Price regulation

Some weeks back, I lamented in an article how painful it has been for me regarding the service I render and how the price of the service is no longer matching the input, especially the monetary input — yet I can’t increase the price.

Why I find it difficult to increase the price
Although the price of the service( per portion) is not officially regulated by any group or union, the price is determined by customers’ expectations and the gradual increase in the cost of living.
I wanted to increase the price of my service but then, if I do, there’s a tendency of losing customers no matter how I try to explain it to them. As long as other similar businesses around are still operating with the known price, increasing mine would mean chasing my customers away — and that’s very natural.

I was so concerned that I decided to check my input cost, especially the amount I spend on fuel. It’s extremely high, considering that we no longer have general electricity as we used to some months ago. I went on to meet one of the people doing the same business around me to see if they were going through the same challenge and have had the urge to increase prices. And yes, the person I met is also facing the same challenge but dares not to increase prices because his clients would leave him for others. So, the only solution left is to form a union, which the person suggested, to regulate prices so that even if there’s an increase, it will be general.

But hey, I’m not really a union person. I frown at it a lot because of the unnecessary meetings, the payment of dues, and other commitments. No, no — that doesn’t excite me at all. Although I agreed to join when it eventually starts, I know I’m double-minded about it.

Should business owners be allowed to inflate or reduce prices?
A non–business owner would answer a loud “NO” to this, while business owners will say prices should be increased or reduced at their discretion.
Yes, prices should be moderated by business owners but also checked by price control agencies in the country. No doubt, business owners can decide to increase prices exorbitantly to enrich their bank accounts at the expense of their customers — which is not supposed to be so. There should be a limit to how prices are placed at regular intervals, and that’s where the price control agencies need to step in. Unfortunately, these agencies are only concerned with more general products such as petroleum.

Or have you seen the price control agencies checking the price it fruit tomatoes in the market? No.

But in small businesses, a union controlling and regulating the price is the best option because, with this, proper considerations will be put in place.

Just at the time I was about to type this, I read a lamentation post on Facebook about the high cost of flights within Africa. The airlines are unionized and have their flight rates controlled, but then, the increase has been alarming. Yet they can’t be questioned ultimately because the increment is measured with the high cost of living too.

Thanks for reading.

This is my entry to Week 188, Edition 01 of the Weekly Featured contest in Hive Learners Community

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