The Nation Newspaper

Tag: retailers

  • Manufacturers guarantee products, not retailers

    Last Friday, an engineer Tobison Oluso tried in vain to hold his anger and frustration in check as he could not understand why a shop within Ikotun Egbe shopping Mall would refuse to give guarantee on products purchased from it.

    In his anger, he called ConsumerWatch pointing out that even the receipt issued to him was bearing, ‘goods purchased in good order cannot be returned or money paid refunded back to the buyer’.

    “I did not notice all these till I got home and had a closer look at the receipt. Again, I expected a guarantee but did not know there was none. At this point, I went back to the shop and demanded a refund of my money which I did not get,’’ lamented Tobison Olusola.

    He appealed to ConsumerWatch to intervene and appeal to the electronics company, ‘Y.K Electronics’, to revert their policy and issue him with a guarantee on the LG television set he bought or take the television set back and refund his money.

    However,  manager of the shop, Mr. Kola Ojo, explained, though arrogantly, that the shop on its own cannot give buyers guarantee on any product as they are not qualified to do so as they did not manufacture the product.

    Pointing to a carton of an LG television set which has a silver and red sticker bearing, ‘2 year warranty’ MEZ64833201, he observed that the manufacturer had already guaranteed the product and there was no need for further guarantee from the retailer.

    On the additional information on the receipt which stated that ‘goods bought in good condition are not returnable nor can money be refunded to buyers’, the manger explained that sometimes customers buy goods in excellent condition, damage it at home and bring it back to the shop for an exchange or a refund.

    “We make sure we sell goods that are in good condition. If it is electronics, we test it for buyers before they leave the shop. If the buyer then goes with the product and comes back later to claim it does not work, we will not accept it nor refund the customer,” emphasised the shop manager.

    Yes, it may not be the responsibility of the retailer to issue guarantee or warranty, as he is not the manufacturer, but he is the person between the buyer and the dealer or manufacturer. It is his sole responsibility to clear any confusion the buyer may have concerning guarantee or any other worries over his purchases.

    The buyer does not have access to the dealer or the manufacturer but the retailer does.

    Presenting the case to LG electronics, a top management staff who preferred anonymity, said that LG television sets come with two years’ guarantee. “If anything happens to the product as listed in the conditions of the guarantee, we encourage the consumer to take the product to our Service Centre at No. 22 Boma Rd. Apapa, Lagos, for a free replacement of a part or servicing subject to what is wrong with the product.

    “Depending on what is wrong with the product, the consumer may not need to spend more than two hours in our service centre as we have a fully equipped and modern service centre with world class professionals to attend to customers.”

    However, the LG staff warned that the product concerned must be genuine LG product, adding “that is why we advise consumers to patronise LG brand shops which are located all over the nation.”

    Speaking further, he said, “Though a retailer cannot give guarantee on a product but good customer service requires a retailer to offer the customer the opportunity of taking the product on his behalf to the manufacturer’s service centre or nicely directing the customer to the manufacturer’s service centre.

    “In the case of Tobison Oluso, the product was not even damaged; he just needed more assurance and explanations. The retailer could have made the customer satisfied by offering more reassurance by telling him that if anything happens to the product within the specified guaranteed period that he should bring the product back so he will assist him to take it to the service centre,” explained the LG staff.

    Both the Standards Organisation of Nigeria [SON] and the Consumer Protection Council [CPC] of Nigeria have repeatedly and on different occasions condemned the idea of business men printing ‘goods sold in good condition are not returnable, exchanged or money refunded’ on receipts.

    The two government regulatory agencies had promised to get businessmen to stop the ugly development, but so far nothing concrete has been done.

    The former Director General, (CPC), Mrs. Dupe Atoki, had accused retailers of short-changing consumers and abuse of consumer rights with ouster clauses such as ‘no refund of money after payment’ and ‘goods received in good condition cannot be returned’ on their receipts, while the then DG, Standards of Organisation of Nigeria (SON), Dr. Paul Angya, wondered if the statement was in anticipation of a product failure.

    Both DGs made the allegations in Sheraton Lagos at the interactive forum of CPC with stakeholders on enforcement of warranty and guarantee on products and services.

    Atoki, while addressing key industry operators in automobile, electrical/electronics, heavy duty equipment, on-line markets and superstores subsectors of the nation’s economy, regretted that Nigeria was the only country where such clauses are printed on receipts.

    “The situation in Nigeria is a sharp contrast as traders boldly print on purchase receipts terms like ‘no refund of money after payment’ and ‘goods received in good condition cannot be returned’. It is unacceptable that a producer, distributor or trader will attempt to completely vitiate the right of the consumer to redress by caveats of this nature.”

    Describing the situation as intolerable, Atoki said that manufacturers and retailers will be given a time frame to remove the statements from their receipts, warning that at the expiration of the time frame, the agency will come hard on those who refuse to comply.

    She warned that “the statement should not be a blanket statement, it should be subjective. Take each situation and analyse it fundamentally,” adding that on face value, the product may look okay while it may have manufacturer’s defect which can only be detected when the buyer puts it to use.

  • Flash-sale sites taking business from luxury retailers

    Flash-sale sites taking business from luxury retailers

    Wealthy consumers are among the most active online shoppers. Most luxury brands have been slowed to offer the white-glove treatment expected by their online customers. As a result, lesser-known retailers, flash-sale sites and mass merchandisers have moved in to take market share.

    Experts have said many luxury brands are relying too much on their reputation. Affluent consumers expect luxury retailers’ websites to replicate the same shopping experience they offer in their stores.

    But, according to experts, many luxury brands have been slowed to launch full transactional websites, creating the risk of alienating a customer base with growing interest in online shopping.

    Experts have also said alternative destinations are making inroads with the new breed of luxury shoppers, who make purchase decisions based on value and information rather than brand image. Wealthy consumers are among a new breed of online shoppers, who are not easily swayed by marketing hype. They feel empowered by the internet and diligently research online to find good deals and assess product quality. And they feel entitled to a superior online shopping experience with rich visual content and high-class treatment.

  • Ogapatapata to bring more Nigerian retailers online

    A new e-commerce platform, www.ogapatapata.com.ng, is seeking to promote Nigerian retailers online. Founded by Solomon Okpa, the portal which was officially unveiled recently in Lagos, said the brand is geared towards revolutionising the Nigerian digital market.

    “I had a deep conviction that one day in the near future, physical shops and market spaces would go extinct and be replaced by virtual shops and markets (e-commerce),” said Okpa in a chat with The Nation.

    “We have also created the e-profile and e-shops to accommodate every Nigeria, both old and young, literate and illiterate.”

    The name, Ogapatapata, is a Yoruba word interpreted to mean ‘ overall boss or leader’.

    The idea of the business was conceived around 2010 and became flesh in October 2015 as a WhatsApp group called “Exchange Items” said Okpa.

    “There and then the first site was coined www.exchangeyouritems.com, which later was changed to its present name www.ogapatapata.com.ng in May 2017. It was officially unveiled September 30, 2017.”

    He disclosed that it is free to use the website and they just have to create a Vendor account and create a store. Over 150 vendors are already registered on the website.

    However, customised advertisements are paid for. Okpa also said the company has not deviated from its initial goal of exchange of goods and services.

    “Our USP is Exchange of items – good for good, goods for services or services for services, reinventing the ancient trade by barter system,” he said.

    “Take for example someone giving out his garri for soup. I have also exchanged my books for slippers and the list is a long one. The concept is that we need money to buy one thing or the other. What if we can bypass money and just exchange what we have for what we want.”

    Okpa said Nigerians identify with the brand name, ‘Ogapatapata’ and the company has the “possibility of competing with other foreign brands like amazon.com, alibaba.com and the likes.”

    He however, said the business faces some challenges, especially, in getting its message to Nigerians.

    “In a market like ours where people are yet to avail themselves with the online business, much advertisement is needed, personnel to visit market women and other subscribers and to achieve that capital is very essential,” he said.

  • Online marketing boom for retailers

    Online marketing boom for retailers

    For retailers desirous of making sales without incurring unnecessary costs on advertising, online marketing aided by the social media is the way to go, reports TONIA ‘DIYAN

    Trading through online platforms and the social media networks is helping retailers have a wider reach to their prospective customers, both at home and abroad. This is because the barrier of distance can be successfully broken, making it possible to strike business deals, trade and shop with anyone.

    Besides, online platforms help to create mutual relationship between sellers and buyers, which gives both parties a first-hand communication where feedbacks from customers are guaranteed. For retailers, who transact business online, the feedbacks help to improve their services and maintain cordial relationship with their customers.

    Retailers, who do business online are at an advantage as they become easily accessible to all classes of people because of their activeness in the virtual society.

    Moving with the trend of trading online, convenience and time saving factor has made it possible for buyers to order their desired goods in the comfort of their homes.

    Raphael Afaedor, co-founder/ Chief Executive Officer (CEO) of Supermart.ng, a grocery online store, saw the need to solve many everyday problems of households in Nigeria, especially Lagos, hence, he started Supermart.ng.

    “I have observed the stress people go through in order to shop for groceries,” he said.

    He continued: “Most times people move from one shop to another or visit the local market to buy local ingredients. This is due to the unstructured nature of the traditional retail and wholesale system.”

    Afaedor, who was a co-founder and managing director of Jumia.com.ng, from March 2012 to January 2014, partnered leading supermarkets and local markets and has developed the largest one-stop online market for customers to shop from over 60,000 items and have it delivered to them within three hours across Lagos.

    According to him, the initial response from people was not encouraging as most were reluctant, but later came to trust the system. From what it used to be when it started a few years ago, Afam Ayika, former Marketing Manager, Jumia Nigeria. said there has been significant progress.

    “For instance earlier in 2012 e-commerce sites were recording 2,000 orders per day. Between 2012 and now some of us have had an exponential growth to the tune of 100,000 orders per day and record over 50 per cent growth month-on-month. The major thing is to put in place a structure that customers can trust. For instance, Supermart.ng has put a system in place that customers can trust to deliver their groceries to them as early as three hours without any hitch,” he said.

    Speaking of challenges, the traditional wholesale and retail system is not organised. This is visible in the fact that it is quite hard for someone to get everything he or she wants in just one supermarket. Therefore, what these online stores have done is to partner leading supermarkets and local markets.

    According to operators, it ensures that customers can buy their groceries and everyday essentials (local and imported products) at one address online and have them delivered to their homes and offices in a short time. And with just a click a person can access everything he needs from the comfort of his home without having to move from one market to another.

    Another challenge, according to them, was logistics, especially in Lagos, where there is the fear of the unpredictable traffic situation.

    The traffic situation is a challenge both to the customers and to the e-commerce companies. For the customers, it is a discouraging factor from going to the stores. For the e-commerce companies, it accounts for their delay in delivery.

    Traditionally, it takes two to 10 days for orders to be delivered to customer’s doorstep. However, this approach cannot be used for groceries, considering that most of the orders are needed the same day. In view of that, what some operators have done was to embark on adequate city research to understand the flow of traffic so that they are able to deliver groceries in the shortest possible time against all odds. During the last fuel scarcity when telecoms companies and banks were shutting down, online stores still delivered and did not fail in their delivery promise.

  • How to survive recession, by retailers

    How to survive recession, by retailers

    Against the backdrop of the lingering recession, most retail businesses have adopted ingenious means  to tackle the credit crunch taking a toll on businesses, reports TONIA ‘DIYAN. 

    There are growing concerns for the survival of many businesses, especially as the recession bites harder. For retail businesses, the concerns are just the same. However, for a retail merchant worth who knows his onions there’s a way out.

    Patience Agelibe, who runs a chain of small retail stores, has since devised ways of coping with the recession. Agelibe, mindful of the threat posed by the bullish big stores that have the wherewithdal to run their business, including giving away products at the cheapest rates, said efficient delivery of customer service was necessary to win new prospects and old customers.

    Similarly, Delightsome Stores Chief Executive Officer (CEO), Mrs. Modupe Shopeju, said: “It has to do with the strategy employed by the store, big or small.”

    She said: “Naturally, the retail climate favours big-box stores that can offer bargains. But because small retailers cannot win price wars, they need to leverage their biggest advantage over the chains. Small stores owners are aware that personal relationships with customers and the ability to deliver superior service remains one strategy that keeps businesses thriving. This strategy has been the secret of many successful retail business over the years.”

    As shoppers become more value focused, some are turning toward big-box retailers. Therefore, the small ones can bolster sales by targeting wealthier shoppers who are less price-sensitive and may pay premiums for better service. Upper-income households often perceive value in different ways from lower-income shoppers, Shopeju added.

    Independent retailers who are willing to survive the recession, experts have advised, need to court their best customers in the market they are targeting. Maximising the one-on-one relationships  with customers is also a major factor. And one way to do that, they said, is through affinity discounts that encourage loyal customers spend more, rather than trying to attract new business by cutting prices across the board.

    Going to customer base and mailing out to their best customers this they argue it’s a lot smarter than putting a 70 per cent off sign in front of one’s store.

    Experts also advised that through affinity programmes, retailers can strengthen their relationships with their best customers and appeal to those shoppers’ bargain-hunting at the same time. Beyond customer service, they said retailers should keep inventories lean to reduce costs  and be vigilant in refusing late orders as well as watching for over shipments to avoid having merchandise they would not be able to sell.

    In addition, small retailers can take a cue from large chains that display as much merchandise as possible on the floor, rather than holding inventory in the stockroom.

    Likewise, stores should watch their staff levels to control costs. They want to staff to the peak hours as much as they can. That means mostly in evenings and weekends, as most two-income families have little time to shop during the day. Businesses might decide to open later in the morning and extend hours at night to reach more customers without needing to staff more hours.

    Marketing companies are experimenting with new digital technologies to pitch to consumers while they shop. These include interactive dressing-room mirrors, kiosks with virtual customer-service representatives, shopping carts and digital scanners that offer personalised discounts.

    The experts also noted innovative ways for marketers to connect with customers as part of efforts to better understand what consumers buy and to encourage companies to rethink their approaches to their roles.

    However, for retailers grappling with lacklustre sales and consumers, who are dissatisfied with say online shopping with its related interactivity becoming mainstream, retail experts have advised retailers to continue to explore investment opportunities that can drive traffic to their outlets.

    They said there were strategies for retail businesses to survive in harsh economies, such as having a short-term tactical approach to improve performance and increase efficiencies that will drive sales, as well as medium to longer term strategic choices that will deliver sustainable and incremental growth.

    Location of the stores and product category are strategies which they think the retail giants always take into consideration.

    Citing Shoprite, they said the retailer has always been about the customers and has continued with its CSR initiatives and customer loyalty regardless of the recession.

    The proximity to any Shoprite store, they said, had made shopping  convenient for customers, noting that about 80 percent of the goods on the shelves are indigenous.

    Lending credence to the issue, the Business Development Manager of Chastest Consult, Ini Archibong, who is the Public Relations (PR) Consultant to Shoprite, noted that the monthly in-house and online competition in which lots of shopping voucher is given away among other loyalty programmes, are some of the time-tested principles that is working for the big retail stores like Shoprite.

    For the  Executive, Director Polo Luxury Group, Jennifer Obayuwana, despite the recession, excellent customer service remains a top priority at Polo Luxury.

    “Arguably, the recession is making shoppers of luxury goods look inward to what is available locally as shoppers save on flight fare. This is excellent for the Polo Luxury brand as it sticks to quality and authentic goods. Customers do not have to spend the extra travel fare, yet are accessible to the same quality of products and after-sales care they would have abroad at home.”

  • Schneider rewards retailers

    Schneider rewards retailers

    Schneider Electric has launched in Lagos a range of electrical distribution boards, switches, sockets, and mobile solar solutions into the market.

    According to the company,the launch reinforced its commitment to producing world-class electrical appliances to impact positively on its customers.

    At the event, winners in the ‘Low Voltage Product Resellers campaign were rewarded.’ The prizes include a trip to France and a ticket to watch the semi–final match of the Euro championships taking place in France, which was won by Ortho Chibuzz International Limited.

    The second place winner – a trip to France went to E. E. Obilly Wise International Company while the third place winner, Zomak Electrical Company Limited, received a 52-inch Samsung television.

    The Partner Vice President, Schneider Electric, Mr. Ahmed Fateen, noted that Schneider Electric’s customers have various high quality switches and sockets to choose from at affordable prices.

    “At Schneider Electric, we just don’t ask our customers for feedbacks, our research and development (R&D) and subsequent new products are based on these feedbacks.

    “Our customers wanted high quality electrical distribution boards, sockets and switches with sleek functional and aesthetic designs. We heard them and today, we are launching these products that meet those specifications. It just goes to show that Schneider Electric remains committed to our  market,” he said.

    The Country President, Schneider Electric Nigeria, Mr. Walid Sheta, said: “We are in business today because of our retailers and we are happy that we are keeping our promises of constantly innovating safe, efficient and reliable products that will meet the needs of our ever growing customers. They bank on us for quality products and we are happy to deliver.”

    Responding on behalf of the winners, the CEO of Ortho Chibuzz International Limited, Mr. Chibunna Anazodo, noted that the new products attest to Schneider Electric’s commitment to quality and value for money.

    He thanked Schneider Electric’s management for looking for ways to improve its distribution channels.

  • Why rice is expensive, by retailers

    Rice dealers have attributed the scarcity of the commodity to the activities of importers who hoard the product.

    A acording to market surveys, a 50kg bag of rice that hitherto sold for N9,000, now sells for between N15,000 and N17,000. There are concerns that prices could rise with yesterday’s  fuel price increase.

    Retailers have blamed the rising price on the ban of the importation of the commodity through the land borders, as the activities of a few importers  alleged to have stockpiled the commodity in anticipation of the closure of land borders. Since the importers got their Form M approved last year, they allegedly began a masive stockpiling of the commodity.

    As soon as the ban was announced, they allegedly took over the  market with their brands of rice and started dictating the price to the detriment of the poor masses.

    They alleged that the importers are now selling the stockpiled rice at cut-throat prices.  A  trader, Dupe John, said: “Rice, being Nigeria’s number one staple food, it’s not good for a few people to monopolise the market, especially when we are yet to be self-sufficient in local production.

    They also linked the scarcity to the absence of other  brands.  “The absence of other brands in the market is the reason we have artificial scarcity and high cost of rice due to shortfall in supply. While these few importers are smiling to the banks, Nigerians are suffering,” the trader said.

    Another trader, Richard Okonkwo said: “Before we talk of banning importation, we must increase local production to avoid food scarcity.“

    To  make the matter worse, the retailers insisted that only the brands brought in by  the few importers,  are  allowed  into  the market.

    The retailers also alleged that men of the Nigeria Customs Service (NCS) are seizing other brands except those of the importers.

    For instance, they alleged that on March 23, 24 trucks of rice were seized in Owerri from innocent local traders who came to Lagos to buy rice simply because it was not one of those brands. Similar seizures were also made in Lagos by men of the NCS from Ikeja.

    The retailers also alleged that traders are afraid to buy rice from distributors except the few brands, for fear of their goods being impounded.

    The traders are asking the government to urgently intervene in the rising cost of rice which they project may go as high as N25,000 in December if it is still left in the hands of few individuals.

    The ban on importation of rice through land borders is said to be encouraging undocumented cross border rice trade.

  • How small retailers lure shoppers

    In their quest to carve a niche for themselves, many small retailers out there have devised ingenious means and ways of getting and retaining customers, reports TONIA ‘DIYAN 

    For many startups in the retail business, the fear of competition from the bigger retail outlets is real.  Usually, the comments you hear often, range from,  “the big stores are taking over the small ones; how will I cope when the bullish stores have everything it takes to run the business, including sourcing for products at the cheapest possible rates.’’

    It is true that as shoppers become more value focused, they turn towards big-box retailers thereby making small retailers boost sales by targeting wealthier shoppers who are less price-sensitive and are willing to pay premiums for better service. Findings have shown that upper-income households often display unique perception of value than lower-income shoppers.

    But thankfully, some small retailers have since found answers to some of these worries by employing time-tested and simple success strategies.

    Success strategies that work

    As small retailers, they really cannot win price wars against the bigger chain stores. But what they need to leverage on over the chains, is  personal relationships with customers and the ability to deliver superior service. These and many more are some of the secrets of many successful retail businesses over the years.

    Alhaji Rabiu, Chief Executive Officer, Brazilian Jewelries Store, who has been involved in the retail trade over the years, shares his perspective.

    Waxing philosophical, he said, the best way to woo and retain customers is to constantly be in their mind.

    “If as a retailer, I am savvy and communicate well with my customers, I can draw them into my store before they go into the national chains. One way to do that is through attractive discounts and cutting-edge  prices across board, this for sure, will encourage loyal customers to spend more. That is a lot smarter than putting a 70 per cent off sign in front of my store,” he said.

    For independent retailers to compete with their larger counterparts in whatever market they are targeting, retail experts’ advice small retailers to encourage their best customers, maximise the one-on-one personal relationships that they have with customers, saying it is the secret weapon they have against big national chains.

    Through attractive programmes, experts say retailers can strengthen their relationships with their best customers, and as well appeal to those shoppers’ bargain-hunting mood at the same time.

    Beyond customer service, experts say small retailers need to keep inventories lean to keep costs down. They say it is important that these small store owners are vigilant in refusing late orders and that they should avoid over-shipments to avoid having merchandise they would not be able to sell.

    In addition,  small retailers have been advised to take a cue from large chains that display as much merchandise as possible, by displaying theirs on the shop-floor, rather than holding inventory in the stockroom. This expert advice will increase their advertising spending, though to a smaller extent. Many small stores now cater for more affluent customers which will make them do better.

    Small stores have also been advised to watch their staffing levels to control costs. They should adopt the strategy to staff to the peak hours as much as they can, especially in the evenings and at weekends, as most busy families have little time to shop during the day. Businesses, experts advise, might decide to open earlier in the morning and extend hours at night to reach more customers, unlike the big retailer who has opening and closing time.

    Big retail stores slash prices and increase advertising budgets whenever sales are low. But many small retailers without the same financial muscle are stepping up efforts within the limit of their resources to attract customers.

    Analysts have maintained that the existence of the informal retail sector would not be threatened by market circumstance, but rather, operators would bring in innovations to retain their market share.

    They have also presumed a situation where the small shops will sustain their dominance with the ability to offer lower prices than the big shops who have invested much to achieve international standard. And these are already playing out.

    An expert on retail practices, Ivan Friedman, once said: “The ability of small stores to react quickly and directly to customers may be one of the most effective weapons they have. They can easily determine what is selling, and then place orders without wading through a cumbersome bureaucracy. They don’t have to go to the corporate office, wait for their request to be analysed and then ship to them.” There is need to stress the fact that “small shops” and “big shops” are rather indistinct and that the classification of a unit of business as big or small is different in different places and has changed significantly with the passing of time.

    Big retailers suffer from high operational costs. However, the illegality of the operations of the small shops puts modern grocery retailers at a distinct disadvantage. Modern retailers have higher fixed costs; they cannot easily evade taxes because of their visibility and they have to source their supplies from legitimate channels.

    Analysts have maintained that the existence of the informal retail sector would not be threatened by market circumstance, but rather, operators would bring in innovations to retain their market share. They have also presumed a situation where the small shops will sustain their dominance with the ability to offer lower prices than the big shops who have invested much to achieve international standard. And these are already playing out.

  • DPR begins licensing of cooking gas retailers

    As part of measures to reduce frequent cases of cooking gas accidents, the Department of Petroleum Resources (DPR) has commenced the process of licensing cooking gas retailers.

    The move, according to the President of Liquefied Petroleum Gas Retailers (LPGAR), Association, Mr. Michael Umudu, was also aimed at ridding the sector of quacks and unlicensed professionals.

    Umudu stated this at a safety awareness campaign organised by the Lagos chapter of LPGAR in Lagos state. He said the high rate of cooking gas accidents across the country remained a cause for concern to the association, hence, the decision of the DPR.

    He said the safety awareness campaign was put together by the association to equip its members ahead of the licensing exercise by DPR while also building members’ capacity to be in tune with latest safety trends. The awareness programme, he said, was in line with Health Safety and Environment (HSE) practice in Nigeria’s oil and gas industry.

    The Chairman, Lagos chapter of LPGAR, Mr. David Okenwa said the training had become imperative in view of the growing demand for cooking gas as an alternative to kerosene and firewood. Okenwa said: “Many of our members don’t know much about the safety aspect of this business. That is why we engaged a consultant who will train them on the safety aspect because there are cases of related to gas hazards in the country.

    “As an association, we have deemed it fit to bring our members to the classroom to widen the scope of their knowledge base so that they will be more careful when carrying out their duty.”  He warned that any member found wanting in any fire incident related case after the training, will be dealt with according to the rules governing the association.

    The Managing Director of Crownbondis Global Resources Nigeria, an HSE consultant, Mr. Adebiyi Adewale, said gas retailers as the last link, must be adequately equipped with the knowledge of safety handling of gas in order to reduce the cases of gas accidents.

    Safety tips given to retailers during the training included how to transfer LPG from bigger cylinders to smaller ones, proper kits to use; checking expiring date of cylinders; how to check for leakages, and the consequences of not adhering to safety standards.

  • Retailers introduce flexible payment options

    Retailers introduce flexible payment options

    Do you love to buy and pay later or installmentally? There are provisions for such as dealers and distributors of electronics take the lead in flexible payment options for shoppers, TONIA ‘DIYAN reports

    Findings have revealed that flexible payment options established by product manufacturers, particularly electronics dealers, satisfy the customer’s urge for his or her dream product at a time when cash to pay for the item is not readily available.

    Electronics merchants and dealers in household items admitted that beyond their aim of satisfying customers and making life comfortable for them, the flexible payment option is one of their many strategies to push sales, create space for new stock and encourage shoppers to patronise a particular brand or shop.

    In other words, flexible payment options or installmental payment, they said, is a welcome development in retail business.

    In today’s world where electronics have become a part of life, particularly for women who use them to ease the stress of home chores, the unfriendly prices of the items have become a challenge. However, buyers can now buy electronics of their choices, regardless of financial status.

    The payment system allows the buyer to pay for goods in instalments. Dealers see the option as a way of ensuring patronage.

    According to them, there ae procedures to be followed to benefit from the service. Most of the time, they require sureties from the buyers to assure the dealer of their ability to pay within specified time.

    The Nation Shopping spoke with the manager of ‘Up and Best Electronics’, a distributor of LG electronics, at Ojuelegba, who pleaded anonymity. He listed the processes a buyer has to go through before he or she could become a beneficiary of the deal.

    He said: “There are three procedures. First, I would contact the workplace of the buyer and get a Memorandum of Understanding (MoU) from the company. This is like a social agreement that would be signed by the company and I.”

    He added that the first step means that the dealer has began a contract with the buyer’s company.

    “After they have consented to my selling an item to the person involved, they would begin to deduct my money from the person’s salary. If the buyer decides to leave the company during the payment period, my money would be deducted from his entitlement before it is eventually given to him,” the manager said.

    On the second process, the LG distributor explained: “The buyer will have to get a surety, who would be made to pay the money to me should in case the buyer refuses to keep to our agreement. An agreement form is signed by the surety, whom the liability rest upon.

    “For the third payment plan, the person comes directly to me to purchase and pay upfront for the goods. I will keep the products in my shop until full payment is made.  But when a company is involved, an individual can go with the item bought. “

    The Manager of Joetex Electronics, Mr. Joseph Okorie, also a dealer in LG products, said he preferred to deal with buyers directly.

    “I prefer to deal directly with an individual and let him enjoy buying. I use receipts as evidence of transaction and to keep record of the initial payment made. I do not give duration for payment but allow people pay at their convenience,” Okorie said.

    Binolex Electronics located at Onipan in Lagos said they allowed installment payments for a maximum period of three months. During the period, buyers can pay three times. But a buyer must pay 40 per cent of product’s original price. Explaining how the shop is able to trust customers to pay for goods, a sales attendant at the shop said: “I do not give the goods out until complete payment is made. I issue invoice for subsequent payments, retract previous payments and give updated invoice till full payment is made.”

    Mrs. Biodun Layo of Biodun Layo Electronics at Gbagada, a dealer in Binatone electronics, said she offered flexible payment plans for customers on the basis that they pay 50 per cent for item purchased first before installmental payment begins for as many times as possible within three months.

    Mr. Benjamin of DonaBen Electronics, another LG dealer at Ijesha in Lagos, said he did not give duration for payment. But he allowed the buyer to pay when he could afford. He added that should in case the price of the item increase after agreement has been reached on price, it would not affect how much the buyer would pay.

    The flexible payment plan is also beneficial to banks. Many dealers in Samsung and LG electronics explained that they only give the offer to banks because cheques must not bounce and because banks have the ability to offer advanced cheques.

    A source told The Nation Shopping that LG only offer the flexible system plan to selected banks like Skye Bank, Zenith Bank, FirstBank, Union Bank and Access Bank.

    Samsung dealers said banks handle the installmental processes for them and customers who engage in this payment plan were able to enjoy luxury no matter how bad the economy was, because they were investing in something worthwhile.