We are all consumed by the ever rising fuel prices and how the govt. taxes fuel excessively, and how it is all affecting our monthly budgets. But how much do you spend on fuel each month as a percentage of your monthly income? Less than 5%. How much on groceries? Much more than that, close to 25%. Of course, if you’re super rich, none of this matters. 🙂
We’re concerned how the govt. is taxing fuel at close to 40%. Do you know how much your friendly neighborhood “kirana wala” store is “taxing” your groceries? Bet you don’t. The “tax” I am talking about is the margin he earns (imposes?) on each item sold. It varies from 10% to as much as 50% with an average of 20%.
It is the same story with online portals who claim to save you money, but only end up being as expensive (sometimes more) than the neighborhood store.
I sell dry fruits and whole spices via my brand, Frubee. So I know this business intimately. I happen to know that you are paying a “tax” (margin) of between 25% and 50% (yes, you read that right, 50%) on your purchase of dry fruits and spices. The more you trust your friendly neighborhood store, the more he “taxes” you.
He’s adept at profiting off your desire for convenience and your trusting nature.
A grocery store owner is content with margins of between 5% and 10% on most of the brand-name products. So why should he charge extra on dry fruits and spices? It’s because he can and because you are willing to pay.
Dry fruits are considered as luxury items, so the brands in this space are willing to pay ever higher margins to feature on store shelves. The brand that gives the most margin is the brand that will feature on the shelves. And who pays for all that extra margin? You think the brand does? Nope. You do.
We feel dry fruits are an essential item (spices, of course, are). Just because they are purchased by a reasonably affluent consumer does not mean that the consumer should be gouged for all the money she has. Frubee always paid a reasonable margin of about 20% to the retailer (to offset the fact that dry fruits are slower-moving items than most other groceries).
As a new brand, it is a tight-rope walk for us to maintain competitive MRPs while doling out huge margins to retailers/grocery stores. The minute our brand started selling in reasonable numbers, our retailers started squeezing us for more margins, threatening to yank us from shelves if we didn’t pay up. It got to the point that our MRPs were under strain. The retailer doesn’t mind it. He only wants more margin, and more margin, and then some more until the customer feels the strain and reduces consumption.
Frubee was being asked to pay a margin of 50%! As much as a brand that starts with M and ends with A. (Figure it out. It’s ubiquitous. All stores keep it, as one would expect with 50% margins! We’re sure they’re in your kitchen shelves too.)
The only way to pay high retailer margins are the way this brand does it. Pack poor quality products and keep MRPs the same as higher quality products.
Frubee cannot and will not lower the quality of product to gain more sales, so we settled for lower sales.
The prices of dry fruits and spices could be far, far less than what they are right now if stores were willing to accept more reasonable margins.
Finally, we had enough and decided to do something about it. We decided to cut out the middleman and reach the consumer directly. To that end (upon using coupons) the prices on the Frubee website, www.frubee.in, are prices that you will find nowhere else on the market, online or offline. With coupons applied, Frubee.in offers the lowest prices on top quality dry fruits and spices anywhere in the market.
Find a lower price for dry fruits anywhere, send us evidence, and we’ll pay you double the difference in your choice of dry fruits. 🙂
Thank you for reading this far. As a gift, here’s your coupon to get 25% off site-wide right now. Use coupon code FLAT25. Go shop for the lowest prices now!
Stop paying extra at retail stores and portals and shop at www.Frubee.in. Your wallet will thank you.