MITDA sets 5 percent minimum margin for members

In an effort
to protect the minimum margin for members, Malabar IT Dealers
Association (MITDA) has taken a step to prevent all kinds of
unhealthy competition in the IT market of Kozhikode. To keep a check
on maintaining minimum margin in the region, the association has
formed a subcommittee named Margin Protection Force (MPF), that
conducts regular meetings with members and distributors.

This project
was implemented on January 1, 2011 and since then, instances of price
undercutting have drastically improved in the region. Moreover, the
association has put forward some conditions to all of its members.
Vinod Kumar
M, chairman of MPF said, “As per the condition, MITDA members will
get products in dealer price from sub-distributors in the Kozhikode
region. All members should keep a minimum margin, which we have set
at 5% for the time being. However, if any complaint arises, the
subcommittee will inspect the case. In case any member is found
selling any product without the minimum margin, his membership with
MITDA will be suspended. Moreover, we will share a list of suspended
members with the sub-distributors, so that they stop billing to
them.”

style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">“ size="3">This
step will refrain our members from getting products in dealer prices
from any of the distributors outside the Kozhikode region. It size="3">has
been positively received by our members. This has not only boosted
the confidence of our members, but also more non-members have joined
the association. This year, we have doubled our association
membership,” said Kumar.