Reduce prices, businesses told

Prosper Ndlovu Business Editor
VICE President Phelekezela Mphoko has advised businesses to reduce prices and improve on customer relations to gain a competitive edge and increase sales. Poor customer care and pursuit of huge profit margins has led to the demise of many businesses in Zimbabwe, said the Vice President last Friday while officially opening Choppies’ 17th branch in Bulawayo.

The Mphoko family is a key shareholder in Choppies Zimbabwe, a Bulawayo-headquartered giant retail chain. Zimbabwe’s economy has suffered heavily from the influx of cheap imports with an average trade deficit of $3 billion annually since 2009, according to the Zimbabwe National Statistics Agency.

“I want to dispute the notion that Bulawayo is dead and that there’s no investment in Zimbabwe. When we opened Choppies in Zimbabwe in 2013 we resolved that we’ll not milk our people by charging high prices,” said VP Mphoko.

“I want to promise the country that we’ll continue to charge the lowest prices and this is what our businesses should do — provide competitive service. Business is a service to the people and you shouldn’t cheat or rip them off.

“The people who employ you aren’t your managers but the customers. So, don’t be rude or frown at customers.”

Mphoko’s remarks buttress calls by the Reserve Bank of Zimbabwe for businesses to slash prices to increase the competitiveness of local products.

Surveys have shown that Zimbabwe’s products are relatively expensive on the market, forcing locals to prefer imports.

A handful of businesses such as Innscor and Delta that reduced prices for several products have already reported increased volumes and sales.

Confederation of Zimbabwe Industries president, Busisa Moyo, who also attended the event, applauded Mphoko’s stance.

“I think our local pricing is improving. As we buy more of local products we create more employment at home and assist industrialisation,” he said.

The VP also said Bulawayo remains a lucrative investment destination given that it still has the requisite infrastructure and was strategically positioned for export markets and access to raw materials.

He challenged local entrepreneurs to organise themselves, come up with sound business proposals and seek funding to re-open closed firms.

“Nothing can fail people who are united. We’ve a lot of technocrats here who’re seated at home doing nothing when the economy needs them.

“You allow people to strip company assets and keep quiet.

“Can Bulawayo rise again with this attitude? If we really want to turn things around the potential is there,” said VP Mphoko.

“I came here to see what we can do to rescuscitate Bulawayo. All I can say is that the government is ready to assist you.”

He said Finance and Economic Development Minister Patrick Chinamasa and RBZ governor John Mangudya were ready to support viable business proposals.

“These two are practical people and they’ve said if there’s anyone with a viable bankable project proposal they’ll assist such people in mobilising funding,” said the Vice President.