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Nairaland Forum / Nairaland / General / Business / How Subsidy Removal Is Affecting Small Businesses: My Experience (687 Views)
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How Subsidy Removal Is Affecting Small Businesses: My Experience by Kukutenla: 3:04pm On Jun 27, 2023 |
I got back from work yesterday and my wife reminded me of something she asked me to buy for her which i forgot to. So, I had to go out to help her get it since she needed it that night. Since i had been driving all day, I decided to board a bike to buy the stuff in the neighborhood. The bike man I stopped agreed to take me to the first shop for 100naira. But on getting to the shop, they did not have the stuff, so I asked the bike to take me to another shop at cost of another 100naira. I got the stuff there and, on taking me back home, the bike man stopped to buy fuel. He bought 1 liter at 600naira and dropped me at my house. I paid him the total sum of 400naira. He appreciated the gesture because he knew ordinarily, the return journey shouldn't be more than 150 to make a total sum of 350naira. I then began to do a mental comparison of the total cost to revenue of the bike man pre and post subsidy removal. Before subsidy removal, he would have bought the fuel at 220 per liter and collected 50 for the first point, 50 for the second point as well and 100 for the third point making a total of 200. With that, he would have had a total loss of 20naira. But with removal of subsidy, even at 400 income, he still has a shortfall of 200naira to battle with. Thus, the bike man is worse off than he was before subsidy was removed by over 100points. This justifies my earlier point that the poor benefit from subsidy more than politicians and their propagandists will have us believe. cc: nairalanda1 3 Likes |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Zonefree(m): 3:07pm On Jun 27, 2023 |
I want to believe your wife is pregnant...right? 3 Likes |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Kukutenla: 3:09pm On Jun 27, 2023 |
Zonefree: Lol. No. Why ask? |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Zonefree(m): 3:11pm On Jun 27, 2023 |
Kukutenla:She's not pregnant and she's not disabled, why can't she go get the things she needed by herself? 5 Likes 1 Share |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Immatex(m): 3:22pm On Jun 27, 2023 |
For a fact, subsidy was the only national cake that went round. Everyone benefited from it and enjoyed it! 1 Like |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by nairalanda1(m): 3:26pm On Jun 27, 2023 |
Kukutenla: Sorry, I don't read tales by moonlight. Face year front, master Smith |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Kukutenla: 3:48pm On Jun 27, 2023 |
Zonefree:First, you assumed she's not disabled. That's poor imagination on your part. Second, I really don't see how it is any of your business how a man and his wife choose to live. 8 Likes 1 Share |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Kukutenla: 3:49pm On Jun 27, 2023 |
nairalanda1: Since it is not propaganda from the stable of your paymasters eh? Uncle Tom 1 Like |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by nairalanda1(m): 3:51pm On Jun 27, 2023 |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Kukutenla: 3:58pm On Jun 27, 2023 |
nairalanda1:Nerve? Do you even know what that means? Zombies got no nerve And only Zombies ask for more suffering to enrich a few 3 Likes |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Rajahbite(m): 4:14pm On Jun 27, 2023 |
By your assumptions, you imply that the bike man used one litre of fuel to ferry only you. You can never tell how much he will make from a single litre of fuel bro. |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by GodWrites: 4:23pm On Jun 27, 2023 |
Your conclusion is confusing. You mean the poor benefit from subsidy more than politicians? |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by vastolord4(m): 4:27pm On Jun 27, 2023 |
Rajahbite: Didn't you read where he said the first shop didn't have what he came for? It's not just about the bike man.. medium scale shop owners can't restock because they can't rebuy them, cost of things have almost doubled in price.. do you get? That's what people are complaining about! Things in the market are expensive. But people that eat in their parent's home or people that leech others won't know this!.. |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Kukutenla: 5:07pm On Jun 27, 2023 |
Rajahbite: That's not my assumption. You're mistaken. The one liter will still cover the same mileage whether he buys it for 220 or 600. What I'm pointing out is his cost of doing that business as increased by 200 folds as a result of the fact that he has to buy fuel, which is the main input of his job for thrice the price. This implies that to break even, he has to work thrice as hard as he used to. With the previous price, taking me on that round alone has covered his cost of business. But with the present price, that same round has not even covered half of his cost of business which means, he has to work more to break even and get less the profit he used to get. |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Kukutenla: 5:10pm On Jun 27, 2023 |
GodWrites:My conclusion is that the poor benefit from subsidy. Whether at a scale higher than the politicians, i cannot say because i don't have the facts of how politicians benefit like i did for the bike man. This is at variance with the prevailing propaganda that it is only big men with big cars that benefit from subsidy since the poor don't own cars. |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Rajahbite(m): 9:34am On Jun 28, 2023 |
Kukutenla:Nope,he doesn't need to work thrice as hard as before. Considering the input in the line of rendering his services,he only needs to up the fare by 300% |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Rajahbite(m): 9:38am On Jun 28, 2023 |
vastolord4:Back in the 80s and 90s during the oil boom, not every shop always had in stock all the commodities at the same time. |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Kukutenla: 11:26am On Jun 28, 2023 |
Rajahbite:Another 300% after an increase of 100%. Are you kidding or joking? |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Aurelius1(m): 12:52pm On Jun 28, 2023 |
Kukutenla:In essence, what you're saying is that subsidy affects the poor because cost of running petty businesses that are dependent on petrol has increased and to meet up they have to pass on the burden to customers. |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by vastolord4(m): 1:06pm On Jun 28, 2023 |
Rajahbite: for you to go to a store shows you know exactly what you want from there is there?? Eg going to a mallams shop to get sweets?? Cos you know he should have sweets at least |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Kukutenla: 1:09pm On Jun 28, 2023 |
Aurelius1:Yeah. And even at that, they still don't make what they used to. The subsidy removal increases their cost of doing business while reducing their profit margin 2 Likes |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Rajahbite(m): 3:05pm On Jun 28, 2023 |
vastolord4:Don't tell me you have never been to a shop you buy a particular article only to be told it's been sold out and they need to restock? |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Rajahbite(m): 3:07pm On Jun 28, 2023 |
Kukutenla:100% increase in fare won't solve his problems because the increase in fuel is already more than 200% |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by Kukutenla: 3:17pm On Jun 28, 2023 |
Rajahbite: Well, the fact is that at 300% increase in price, he runs the risk of losing customers as some people will prefer to walk that distance or just stay put when they can. That will negatively affect is daily income then and in the long run, his revenue |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by vastolord4(m): 5:34pm On Jun 28, 2023 |
Rajahbite: No restocking this time around cos retailers can't afford it with the current price increase.. retailers now select particular items to buy and sell (goods that are bought steadily) so common items like insecticides and body deodorants are only bought in the bigget markets |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by twilightdreams: 11:48am On Jul 05, 2023 |
Zonefree: Are you talking about the women in your life Anyway are you still having romantic feelings for me even as things will not be better for you and everyone related to you 😂 |
Re: How Subsidy Removal Is Affecting Small Businesses: My Experience by twilightdreams: 12:15pm On Jul 05, 2023 |
Zonefree: 🤣🤣🤣🤣🤣 Aren't you interested in talking to me anymore you foolish fellow You don't want to see my nákedness no more Send that PM you've been dying to send like the sex-starved thirsty dog that you are |
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