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Distribution Business Revises Prices by 20%

Distribution Business Revises Prices by 20%

GEL depreciation in relation to USD has especially affected the consumer market, because the distribution companies buy products from the suppliers in USD.

Product prices have increased  in the distribution network too. After the GEL exchange rate started rising, products prices changed by about 10-20%.

“GEL appreciation has already made influence on prices. Some companies lowered prices to 10-20%. Some of them provide  discount campaigns. We strive for stability.

When the exchange rate is stable, for example, for 2 months, in this case the companies will take measures to regulate the price list.

We have no guarantee on this or that change  in the region or the world and the exchange rate may change.

Everybody is cautious and in most cases prices are lowered on temporary basis”, Dimitri Shengelia, one of the founders of Diplomat Holding, said.

Part of the distribution companies plan to revise tariffs by autumn.

“Both consumers and the distribution network painfully perceive increased tariffs. We have tried to maintain the existing prices for a long period, at the expense of our budget and we were supervising the dynamics of prices changes.

In the new reality prices were revised. We are supervising the pricing dynamics. We have already lowered prices by 20% on a certain category of products. However, prices will be revised on systematic basis starting autumn 2016.

Acceleration of this process may generate certain difficulties  in terms of logistics”, Alliance Georgian founder Mamuka Tsagareli noted.