why do you think Super Stores like Big Bazaar and more sell the same goods at a relatively lower price
please Answer the question it's important
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A Super/Hyper market is like any other business, hence all the key financial principles apply to them too. But to enlighten you on two of the financial levers which these businesses target,
1. Rupee Gross Margin (RGM) This means
the net margin made in selling a particular product in rupee terms and not in percentage.
Margin percentage X Number of pieces sold
The objective is to maximise this at any given point of time. Maximising this could mean dropping either one of the factorials, as required, leading to a large upswing in the other factorial.
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