As per the central government notification, now the excise duty will be paid on MRP rather than on the billing price. Given the heavy discounting in the market place, the scanty abatements provided by the government, will in effect make the products more expensive. How does one cope up with such a disadvantageous scenario?

PK Sharma, Connect Vision, New Delhi

Suresh Pansari: The street prices of the products are determined by the brand owners or the manufacturers. As resellers and distributors, we all support their decisions, with or without any value additions. The government notifications will have no impact on our profitability. Of-course, after this notification, the prevailing gap between the MRP and the street price will reduce.

Jagdeep Kapoor: First of all I must appreciate your name 'Connect Vision'. Now let me give you the 'correct' vision. There are many industries over the years, where this rule applies. You have to make your brand, come alive and 'connect' with consumers and make them see the value of your service, your brand, pre-sales, the sale, and post-sales education about the products and also make them see the value of the range that you offer. Then, your brand 'Connect Vision' will truly connect with consumers and develop a long term relationship with them. This will ensure that you make progress as a high perceived-value brand and service provider.