Greed In most Kenyan businesses

Notapeoplesguy

Notapeoplesguy

Lister
The past 3 months i have been delving into the world of business to be precise Nairobi and its insane the kind of margins people are aiming to get from a single product. I have learnt Quickmart is the most expensive place to shop,they absolutely do not pass the benifits of economics of scale to the final consumer. They literally sell consumer products about the same price or even more expensive as the local duka who does not enjoy a fraction of the discounts Quickmart gets. This is why most supermarkets in Kenya fail adding to managerial problems. Big chain stores like Wallmart have been in business because they have perfected the art of pinching their suppliers as much as possible then passing the benefits to the local consumers. This is why they have been famous as the go to place for discounted products.

Another scenario i needed bloackboards for a project about 70 pieces of them,i even hired an interior desgner for that project. She brings me a figure of about 3400 a piece. I do my due deligence and ask aroound am given a figure ranging from 3,100-3,300. I call my Asian friend and tell him what i needed he gives me a quote of 2,750 thats a difference of 650 per piece *70= ks 45,500 fucking hell i fire the interior designer for utter incompetence and suspicion of theft. She should know better if she does this for a living most propably she tried to pull a fast one on me. Now back to the other local hardwares this guys have a markup of over 700 for a single product which is to say the least is utter greed. This is why most small businesses close down they are focused on profit margins per product instead of bringing affordabilty therefore enjoying volumes of sales through return customers. The supply chain contributes to the reason to the high cost of living, too much greed in most local business wallahi.
 
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Denis Young said:
Wueeeh.. 45k is a bit too much to rob from a client. But I agree. People are selling so called premium spoons and knives for over 2000ksh and these things are sourced straight from the cheapest hole in China.
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Am telling you man its cruel in these streets. Everyone try to go to a local hardware and ask them how much they will sell you blockboards then post the price and location. In the meantime let me call my guy and ask him updated prices.
 
Notapeoplesguy said:
Am telling you man its cruel in these streets. Everyone try to go to a local hardware and ask them how much they will sell you blockboards then post the price and location. In the meantime let me call my guy and ask him updated prices.
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I talked to him current prices
Bloackboards 8*4 3/4"= 2800
Mdf 3/4" Uganda =2,900
Local Mdf 3/4" =3150
 
RANDY $ said:
😁 😁 ... this is how it works clients give a bq najaza being zangu akikubali ni sawa akishindwa pia ni sawa we move on.
Fyi..can get them for less than 2800 but trust me kwa bq io ndio bei...
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This is what am talking about. Do you charge for sourcing goods or your expertise? This is why anyone building should source materials themselves upto the last nail. Elders be wise when dealing with contractors. Utter lack of integrity in most of them @RANDY $ here being a prime example.I would have fired you at the spot just like i did with that lady, do you think a client will ever want to do work with you once he finds out you overcharged him more than ksh 500 per board?
 
Notapeoplesguy said:
This is what am talking about. Do you charge for sourcing goods or your expertise? This is why anyone building should source materials themselves upto the last nail. Elders be wise when dealing with contractors. Utter lack of integrity in most of them @RANDY $ here being a prime example.I would have fired you at the spot just like i did with that lady, do you think a client will ever want to do work with you once he finds out you overcharged him more than ksh 500 per board?
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hio bei ni supply and fix au supply pekee?
 
Good contractors are underated in Kenya. I will work with an honest, efficient and quality focused contractor any time.

Our workmen (foremen and fundis) are so poor at executing and even pilfer materials.

I swear the next time I'm building I will get a contractor, give him designs/specifications and have an independent professional perform quality controls. Any reworks and deviations from design get charged to the contractor. That's unless I'm building a pigstay.
 
Notapeoplesguy said:
She brings me a figure of about 3400 a piece.
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What is reasonable margin to you? Anunue Sh2,800 akuuzie Sh2,800?

In fact, ata mhindi mwenye anakuuzia hio Sh2,800 is probably making more than that Sh600 you're complaining about.

Business deals are not philanthropic ventures.

Let's suppose you had bought the boards @Sh2,800, were delivered and when you're just about to offload, a neighbor/someone comes running asking if you can sell him the boards immediately. He says he knows they go for Sh3,400 each. Now, be honest with yourself/us, would you not sell?

Ama you would tell them hata ni cheap si ya hio bei?
 
Pseudonyms said:
What is reasonable margin to you? Anunue Sh2,800 akuuzie Sh2,800?

In fact, ata mhindi mwenye anakuuzia hio Sh2,800 is probably making more than that Sh600 you're complaining about.

Business deals are not philanthropic ventures.

Let's suppose you had bought the boards @Sh2,800, were delivered and when you're just about to offload, a neighbor/someone comes running asking if you can sell him the boards immediately. He says he knows they go for Sh3,400 each. Now, be honest with yourself/us, would you not sell?

Ama you would tell them hata ni cheap si ya hio bei?
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You are exactly the kind of person am talking about, anyone selling a product at 3400 when it goes for 2,800 elsewhere is robbing his cliets. Dont be an idiot the mhindi and the local hardware all source the products same place why will the Mhindi be cheaper by more than 600? Even if the mhindi is making a 600 profit it means the other hardwares are seeking more than 1200 on a single item. Such greed wont take you far in business.
 
JazzMan said:
A smart businessperson will provide products/services at reasonable prices. Kila mtu is trying to take advantage of everyone else. If you prove you are not out to profit plainly but to actually help, utapata flock of customers.
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Hakuna kitu kama reasonable. If you can't get it elsewhere, or if you don't know where to get them, I'll price it how I want. I used to get some stuff I won't name for Sh19 in China and I sold them for Sh750. They moved like hot cakes until people flooded the market with them. Now they go for about Sh80 which is still a huge margin. I still have an ad with Sh580 as the price and it gets orders every now and again.
 
Notapeoplesguy said:
This is what am talking about. Do you charge for sourcing goods or your expertise? This is why anyone building should source materials themselves upto the last nail. Elders be wise when dealing with contractors. Utter lack of integrity in most of them @RANDY $ here being a prime example.I would have fired you at the spot just like i did with that lady, do you think a client will ever want to do work with you once he finds out you overcharged him more than ksh 500 per board?
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If its a labour contract I will give the prices for local hardware uende ujitafutie... what most client tend to do they rush to gikomba thinking it cheaper than the local hardware but once you include transport unakuta you didn't save shit .....
But for supply and fix I will give the prices that are slightly lower than the local hardware which in any case you were still willing to buy from .... mimi I if relationship with ppl or companies who will gives a good discount sijui mbona inakuasha.
 
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