Traders issue ultimatum over sales profit margin

An association of businessmen, traders and merchants have threatened to stop the display of products of major international and national companies unless they agreed to increase their profit margin on sales to at least 10 per cent.

Salim Parvez Butt, who heads the Karyana Merchant Association, said that those running grocery stores, general stores, mom-and-pop outlets and other such small businesses were making a profit of barely Rs1 or Rs2 on the sale of essential items for daily use.

Butt said that the companies had been notified of their demand that each supply dealer should set a minimum profit of 10 per cent for the seller on products sold in packets, sachets or any other form of packaging to the customers.

They have given them till July 31 to comply with their demand. In case of failure, the association said they would not sell those products at their grocery stores across Rawalpindi. These products include tea bags, bread, ghee, oil, laundry detergent, soap, formula milk, household cleaning supplies, milk, yogurt packets, juices, jars and other types of sachets of various items.

Butt added that the companies in question had raised prices of their products substantially over the last year and a half. Many companies have reduced the weight of the products in the packets as well, he continued.

“But the shopkeeper barely makes one to two rupees each day on these products,” he said. “We no longer accept it when companies continue to cut vendors' profits.”

Published in The Express Tribune, July 26^th, 2023.