Can pricing be too low?

price than the other you will definitely go for that product.
Transerv are now the target of an investigation into their pricing – for being too low!
A select few competitors have initiated the investigation with the ultimate objective of a forced price increase in mind.
An unusual twist to price control . . . and how this will benefit the discerning consumer remains to be seen.
With less than two years in the automotive retail industry Transerv are the newcomers on the block.
Our opinion is that competition is a healthy element in any industry and in our industry there is a myriad of automotive spares retailers in Zimbabwe to choose from.
We have known South African brands such as Midas and Autozone and then several strong Zimbabwean born companies.
These retailers all sell the better known brands as well as source alternative brands imported from different countries – some will focus on service lines others on the hard parts – everyone is finding their niche in the market.
Several companies now have branches countrywide and retailers such as Kopje Motor Spares have grown dramatically now having seven branches countrywide.
Known brands previously carried a premium in an industry notorious for overcharging – a syndrome at its worst when the availability of spares was reduced by the hyper-inflative environment pre-2009.
At that time a vehicle owner could pay as much as double for a particular filter purely because there were few available and so the price increased based on demand.
The consumer was at a disadvantage in these circumstances since he lacked options.
Those retailers who resorted to overcharging because they could are now struggling if not already out of business.
Successful automotive retailers will try and offer their customer the best consumer package – quality, availability, service, and then of course price.
Price is not the only factor at play though.
At least three brochures offering automotive Easter specials are currently in circulation: namely ZIM-MIDAS, Kopje Motor Spares, and Transerve.
The prices are all reasonable and the consumer now has options and the competition is healthy resulting in focus on better service, better range, better knowledge, better value for money – all of which ultimately benefit the consumer – whose support is key to survival of any business in Zimbabwe.
Transerv “gone fishing”
Motoring, outdoor and leisure all blend so well – so why not include fishing to the package?
The MEGA Transerv that opened on Monday in Kelvin Road has a quality fishing range at opening special prices.
The first few days of sales have shown remarkable customer interest and support of the new range.
After six weeks of renovations the new Transerv branch has given Kelvin Rd a facelift.
Triple the size of the first Graniteside branch Kelvin Rd offers 320 square meters of modern retail space where automotive range of accessories is obviously a feature, but with the added attraction of the big camping, outdoor and fishing section and a varied selection of DIY & gardening products.
Paving the entire roadside area was part of the extensive renovations undertaken to ensure sufficient parking – an ongoing problem for customers that were supporting the Transerv Graniteside branch.
Next week in the adjacent building in the same complex the TRANSERV Body Shop opens where body parts for local and imported vehicles will be retailed and wholesaled from.
Supplied with the full Japanese vehicle range a lot of body parts previously unavailable or overpriced are now available at competitive pricing accessible to all.
The stock is already there. The final touches to renovations are underway and the signage goes up over the weekend for start of business on the April 6.
CBS franchise now in Harare
CBS (Clutch & Brake Specialists) have opened in Harare. CBS is a recognised South African franchise of the Midas Group of companies this is a welcome addition to the brake and clutch industry of Zimbabwe.
Offering a full range of quality products as well as services CBS are supporting both light and heavy vehicle fleets.
Fast turnaround time assisted by modern effective machinery has assisted them to penetrate the market.
Appointed distributors for Zimbabwe of the renowned FRASLE brand of linings, CBS are also wholesaling these non-asbestos linings to the brake industry.
Stocking a wide range of clutch and brake hydraulic seals and cylinders for light vehicles of the PBR international brand the general availability of brake & clutch components should improve in Harare.
Located in Edison Crescent in Graniteside CBS are offering collection and delivery all around Harare.
ZSW Zimbabwe Spares Wholesalers launch this week
To support the automotive retail industry of Zimbabwe the Transerv group this week launched their Wholesale Division – Zimbabwe Spares Wholesalers.
This division extends availability of the quality automotive brands to all other retailers in the industry.
Holding significant stock volumes of over 10 000 automotive lines other retailers are able to have product delivered to their doorstep to enable them to offer better availability to their customers. ZSW as a wholesaler has minimum purchase quantities and values to justify the trade discounts offered.
Based at 52 Edison Crescent in Graniteside Harare ZSW offer delivery service as well as having knowledgeable sales people on site for assistance in placing wholesale orders.
TRANSERV supports Sunningdale 2 School
In the spirit of supporting their community Transerv has formed an alliance with Sunningdale 2 Primary School.
A contribution of US$5 000 was much appreciated by the Headmaster Mr Phineas Goto.
The School Committee put the money to good use buying 300 chairs for classrooms, which previously had no chairs.
An official ceremony was held where Transerv offices Mr Tobias Chichoni and Mr Gibson Watikani of Transerv handed over the chairs to Mr Goto and the School Development Committee.
The children then performed several well-rehearsed songs to show their appreciation for the support.