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Brighton Gumbo Business Reporter
CHOPPIES Zimbabwe has ventured into the purified water business with a game-changing price of $0, 20 per 500ml bottle compared to $0,50 charged by other players.
The Ministry of Health and Child Care recently announced the licensing of 67 water purification companies as more entrepreneurs join the growing enterprise.
Choppies Zimbabwe director, Siqokoqela Mphoko, said the $0,20 price was fair as the giant firm was focused on pushing large volumes to reduce costs.
“We’re pushing volumes to cut the production costs, so to us the price is fair as we can still make profits at the end of the day,” said Mphoko.
The Choppies price is set to entice the market and force other players to follow suit.
Reduced pricing dovetails with the government’s quest for reduced cost of doing business, enhanced competitiveness of domestic products and increased value for money.
Mphoko said the move to diversify and increase business was in line with the country’s economic blue-print, Zim-Asset.
“The blue-print requires an increased supply of domestically produced commodities, which is why we’ve opted to maximise on volumes so production costs are minimised and our prices suit the market.
“Our aim isn’t to kill people with prices but to ensure that people can get whatever commodity they want at an affordable price,” added Mphoko.
He said the company was not worried about how other retail outlets peg their prices as it focuses on what suits its capacity and the market.
“We don’t care about other retail outlets, how they perform and what they charge. We’re a people-oriented entity and our mandate is to ensure that people afford our commodities,” said Mphoko.
He said the group was working on a project to open a new branch in Gokwe.
The giant Botswana and Johannesburg Stock Exchange-listed firm dominates the retail business in the region with about 18 stores in Zimbabwe alone.
Recently it opened a branch in Gwanda and has set a target of 12 additional stores before year end.
Online Reporter