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Kadogo Economy !! rip off
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kiash
#1 Posted : Friday, January 10, 2014 2:45:17 PM
Rank: Veteran


Joined: 4/27/2010
Posts: 951
Location: Nyumbani
How are people lend to think this is economical ? I do not have the prices of say Blue band za sachet, and everything else meant for the low income earners. This is pure rip off I would say wait for 5 days kunywa strungi and then get a packet of milk boil and keep it for 3 days .

http://www.businessdaily...2/-/8w89lr/-/index.html

This 100ml packet for 15 sh -> 1 litre would go for 150 sh ; the same milk is bought from farmers for 30sh

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Gordon Gekko
#2 Posted : Friday, January 10, 2014 3:41:16 PM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
If you buy a stock of food and keep it in your shanty house, it might be stolen by the neighbour who peeps through the hole in the mabati wall, the house might be razed down by the landlord who wants to throw you out so as to increase the rent, your jobless brother who shares the hovel with you might consume it since you left nothing for lunch when you left for kibarua in industrial area.

Please spend some time in the slums to appreciate how your fellow kenyans live. I have, both in Kibera and Mathare 4A.
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sheri
#3 Posted : Friday, January 10, 2014 4:05:03 PM
Rank: Member


Joined: 4/11/2007
Posts: 694
kiash wrote:
How are people lend to think this is economical ? I do not have the prices of say Blue band za sachet, and everything else meant for the low income earners. This is pure rip off I would say wait for 5 days kunywa strungi and then get a packet of milk boil and keep it for 3 days .

http://www.businessdaily...2/-/8w89lr/-/index.html

This 100ml packet for 15 sh -> 1 litre would go for 150 sh ; the same milk is bought from farmers for 30sh


@ Kiash majuu imekuharibu.Things are very tight for some people but thanks to kadogo economy they can take tea with milk or buy cooking oil worth 10 bob. Get it!
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Prime
#4 Posted : Sunday, January 12, 2014 1:18:16 PM
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Joined: 2/27/2011
Posts: 518
I think Kiash is very right... Almost everyone in kenya likes it cheap. Cheap must be weighed against something for it to make sense. Why would someone but 5 very finely chopped peaces of meat along with their Githeri and pay an extra 20 bob or 30 bob because it is githeri special and not githeri plain? Why would someone buy sugar in spoons day in day out whereas it would be much cheaper to just purchase quarter a KG? Why would someone pick one car over the other just on the basis of price and in total disregard of all other factors? In MY (note that) opinion, sometimes one needs to see the bigger picture. Sometimes that is what it take to get out or rat race.
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bkismat
#5 Posted : Monday, January 13, 2014 9:46:54 AM
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Joined: 10/23/2009
Posts: 2,375
Prime wrote:
I think Kiash is very right... Almost everyone in kenya likes it cheap. Cheap must be weighed against something for it to make sense. Why would someone but 5 very finely chopped peaces of meat along with their Githeri and pay an extra 20 bob or 30 bob because it is githeri special and not githeri plain? Why would someone buy sugar in spoons day in day out whereas it would be much cheaper to just purchase quarter a KG? Why would someone pick one car over the other just on the basis of price and in total disregard of all other factors? In MY (note that) opinion, sometimes one needs to see the bigger picture. Sometimes that is what it take to get out or rat race.

@ Prime some of these people have no other option as they live from hand to mouth. If for example you earn Ksh 150 per day and you want to divide this between unga, veges, meat etc what would you do?Thats why the kadogo industry is thriving.
It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
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Lolest!
#6 Posted : Monday, January 13, 2014 10:18:00 AM
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Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
The kadogo economy is a rip off? Everything sold in small bundles is expensive. Compare prices of consumables like soap and flour from supermarkets(cheapest retailers) with prices of wholesalers. In supply chain, it's called breaking the bulk...
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McReggae
#7 Posted : Monday, January 13, 2014 10:37:27 AM
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Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
Lolest! wrote:
The kadogo economy is a rip off? Everything sold in small bundles is expensive. Compare prices of consumables like soap and flour from supermarkets(cheapest retailers) with prices of wholesalers. In supply chain, it's called breaking the bulk...


Packaging stuff in small quanties is always more expensive hence you got to pay more for the same, some of these folks only want the colour of the team to change, they wanna feel like any other person, tembea hukp ujionee!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Obi 1 Kanobi
#8 Posted : Monday, January 13, 2014 11:10:28 AM
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Joined: 7/23/2008
Posts: 3,017
The kadogo economy is driven by the amount of income one has, the market for the 15 shilling packet are the kenyans with the a breakfast budget of Sh 30 - 50 (depending on family size). You buy the milk and add to water regardless of dilution to make tea, you then buy sugar, majani and accompaniments (ndazi, kangumu or chapo) with the difference.

And then mguu mpaka inda.

The only challenge this sh 15 packet will have to contend with is the milk hawkers. I bet the hawkers are already offering a better deal.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Lolest!
#9 Posted : Monday, January 13, 2014 12:23:21 PM
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Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
McReggae wrote:
Lolest! wrote:
The kadogo economy is a rip off? Everything sold in small bundles is expensive. Compare prices of consumables like soap and flour from supermarkets(cheapest retailers) with prices of wholesalers. In supply chain, it's called breaking the bulk...


Packaging stuff in small quanties is always more expensive hence you got to pay more for the same, some of these folks only want the colour of the team to change, they wanna feel like any other person, tembea hukp ujionee!!!

exactly!
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kiash
#10 Posted : Monday, January 13, 2014 1:26:57 PM
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Joined: 4/27/2010
Posts: 951
Location: Nyumbani
But at the end of the day (month) these guys end up spending more than double what the normal folks would spend.
@Sheri there is nothing like majuu kuharibu there are people who wait for sale or go for distances just to buy stuff in bulk so as to save some few coins.
At one time or another i think one needs to do some sacrifice to enjoy something else another day.If this guy buys a packet of 500ML and drinks 100ml per day,he will spend sijui 45sh.If he decides to be doing it daily,for 5 days for the same quantity he will spend 75sh
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Mkimwa
#11 Posted : Monday, January 13, 2014 1:34:30 PM
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Storing the 500ml for 5 days will require a fridge.. which is a luxury item.

Living hand to mouth is always expensive. People in slums buy and cook with paraffin, while cooking with gas is much cheaper.
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bkismat
#12 Posted : Monday, January 13, 2014 2:47:41 PM
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Joined: 10/23/2009
Posts: 2,375
kiash wrote:
But at the end of the day (month) these guys end up spending more than double what the normal folks would spend.
@Sheri there is nothing like majuu kuharibu there are people who wait for sale or go for distances just to buy stuff in bulk so as to save some few coins.
At one time or another i think one needs to do some sacrifice to enjoy something else another day.If this guy buys a packet of 500ML and drinks 100ml per day,he will spend sijui 45sh.If he decides to be doing it daily,for 5 days for the same quantity he will spend 75sh

@kiash some of these guys have no end month, they live on a day to day basis.Maybe it is difficult for you to twist this around your head.
It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
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mukiha
#13 Posted : Tuesday, January 14, 2014 12:34:28 PM
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Joined: 6/27/2008
Posts: 4,114
The logic behind Kadogo is not low prices. It is convenience of purchase; and for that, slum dwellers are willing to pay the premium.

You see, this is a person who cannot afford, say to drink tea every day because hi income is very erratic.... some days he gets work and gets money, other days he doesn't.

On the day he has money, it is NOT enough to buy 2kg unga + 1kg sugar + 500g blue band + 500g Kasuku + .... +.... that you can get from the supermarket!

But he can buy 20bob unga +5bob sugar + 5bob blue band + 10bob Kasuku etc and still have some balance.

On the days he has no work, luxuries like sugar and blue band are skipped and he buys only the basics.

He knows full well that buying Kadogo is very expensive and he lives for the day his income will stablise so that he can enjoy the savings that you enjoy at Tuskys.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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mukiha
#14 Posted : Tuesday, January 14, 2014 12:39:15 PM
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Joined: 6/27/2008
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BTW: Suppose a petrol station announce a volume discount of Sh75 per litre, but on condition that you pay for 10,000L in advance and must be for your car only [you give them its reg no.]; would you buy?

Do you have 750k to buy the fuel that you can't sell to some one else?

Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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mozenrat
#15 Posted : Tuesday, January 14, 2014 6:42:59 PM
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Perfect analogy...

mukiha wrote:
BTW: Suppose a petrol station announce a volume discount of Sh75 per litre, but on condition that you pay for 10,000L in advance and must be for your car only [you give them its reg no.]; would you buy?

Do you have 750k to buy the fuel that you can't sell to some one else?
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McReggae
#16 Posted : Wednesday, January 15, 2014 10:17:34 AM
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Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
mozenrat wrote:
Perfect analogy...

mukiha wrote:
BTW: Suppose a petrol station announce a volume discount of Sh75 per litre, but on condition that you pay for 10,000L in advance and must be for your car only [you give them its reg no.]; would you buy?

Do you have 750k to buy the fuel that you can't sell to some one else?




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..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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