Chaotic Home Appliance Market; Sellers Say 'Not Selling is More Profitable than Selling'

The prices of Iranian and foreign home appliances have increased by 20 to 30 percent in recent days compared to last month. Sellers also point to the non-compliance with prices by factories and the unofficial increase in prices without issuing invoices. According to the newspaper Etemad, the home appliance market in Iran is currently facing instability and rising prices. While sellers complain about the lack of customers in the market, they cite the increase in the dollar price as the main reason for the high prices of domestic and foreign goods. Some of them state, 'If I sell, I can't buy the same item at the same price,' thus prices have unofficially increased. Sellers say that 'the profit in the home appliance market is not selling' and the profit from 'sleeping on goods' is greater than selling and restocking the store. They add that by holding onto goods, 'there's no tax to pay.' According to this report, currency fluctuations, especially with the increase in the free dollar rate and the establishment of a commercial currency market, have led to a decrease in the supply of imported goods and an increase in the prices of smuggled products in the market. Some goods have become 15 to 30 percent more expensive compared to two weeks ago, and even with a lack of demand, sellers continue to keep prices high. The increase in prices from factories and the elimination of profit margins have forced sellers to sell products at higher prices. Meanwhile, many customers are looking to buy goods at factory prices, but due to rising prices, they are unable to purchase. Energy rationing is also another factor in the home appliance market crisis. In another news, the Tehran Chamber of Commerce had previously announced: 'Given the intensification of cold weather and gas shortages, large stores selling non-essential goods must be closed, and only stores that offer essential goods for people should remain open.' This trade body threatened, 'If these stores, including home appliance sales centers, resume operations, we will seal them.' Some experts believe that the increase in preferential currency prices alone could completely nullify the increase in wages in the first month of the year 1404. With the continued rise in inflation and the intensification of the depreciation of the national currency in Iran, Iranian media reported that over 80 percent of Iranian households have fallen below the global poverty line. Predictions of increased poverty and decreased purchasing power have led the parliament to approve electronic coupons for at least 5 deciles of society in the budget law for the coming year. The ongoing record-breaking dollar prices in Iran coincide with closures due to electricity shortages and a sharp increase in prices in Iran; installment purchases have reached nuts and fruits for Yalda night, while per capita meat consumption has fallen, and gasoline inflation looms over household livelihoods.