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Old 01-20-2012, 02:13 AM   #1 (permalink)
Nonu Solanki
 
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Default There's a difference in price between cities of the same State. Why?

There's a bit of confusion I'm facing.

When I decided to buy a new bike, its price in my city was quoted as 1.25lacs. Around 128kms away is another city where the price is quoted as 1.20lacs. An exact 5k difference. When I asked about the price in another city about 300km up north, it was 1.23lacs.
I dont understand why. I always thought the price is the same within the State considering the road tax is decided by the State government,

Also note, there is only one dealer in my city, so rid myself of doubt I cant even cross-check within the city.
Upon asking the same to dealer, all he said was its because the tranporting charges are more for them.
Plus, the ex-showroom price across the nation was declared to be 1.07 lac but these guys are claiming it to be 1.09lacs.

Perplexed totally!
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Old 01-20-2012, 04:39 PM   #2 (permalink)
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Query approved.
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Old 01-21-2012, 07:22 AM   #3 (permalink)
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Talking

Yoohoo...Anybody home?...
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Old 01-21-2012, 05:37 PM   #4 (permalink)
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Nothing to get perplexed!!! Let me give you an example, just think over the facts.

Pondi's ex-showroom prices are way too less than Chennai's. Pondi to Chennai is hardly about 130-150 Kms.

Think over!!!
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Old 01-21-2012, 07:44 PM   #5 (permalink)
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Quote:
Originally Posted by aargee View Post
Nothing to get perplexed!!! Let me give you an example, just think over the facts.

Pondi's ex-showroom prices are way too less than Chennai's. Pondi to Chennai is hardly about 130-150 Kms.

Think over!!!
Lemme help you with the explanation to your example.
Pondi is a UT. Here the Centre decides everything.
Chennai is a part of a State. Here the State government decides the rules.
Get it?

Now back to my question. Lemme rephrase.
I live in Surat. Its 1.25l here. Baroda is 128km away,and its 1.20l there. Both are a part of Gujarat ruled by the State Government. Okay?
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Old 01-22-2012, 08:23 PM   #6 (permalink)
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Ever heard of the terms : Monopoly , Syndicate ?
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