BY AGATHA OSAJI
Many sellers of generators are languishing in poor sales as many members of the public cannot afford their high prices.
In Asaba, Delta State capital, Mr. John Emeka a generator seller in the Umuagu area, stated that the spike in generator prices in Delta State “is really hitting us hard. It’s causing financial strain for both businesses and customers.
The increase in generator prices is squeezing our profit margins, making it challenging to stay afloat in this tough market.” A customer at Mr. Emeka’s business place said “I rely on my generator as essential power backup, but with the prices soaring higher, it has becoming a real struggle to afford a new one”.
Emeka also said his consumers are feeling the pinch of increased generator prices due to financial strain for many individuals, especially those who heavily rely on generators. “This situation may force them to reconsider their spending priorities or possibly cut back on other expenses to accommodate the higher generators costs.
He stated that on the sellers’ side, including himself, coping with the price hike is challenging. “They may need to carefully strategize pricing to remain competitive while ensuring they cover their increased operational expenses. Our members need to explore areas such as to attract customers despite the elevated prices.
Emeka said factors contributing to the surge in generator prices in Delta State can be attributed to various elements. “The supply chain disruptions play a significant role, affecting the availability of raw materials and components needed for manufacturing generators. This scarcity can lead to increased production costs, subsequently impacting the final retail prices.”
“Inflation also plays a crucial part as rising inflation rates can drive overall cost for the operators, including those in the generator industry, forcing them to adjust prices to maintain profitability, especially during periods of heightened power outages or increased reliance on generators.”
“In my view, the increase in generator prices poses several challenges for both business owners and the local economy. For business owners, the higher cost of generators means increased operating expenses, leading to reduced profit margins.
This can potentially force some businesses to either raise prices on their products and services, making them less competitive, or absorb the additional costs, impacting their bottom line. Additionally, frequent power outages coupled with expensive generators can disrupt business operations, affecting productivity and customer satisfaction.
“On the customer side, the rising prices of goods and services due to increased operational costs for businesses can lead to higher prices for consumers, impacting their purchasing power and overall cost of living. These challenges highlight the inter-connected nature of the issue and its effects on both businesses and customers in Delta State.
