don’t have purchasing power.”

He considers the high prices and the decrease in people’s purchasing power as the reason why they turn to installment purchases and explains about this:

According to Pazuki, this has caused the sales of the business to be lower than before. Of course, he believes that buying in installments has disadvantages for the buyers themselves. He adds:

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