When it comes to how prices change in the market, I honestly believe it all depends on the economy. Prices can rise or fall at any time, and it’s not always the fault of the business owner. Many people think sellers are the ones increasing prices just to make more profit, but sometimes it’s far from that. The economy plays a very big role in how things are priced.
I remember back in the days when we could buy a small Nokia phone for around four thousand naira. It was something almost everyone could afford. But now, that same type of phone costs about twelve thousand naira or even more. The reason for this change is not because sellers suddenly became greedy, it is because of how the dollar rate has affected our economy here in Nigeria. Once the dollar rate goes up, almost everything goes up too. And if the rate drops, there’s a chance prices can come down a little, though that rarely happens.
This shows that prices don’t really have a stable range anymore. What costs a certain amount today might cost something totally different tomorrow. So, I don’t really believe there should be a strict cap on how high or low people can sell things, business owners also face the same economy we all live in, they buy products, pay for transportation, rent shops, and handle other expenses, If they are forced to keep prices low while their costs are rising, many will close down.
Now that doesn’t mean sellers should take advantage of the situation and overcharge customers, some people do that, and it’s not fair but I still feel the market should be allowed to flow naturally, If a business sells something too high, people will look for cheaper options elsewhere, competition usually helps balance things out in the end. Customers always have a choice, and when sellers notice they’re losing customers, they often reduce prices on their own.
Another thing I’ve noticed is how imported goods easily influence the prices of local products, for example, once imported rice becomes expensive due to dollar exchange rates, local rice also starts increasing in price, It’s like everything in the market is connected, sometimes, even things that don’t directly depend on foreign exchange still end up increasing because sellers know the general market mood has changed. That’s how unpredictable the economy can be.
Now when people talk about setting a price cap, I feel it sounds nice in theory but hard in practice, the government can regulate essential products like fuel or food to protect consumers but doing that for every product may not work, businesses need some level of freedom to adjust to the economy. After all, if we go to the market and a trader tells us the price has gone up, it’s usually because their suppliers also increased it.
If there’s one thing I’ve learned about pricing, it’s that stability only comes when the economy itself is stable. As long as the value of the naira keeps fluctuating against the dollar, we will continue to see unstable prices, business owners are not magicians, they can only sell according to what the market dictates, instead of focusing too much on price control, maybe the government should focus more on improving the economy and reducing import dependence, that way, we can all enjoy a more predictable price range.
I believe price inflation or reduction is not something anyone can fully control, It is a reflection of the country’s economic health, If the economy improves, the prices will naturally balance themselves, we just have to keep adjusting and hoping things get better.
This is my response to this episode of Hivelearners community prompt of #hl-w188e01 which the topic is tagged PRICE RANGE
