I know what you are thinking, the world economy has gone global making businesses and transactions flexible in the very process. The first thing to consider is that not ALL entrepreneurs are operating on a global platform and secondly the cost of such operation can be very high when attributed to tangible goods or presence needed services. You have seen or at least heard of the high cost of standard of living that is rampaging the Nigerian economy. Some feel they are waking up into a nightmare and youi can't blame them much when seeing how fast all this processes have taken place.
Petroleum Motor spirit (PMS) price hit a staggering N1,600 within the week in some states with black markets at local areas reaching up to N2,000 in the process. We all know what this means? Road transport workers will have to step up transportation prices to meet up; some will even over hype the prices to make the most of the devastating scenario. This is affecting businesses and it's operations. Speaking from my experience this week, I wanted to buy a new gadget for myself. Actually, I had purchased it twice and it seems the sellers made a fool of me (or maybe themselves) as the product never lived up to expectations.
source
I had to look for one of the best places to get quality gadgets and when I did locate the first one, the challenge was the distance. Assuming I have to spend up to 10% of the product price as transportation. One would suggest I should have opt for a dispatch rider, the price will still be high although not as personally going there. Secondly, I had to be there to see the product myself; after getting kind of dubbed twice, I was not ready for voice over assurance. In the end I had to forgone going there also adding to the fact I may get an unsatisfactory product and end up wasting the entire transportation.
Don't think this is only me having to make such decisions, there are many and many people making these decisions currently and it is squeezing life out of businesses in the process. The absence of a liquidable customer base only heads business operations into extinction. It something that is worth considering as we speak with relevant questions like, when will the whole 'wild wild west' come to an end?. Some business owners especially the small and medium scale enterprises don't even open on daily basis anymore. The truth is, paying so much transportation to business premises to end up not selling to cover food, daily business expenses plus transportation is literally a vote of no confidence. Those who are doing business in the heart of the city are feeling the heat most as customers tend to patronize near distance vendors.
source
The current crisis is moving above entrepreneurs' necks and I am seeing more pending bankruptcies should this persist for another calendar year. entrepreneur will be unwilling to renew shops or office rents, something that is worth considering about the future of real estate in the area of shop and office space leasing. Nigeria's economy has really been thrived by small and medium scale enterprises, so what happens when this sector shrinks? There is much to consider from here yet this is what the government are failing to carefully analyze. The cost of moving goods is on the rampage. I currently met someone who had a business idea of moving goods from the local areas to the town for selling yet said it will all end in a loss when expenses (transportation taking a huge parts) are all deducted.
So the cost of transportation is affecting the fate of both customers and sellers. With adjustment upon adjustment, it seems it making everyone focus on too much forgone alternatives with many even settling for inferior products within. It always saddening when a country with such abundant resources and global influence fails to utilize but rather bounce more pressure on its citizens. There is so much over punching of calculator by entrepreneurs and individuals alike. Everyone want to make the most of the money they have especially when it is loosing much value. When customers specifically become more carefull in spending it always leads to a rigid cash flow. You can't blame anyone much as we speak, the government have forced the people into a position of survival.
To conclude, let me add, the Nigerian economy is painted red everywhere and it is really affecting daily businessing. Entrepreneurs continue to be pushed to the edge with an increasing pressure. We await green light yet we don't know how soon this can become a possibility. As we speak, there has been no easening measures meaning there are still potential of more cloudy business days. When putting all this uncertain together one can say this FUD that is rampaging the Nigerian economy has brought a lot distress causing disconnection between sellers and product buyers.
Posted Using InLeo Alpha