Ruling on Price Variations for the Same Item

Authored by Dr. Muhammad Zia-ur-Rahman Azmi (رحمه الله)

Scenario of Different Prices for the Same Item:​

If a merchant sells the same item to different customers at varying prices, such as selling to one person for 10, to another for 20, and to a third for 5, the permissibility of this practice depends on the underlying reasons:

1. Price Variation Due to Market Fluctuations:​

If the price difference is due to market changes where prices rise and fall regularly, there is no harm in selling according to the current market rate. This practice is permissible and aligns with Islamic trade ethics.

2. Price Variation Due to Customer's Bargaining Skills:​

If the merchant alters the price based on the customer’s negotiation ability—

• Example:
  • Offering a lower price to a skilled bargainer due to their persuasion, while charging a higher price to someone less experienced in negotiation.
• Ruling:
  • This practice is not permissible, as it contradicts the principle of goodwill (نصيحة) and constitutes a form of deception.
  • The Prophet (ﷺ) said:
    
    "Religion is sincere advice—to Allah, His Book, His Messenger, the leaders of the Muslims, and their common folk."
    (Sahih Muslim, Hadith No. 55/95)
  • A merchant would not appreciate such treatment if they were in the buyer’s position, so they should not treat others in this manner.
  • The merchant must maintain consistent pricing based on the prevailing market rate and not exploit a buyer’s inexperience.

Exceptions:​

1. Discounts for Friends and Close Associates:
   
   • Reducing the price for friends or acquaintances out of goodwill is permissible.
2. Negotiation Within Market Norms:
   
   • If the seller sells goods at market price but agrees to a lower price after persistent bargaining, it is also permissible. Such a transaction does not deviate from accepted market practices.

Conclusion:​

• Permissible Practices:
  
  • Price variations due to market conditions.
  • Discounts for friends or persistent bargainers within market norms.
• Prohibited Practices:
  
  • Exploiting a buyer’s lack of negotiation skills to charge higher prices.

Merchants must practice fairness and maintain transparency to ensure goodwill and ethical trade.

—Referenced from Ibn Uthaymeen: Noor ‘Ala al-Darb, Vol. 6, Pg. 254.