How can our online shop sell balloons at a cheaper price?

Do we need to say this is strange? There was a customer call. This customer had viewed 'Snow White Super Shape' foil balloon from Anagram Balloons at our web site at the link

He had also seen the same balloon offered for sale at at the link

He had the following question to ask:

When a reputed website in India can sell the balloon for Rs425 a pack, how can we, at,  a relatively smaller e shop, sell the same  product for Rs225 a pack? Frankly till 3oth Nov 2013, we were in fact selling the same product at Rs200 per pack and we increased our prices effective only 1st Dec 2013 due to the depreciating rupee.

We explained to the customer that we are a direct importer from Anagram balloons unlike FlipKart.  The customer was not convinced. He accused us stating we are selling a fake product!

Its a misconception that all that is sold in large stores are of better quality. This is not true. Let us narrate a story here: 

we have approached a big retail chain which showed interest in selling our balloons and party products. Despite agreeing that our products are of good quality and reasonably priced, they refused to buy our products stating that they expected a much higher margin. I had to point out that the balloons that are sold in their stores were not of good quality whereas our balloons comply with CE EN 71 European standards on toy safety and also TUV certifications. Our balloons are made form pure natural rubber latex and hence 100% bio degradable.  To this, the chief merchandiser responded like this "people always assume that big stores sell better products and so they are ready to pay more for the cheap quality balloons that we sell ; he went on to say that they were only interested in the margin they earn and not bothered about quality"

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