Price Fixing and Network Building

Mama Bola and Anti Sheri are traders. They bought biscuit in carton from the market to retail in the neighbourhoodEach biscuit cost price is N40 each
Mama Bola sell here at N50 per one while Anti Sheri sell each biscuit at N70New fly around in the community that we can all save N20 if we buy biscuit from Mama Bola.Hence irrespective of the distance to Mama Bola’s shop, we will all find our way thereWe even make it an habit of collating money from every other person around who might have interest so we can save some timeMama Bola now sell 5 cartons (100 pieces each) of biscuit per weekWhile Anti Sheri struggle to sell a carton of biscuit in a month due to low patronage………………………………………………Apart from biscuit, Mama Bola sell all other provisions just like Anti Sheri.Everyone has come to relate mama Bola’s goods to being always cheaper than the other stores hence we not only buy biscuit but every other provision needs.The believe is that her goods is always affordableEven when a new comer come in to town we will always point out mama Bola’s shop and back it up with its cost saving experience……………………………………………..Whats the benefit to Mama Bola?* Her turnover is ridiculously high despite sling at less price than othersOnly few Nigerians understand this………………………………………………A seed that sells at company price of N1,000 was offered for N2,700.Last price N2,500Because the company did not have in stockI simply pass by
It’s not a do or die affairContinue in the search mode………………………………………..What the seller did not understand* Never going to trust any product from him as not being over priced* Won’t even go near any of his product not to talk of verifying if it’s the actual or average price* If I am not buying from the seller, how possible will it be for me to introduce someone else to him for seed purchase.Capital NoOverpricing something that has a fixed price might get you some extra at some point. But the disadvantage far outweighs the advantages#farmprofitably
#farmrite
#farmbae
#farmvilla

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s