MARK UP PLAN

Ashburton Guardian, Volume 68, Issue 273, 28 August 1948, Page 5

MARK UP PLAN

HARDWARE TRADE (P.A.) WELLINGTON, August 27. ' The Price Tribunal to-day announced the approval of the establishment of the percentage mark-up scheme for the hardware trade. The scheme involves the conversion to percentages of monetary margins existing at the time of the application (August 19) on specified lines-, of goods, and is conditioned on the margins of profit on lines which have yet to be included in the approved percentage lists, being critically examined and submitted at a later sitting of tlie tribunal. : Ti e margins in these lurthor lists might, have the effect of confirming increasing or contracting the percentage margins now approved. A further condition is that all percentages (both those now approved and any subsequently, approved) are to be reviewed by the tribunal on the basis of an investigation of the trading position of representative firms as at the end of 1C47-1948 and other trading years. All wholesale sales are to be subject to 21 per cent', discount for payclient by the twentieth of the month following the date of sale. At the hearing, a request was made by tlie Auckland Hardware Merchants’ Combined Price Committee that the tribunal agree to the continuation of the method of adding approved percentages. to the average landed costs, calculated by the committee. The decision of the 'tribunal is that percentages are to be calculated on individual landed costs, and not on averaged costs. , . . . . .. The tribunal’s decision is m line with the recent aproval given to the establishment of a percentage scheme for tlie grocerv trade. There is no increase' in profits or in prices to consumers involved in tlie adoption of the scheme.