There is little usage of the 50 paise coins in India as of today. There are very few items which are not rounded off to the nearest rupee. Most of these items are found in the retail shops which sell cigarettes, pan, gutkha, etc. The margins on the sale of these items is extremely low and the vendors usually have to depend on volumes, bulk buys, promotional schemes introduced by the distributors or the companies and also the cross sale of other items like mouth fresheners, etc. for their profits.
Till now, most of the cigarette brands were being sold at prices such as 2.5 rupees, 4.5 rupees, etc. As a result, due to the low availability of the 50 paise coins, they would tender the change in the form of a mouth freshener or a chocolate or any similar item of the same value. Over the course of the day, they would manage to get huge additional sales just by handing out these products instead of money. What worked in the favor of these companies is also the fact that a lot of highly popular brands such as Gold Flake and Classic were priced at 4.5 rupees. As a result, the change would run out quickly and the sales of these items would begin.
It has also happened in some cases that people have developed a liking for one or some of these products which who trial is forced in by these vendors. Some consumers have also begun developing a habit of consuming these items after smoking a cigarette as they do not have anything else to do with it.
The sales of these products has grown to epic proportions by such kind of activities without consumers too many consumers having an active inclination towards buying these products by themselves.
It would be interesting to see how a change in the price of cigarettes, tobacco, etc., would not impact the sales of these dependant products. Cigarette consumers is unlikely to change with minor price changes however the sales of these items would definitely take a hit, at least in the short term.
Till now, most of the cigarette brands were being sold at prices such as 2.5 rupees, 4.5 rupees, etc. As a result, due to the low availability of the 50 paise coins, they would tender the change in the form of a mouth freshener or a chocolate or any similar item of the same value. Over the course of the day, they would manage to get huge additional sales just by handing out these products instead of money. What worked in the favor of these companies is also the fact that a lot of highly popular brands such as Gold Flake and Classic were priced at 4.5 rupees. As a result, the change would run out quickly and the sales of these items would begin.
It has also happened in some cases that people have developed a liking for one or some of these products which who trial is forced in by these vendors. Some consumers have also begun developing a habit of consuming these items after smoking a cigarette as they do not have anything else to do with it.
The sales of these products has grown to epic proportions by such kind of activities without consumers too many consumers having an active inclination towards buying these products by themselves.
It would be interesting to see how a change in the price of cigarettes, tobacco, etc., would not impact the sales of these dependant products. Cigarette consumers is unlikely to change with minor price changes however the sales of these items would definitely take a hit, at least in the short term.
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