That means bigger, riskier overhead. I have divided what I’ve heard and read in response to the conclusion I made regarding the impermissibility of selling at different prices in cash and on credit to three major arguments: The first argument is as follows: we know in Islam that paying for something in advance of receiving it, for a price that is less than the current or expected price of the item is allowed, which is called bai’ al-salam (بيع السلم) and there is a clear hadith that allows it: Abd Allah ibn Abbas may Allah be pleased with him said: the prophet peace be upon him came to Madina while people were paying for dates two and three years in advance. There is nothing wrong with you selling an item to someone This is true, but for all intents and purposes, it is as if the seller did. When closing the deal, as a deterrent for customers choosing the cheaper price over the higher price, you must convince the customer that your product will deliver continuing value. Recall here what we talked about in my video on Murabaha regarding Eina sales. Allah says in the generous Quran: “And Allah has allowed trade but prohibits riba”.[3]. Eina sales are also just sales with two willing participants but the prophet’s widow had no doubt that it was prohibited in Islam because the substance of the Eina sale was a financing transaction. Sell something you’re passionate about. Is it ok to say I will sell you this phone for $120 if you pay in cash and for $200 if you pay me after a year? Just like when you make a purchase using a credit card there are two transactions: the first involves the credit card company lending you the money, and the second is the actual purchase. I’m talking about the legitimacy of a price that has been placed on lending. After the orders flooded in, the high street giant realised its mistake and cancelled orders at the knock-down price, offering disappointed customers £25 as a goodwill gesture. At a lower price, the only thing you have to sell is a lower price. So now to determine whether the lender is requiring compensation for lending their money we simply ask: is the buyer indebted with more than the cash price of what they bought. There is no specific limit to profit according to sharee‘ah. Clearly $120 right? In both cases, you end up with ownership of the asset and indebted with the item’s price. The broker deserves nothing but a fee. Abi Dawood. Kiran Vedantam January 24, 2018. In conclusion I find that while selling on credit is completely permissible in Islam, i.e. Sorry, your blog cannot share posts by email. For example, a five-quart KitchenAid stand mixer retails on Amazon for about $280. The high-end market can be intimidating. By adjusting price and value and developing a variety of options, you will find it easier to defend a higher price. There is nothing wrong with you selling an item to someone who buys it with the price to be paid later on, then he sells it for however much he wants, then he pays you the price, because Allah says (interpretation of the meaning): “Allaah has … Is the money factor in auto leases a form of Riba? The greater the daily maximum capacity it guaranteed, the higher the price on a per unit basis. Fast and free shipping free returns cash on delivery available on eligible purchase. Closing a sale successfully marks the beginning of a long and perennial relationship between you and your customer. Producers are not frightened by this prospect as long as it is possible to sell on the market at a fair price. What is the shar‘i ruling on a financial transaction which involves buying an item (a computer) from me for a certain amount of money which he will give to me after he sells the computer; he will sell it to another person for twice the amount of money he gave me, then after that he will give me what I am entitled to in full. This in Islam makes all the difference. Now you may say: but the seller never handed any money to the buyer. But if this variation occurs because of the purchaser’s skill in bargaining – so if he sees that he is not clever in bargaining he will increase the price, and if he sees that he is clever in bargaining then he will give him a lower price … Would I need some type of permit or license? What it comes down to is you’re selling on price. This site uses Akismet to reduce spam. It is much easier to defend a higher price by selling the problem. If I had a web site, purchased my products retail, then resold those items at higher prices to people who do not have access to these products in their own country. And since everything in Islam is permissible except that which is explicitly prohibited: this practice is not prohibited. Many of the hadith scholars like ibn serene, imam Sufyan al-thouri, imam alnisaie…explain this hadith as referring to credit sales wherein the seller says the price is so and so if you pay in cash and it is a higher price if you pay in the future. [Article + Video] — Practical Islamic Finance – Ace Financial Advisory Limited. How much of the seller’s money have I borrowed? You can't sell something for more than it is worth, because as long as there is no force or fraud, that person won't pay more for it than it is worth to him. And if the part you sell them goes into something they sell for $5,000, then your increase is only .005% of the total price of that item. Under variable rates of interest, interest … double the price, on condition that he does not take advantage of the Whether or not it is packaged as one big sale doesn’t change the substance of the matter. Gumtree is for UK users only. How to Sell for Full Price. Specifically, I want to try to ascertain if this practice involves the use of Riba or not. The impediment to higher prices is the perception of value. Haram is the things which are prohibited in the Quran and the Sunnah, things Muslim cannot do. who buys it with the price to be paid later on, then he sells it for Gumtree buyers have a reputation for haggling, so you’ll need to be prepared to negotiate on price. Post was not sent - check your email addresses! What is the ruling on snapping up something undervalued and later, within a few months or years, selling them for a higher price? So with credit sales, we know that there is a loan and we know that the loan amount is the cash price of the item. Sell the problem, not the solution. When your agent tries to talk you out of it: Listen! sell definition: 1. to give something to someone else in return for money: 2. to be bought in the way or quantities…. When you sell at a higher price, you are compared to competitors at all price points, which allows your prospective client to look for differentiation worth paying for. Take your used item to a local dealer or repair store and ask for an opinion on the general worth of your item and how much the dealer thinks you may be able to sell it for. Firstly, in the opinion of many scholars of hadith, it is not true that Islam never prohibited this. Precisely and exactly $120 right? Amazon Stock: A good buy? 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