Prime
Attract future sales through Black Friday - SMEs advised
What you need to know:
- Minimal discounts. On Black Friday, some products are only slightly discounted and maintain their usual price range.
Kampala. It is dark outside, crickets sounding, cars making their way out of the town while a storm grows in the Lugogo Game Supermarket.
Ordinarily, shoppers camp out in preparation of Black Friday to grab the best deals on discounted products.
The supermarkets this year have changed working hours, opening earlier than usual to make shopping convenient for customers.
While Game supermarket Lugogo will open at midnight on Friday (today), Shoprite Lugogo has adjusted its working hours from 7a.m to 10p.m today.
However, online platform Jumia Uganda’s Black Friday started last week stretching to December 7.
Black Friday is an imported culture from the western world where goods are sold at highly discounted rates at the end of November usually as a way of thanksgiving. While Black Friday is all about the discounts, some products are only slightly discounted consequently maintaining their usual price range.
According to Mr Neville Igasira, the chief marketing officer Jumia Uganda, prices on Black Friday are determined by suppliers mainly.
Explaining the difference in prices, Mr Igasira says some products such as laptops cannot go lower than a particular threshold. However, phones, televisions and appliances are heavily discounted.
“Because of the influx in phones, it becomes easier for suppliers to reduce the price,” he explains.
Gains
Black Friday should not be left to Jumia and the large supermarket chain stores alone. You too as Small and Medium Enterprises (SMEs) can leverage on partnerships such as Jumia to sell your products.
It is difficult, Mr Igasira says for businesses to agree to discounted prices especially SMEs.
He admits that larger enterprises because of the economies of scale, have added advantage compared to SMEs in regards to ease in reducing prices.
“Businesses that reduce these prices focus mainly on the volumes. If you can sell a Shs1m product at Shs850,000, with black Friday you sell more volumes earning you more money,” he says.
Blue Flame has been supplying Jumia for about three years. Mr Muhammad Baluku, head of field marketing Blue Flame, says the company has only supplied goods twice purposely for Black Friday.
During this period, the company records good sales and anticipates future sales based on referrals. “We supply them to give back to our customers because sometimes it is the capital cost price,” he explains.
