Economist Yusuf Dodia has described price differentials as “very normal in a free market economy like Zambia” and that retailers and suppliers can set prices of their own choice.
Mr. Dodia who is also Private Sector Association Chairperson says consumers should instead of complaining about price discrimination but rather buy goods from retailers that are selling commodities at a cheaper price.
Mr. Dodia was reacting to concerns from consumers that government should intervene in the matter where retailers and different chain stores are selling same products/ commodities at different prices, that control of pricing in free market economy is illegal.
Some Ndola based consumers had numerous launched complaints that it was alarming the level at which retailers in the district are practicing price differentials so much to their dissatisfaction.
Danny Chibuye said it is unfair that consumers can be subjected purchasing same products but at different prices which he added means one ends up paying more than others.
Mr. Chiyesu called on the Zambia Consumer Association- ZACA to quickly look into the matter and control the situation which he said disadvantages consumers.
Mr. Chiyesu also called on producers of the various products such as margarine, sugar, cooking to ensure that retailers and chain stores are selling their products at the same price as not doing so will compel consumers become hostile towards their products.
“In as much as we appreciate that this a free market economy and every player has the right to set their own price, the differentials at which certain goods are being sold is just too wide. For example, at Shoprite a 2kg packet of sugar is selling at K39.99 while at Pick and Pay its going at K 45.
“Choppies is selling a 5 litre of Soyola cooking oil at K224.99 while Pick and Pay is selling at K 253.99, this should not be left unchecked,” Mr. Chibuye said.
But Mr. Dodia says that consumers like Mr. Chibuye should not panic but get commodities where they are being sold cheaply and that those selling at a higher price will be left with no choice but to lower the price.
“In a free market economy we don’t dictate what people should be pricing their products because each product has its own character. Price differential is based on quality, it depends on competitiveness and choices. In my view, anybody who tries to control price differentials is reversing the idea of free market economics something which is not this country stands for,” Mr. Dodia said.
He said to address the situation and protect public interest, there is need to more aggressively invite more competitors and investors in all the different sectors in order to ensure that the consumer gets the best quality and the best price.
Thank you sir for setting the record straight from that village sadists lies hh. Te economist ulya
“…In a free market economy we don’t dictate what people should be pricing their products….”
I think you are referring to a free market in a developed country, Sir.
In a country like zambia, transport to the cheaper product will end up costing the consumer more….
I really do not see the problem here. Sometimes people just want to complain.
Go buy your items at a cheaper store! End of story. Should government surely dictate prices? Some of us like the price differences so we can buy from the affordable ones.
The then MMD government and people who sold parastatal companies i told them not to go ahead with the privatization program, if the needed to privatize i advised the to sale 50% share but because the chaps were greedy the consultants mislead the government to benefit themselves and today they are saying ati economy, Economy if the nation can’t export you are as good as dead..The hypocritical liar is busy misleading people..
i agree with Mr. Dodia ppl should have the knowledge of understanding quality stuff that it comes with premium price tag, therefore if you can’t affort something expensive get a solution to buy something cheaper you can afford!! I said a thing about mealie meal on the article I came across a long while ago about the same story about some foods being expensive and most ppl cry about it which is normal and yet there other food you can afford and survive on. like Mr. Dodia Said” find something cheaper if you can’t afford expensive stuff” and by doing so, we wil be sending message to those retailers who are selling the same quality products expensive to lower thier prices. One thing I should indicate to all you complaining about expensive stuff, We just have to know how to play with our…