Fair Price Formation in Ready-to-Eat Cake Sales: A Fiqh Muamalah Analysis of Microenterprise Practices

Abstract

This study examines the pricing practices of ready-to-eat cakes at Micro Cake Business X in Talang Babat Village, Indonesia, from the perspective of fiqh muamalah. The study aims to analyze the mechanisms of price formation, the factors underlying price fluctuations, the transparency of price information, and the practice of reselling unsold cakes from the previous day. A qualitative research design with an empirical juridical approach was employed. Data were collected through non-participant observation, semi-structured interviews, and documentation involving the business owner, employees, and consumers. The data were analyzed through data condensation, data display, and conclusion drawing, while source and methodological triangulation were used to strengthen the credibility of the findings. The results indicate that cake prices are primarily determined by raw-material costs, prevailing market prices, product size and type, production complexity, consumer purchasing power, and established business practices. Price fluctuations mainly occur in response to changes in raw-material costs, with the owner adjusting selling prices, modifying product size, or reducing profit margins. The study also finds that selected unsold cakes from the previous day are resold after an informal assessment of their physical condition; however, production dates and storage status are not consistently disclosed to consumers. From the perspective of fiqh muamalah, these practices are generally permissible because price determination and profit-seeking are not inherently prohibited. Nevertheless, limited transparency in communicating price changes and the condition of previously stored products may weaken the principle of tarāḍin (mutual consent) and create potential elements of gharar and tadlis. The study concludes that fair pricing in micro-enterprises requires not only economic rationality but also transparency, honesty, justice, and consumer protection. The study recommends simple production-cost records, updated price lists, prior notification of price changes, separation of freshly produced and previously stored cakes, and clear production-status information to strengthen amanah, tarāḍin, and sharia compliance