business strategy

source

I was talking to a friend today who believes most business owners in Lagos sell at loss and anytime they are on sale or at the beginning of the year they sell at loss to restock. she even says it further by referring to a popular online company called Jumia that which sells some of its products at a loss because they sell at a very cheap price and in her argument I realize most people like her already believe this is what is happening because they are buying cloth from a vendor at an extremely cheap price means they sell at loss.

Why I didn't agree with her because of this popular saying that never sells your goods at loss, nobody makes it in business by selling their products at a loss because we did black Friday does not mean all the products sold will be at a loss cause they are cheap. On paper to many customers believe selling cheap products for them is either not of good quality or you want to clear your store and sell at a loss to restock new products but what most of these people don't under is the power of strategy

strategy

some businesses owners sell a product at a very cheap rate and their product is good and even sometimes the quality of their product is better than those selling at a higher price and for this reason, they have more customers than those selling at a higher price but sometimes people just patronize those selling at a higher price just to show off but those selling at a lower price are a using a strategy.

for instance, we all know the online store and how they operate and the main reason why they sell at cheaper prices is that they don't have a shop and even the transport fee is the customer that will cover the expenses, I know of a shop in lekki Lagos to rent it cost 5 million nairas and buying in this shop is very expensive because the owner of the shop will have added the money of this shop with their goods but online store don't have to worry about this because some of this expenses they don't pay it and the money they make from their site is enough to cover most of their expenses.

we have a strategy where people will tell you that buy three and get one for free does this mean that they are selling at loss or when they tell you that you to buy and when you open a code you will stand a chance to win amazing prices and some of the things they said you can win might be 1000x the product. this does mean they are doing all this in lose it is just a strategy.

conclusion

we have so many business owners and the competition is crazy but one thing that will set you aside is your strategy. you must have a way of giving people the best service, quality products, and also a good price and if you can do these on a whole different level your business will be a success.

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