Have you ever wondered why some food items are way more expensive than what you think they are worth? Perhaps, you wanted to purchase something – let’s say – online, then you see the price and you are like “what!😱”. I bet that is something we all can relate with, especially when a product is smaller than others and sold at a higher price. It’s easy to think you have been cheated because to you, the item you want to purchase is overpriced.
So, this article is on the rising cost of food in Nigeria and a reveal on why some products are more expensive than others and how you can maximize your budget to get the best.
Hoarding by Middle Men
The prices of food can be affected when wholesalers or distributors purchase and warehouse large quantities of a commodity with the intent of benefiting from the increase in future prices.
Insecurity (Banditry/ Boko Haram)
There is nothing that destabilizes the economy and food distribution of a nation than insecurity. You will need to consider the origin of the food you are purchasing. Any food item that has to travel from one state or region to another might get to you with an increased price.
Production cost is the amount of money used to produce the item. In the case of food, the production cost will include all expenses acquired from the point processing starts to the end of production.
Seasonal differences in the cost of food occur frequently. Food items always cost less in the season because they are plenty, so the supply becomes higher than the demand. When the market supply of a commodity increases, the price of that commodity falls. Food items that are out of season become scarce and will make the prices increase.
Demand for item
Another thing to consider is the demand for a product compared to the supply of that product. Usually, when many people want a particular item, its price increases.
These are ways in which manufacturers and sellers tell us they have certain goods and services for sale. Advertisements cost money. The cost of advertising a product is added to the production cost to make up the price of a product. The more the advert, the higher the cost of the product.
Amount of processing
Processing adds value to products that cost money. Foods that are processed to provide conveniences cost more than unprocessed ones. We can not only determine the price of an item by size. The amount of work put into that item will be the judge of that.
Do you now see why these factors affect the cost of some products? Having learnt about these, how would you buy your commodities?
You can visit our store to get your favourite food product at the best pocket-friendly prices. Cheers!!!