Some spare parts dealers at Abossey Okai are resisting calls to reduce prices despite the recent appreciation of the Ghanaian cedi against the US dollar.
According to the traders, the goods on sale were purchased when the exchange rate was considerably higher. As a result, lowering prices now would lead to losses.
This position contrasts with the guidance from the Abossey Okai Spare Parts Dealers Association, which has urged its members to adjust prices in line with the cedi’s recent recovery.
Speaking to Citi FM, Francis Appiagyei, a dealer at Abossey Okai, explained:
“For now, maybe it can’t be possible because we ordered the goods at a certain rate which is higher than what we are seeing now.
With that price we have to sell, and when the goods finish and you are ordering another one with a reduced [exchange] rate, then definitely the prices will come down.”
Another dealer, Yaw Ansong, expressed similar concerns about financial sustainability if prices are slashed prematurely:
“Unless I sell the one which I already ordered and finish before I can reduce the \[price] of the goods. I haven’t ordered new one so I can’t reduce the price. If I reduce the price I am going to lose my job.”
Some traders, however, appeared open to adjusting prices in the future—provided the cedi remains stable.
Eric Osei Danso stated: “We have come to understand that the dollar is down and the cedi is also going up, so we are going to do what they say, but not now. We will go down on prices when we see the dollar is still stable at where it is.”
While consumers may hope for immediate relief, many of the dealers insist that practical economics must guide any decision to revise prices.
Source: Myjoyonline.com
