Naga entrepreneurs and the art of pricing

Vizoto Tsükrü
Dimapur, Sep. 28 (EMN): Amid motivation from various quarters to build a strong entrepreneurial ecosystem to address unemployment problem and boost the state’s economy, Nagaland is witnessing an increase in the number of startups, several of which were recognised by the Centre this year, and many youth starting businesses of their own of late.

However, traders who have been successfully running business for years in Dimapur, said the new entrants, especially Nagas who are relatively new to the sector, should work on acquiring market knowledge and avoid over-pricing of products, which affects the sales volume, to survive the stiff competition.

Basudhar, who has been running a successful business for about 50 years now, told Eastern Mirror that traders in Dimapur fix prices for their goods based on each individual’s market strategy as items are imported from various places.

The 63-year-old businessman said that interpersonal skills and ensuring customers’ satisfaction are important in sustaining business besides having market knowledge.

‘It is important to sell goods at a lower price to the customers at times when the business is at a profitable stage for sustaining a long-term plan,’ he shared.

‘I import goods from Delhi and Kolkata, sell them to my customers at a 10-20% profit margin. At times, I also narrow down the rates to the cost price of the product to sell off my remaining unsold goods as it is an unpredictable business where there is both profit and loss,’ he added.

Most Naga sellers, he said, are women who usually quit due to their responsibilities at home or due to lack of knowledge or skills.

He also opined that many locals fail in business as most of them employ ‘inexperienced’ individuals to run their business while the non-local traders run their own shops.

Joynal Ahmed, 38, is of the opinion that many Nagas fail in business due to lack of experience and knowledge about the market, as well as the tendency to make big profit margin. While maintaining that he gets an average profit of 10-15% per item he sells, he claimed Nagas might sell the same product at 30% profit.

Meanwhile, another trader, Ajay, 48, pointed out that many Naga business persons quit the profession early because of “change of interest”.

Price and demand

‘To run a successful business, understanding the nature of the customers and knowing your competitors will prove great. Always keep an update on the rates of your competitor as customers tend to go to where the price is low,’ said Deepa, 45.

Peter, 35, who started his own business this year, said that the imbalance in market prices and lack of patience and dedication are not working in favour of Naga entrepreneurs.

‘Most of the amateurs in the business quit even before completing a year. They step in not knowing anything about business,’ he said, adding that traders should know their customers’ preference and set up their market strategy accordingly for the business to flourish in the long run.

Lucy, 30, who has been in the business sector for five years, said that goods imported from Bangkok are cheaper than those from China. Thus, the pricing of goods depends on the wholesale price, which most consumers fail to understand, she added.

However, she said ‘there’s no denying that people often compare the rates of the locals and non-locals as some of them do sell at a very high rate with a huge profit margin’.

‘For instance, if a piece of clothing which cost INR 500 is sold at INR 1000-1400, it will not only affect the individual alone but also other local sellers, resulting in the decline of customers,’ she said, adding that the mindset to earn big right from the initial stage doesn’t help in the long run.

Meanwhile, Bandar Udin, a 24-year-old businessman, said that Nagas are flourishing in online marketing, which non-locals are lagging due to lack of knowledge, education and ideas to access such platforms.

However, he opined that Naga traders should know what their customers want and set the price of their items reasonably especially during the growing stage of their business in order to sustain and survive the competition.