Electrical household goods still overpriced

Staff Reporter 04-06-2009

Household electrical goods in most of the shops in Harare are still overpriced.

In a survey carried by Business Zimbabwe, it was realized that some of the shops are charging between two and three times more the actual price in th region.

This survey where shops were chosen randomly also revealed that the shops were fully stocked with brisk business being recorded.

Items which were looked at included radios, stoves, televisions and refridgeators.

It was discovered that most radios were going for upwards of US$150 with some going as much as US$250.

These prices are for radios with three or five compact disk changer, double cassette player and two to three band tuner. They are also from reputable manufacturers such as Samsung, JVC, SONY and Phillips.

However, a comparison of the prices with those from the region, especially South Africa shows local gadgets are more expensive.

In South Africa for example, a three CD changer, double cassette with FM and AM tuner costs a maximum R1 000, and when it is on promotion it may be going for less than that at around R900.

The trend of higher prices was also shown on television sets which are priced at more than US$200 locally yet they cost around R1100 in South Africa.

It has to be reckoned that the exchange rate locally has been pegged at US$ to R10 for administrative purposes.

As such at US$250, a television set actually is priced at R2 500 which is more than twice the R1 100 in South Africa.

Other gadgets such as fridges and stoves are equally over priced and some of the shops which were included in the mini survey offered a number of reasons for the price disparities.

One major reason that has been offered is that the cost of doing business is higher in Zimbabwe than in other countries in the region.

An example given is that of overhead costs incurred by local shops which may be higher than those of other countries. Telephone costs, transport and electricity are some of the overhead costs which many say have seen the actual price of commodities on the shelves being higher than other countries.