[ad_1]
Damascus – specifically for Ceriastipes:
Muhammad Hallaq, a member of the board of directors of the Damascus Chamber of Commerce, said: “Although the exchange rate has been stable for some time, there is a strange equation in the Syrian market, which should affect the balance of many materials. The crisis has come to us from abroad, pointing out that in this context, the transportation costs have increased, which has greatly affected the costs. The transportation costs have risen from the level of 1,800 or 2,000 US dollars per container to the level of 6,000 or 7,000 US dollars, and even to 8,000 US dollars, which has led to an increase in the prices of materials, and some commodities have increased by 25%.
One of the evidences of the “strange and weird” local market is that Hallaq uses food as an example, which is often described as stable and declining at present, but the reason is weak sales, and when sales are weak, profit margins become low. If a business wants liquidity, it must achieve sales, so they take the approach of lowering prices because it wants funds to turn around quickly to continue operating, but if it cannot achieve this, it will face a real problem that affects its business.
In response to a question about whether prices in the Syrian market are stable, Hallak talked about the indicators he personally observes in the market that can truly reflect whether the market is prosperous.
For example, the storefront.. the description of the storefront and the way the merchandise is presented also has a sentence, “We need an experienced person to do this job.” We noticed that it has disappeared or we rarely see it these days, which means that employment is at its lowest level, because the store owner tells you, “This is my local place, I can sell it, I can sit it, even clean it, of course, is the reason.” , Is there a lack of sales and work, which is also reflected in the stability of the market? .
Taking the electrical industry as an example, we note that it is facing challenges today and even though the demand for fans and air conditioners should be there due to the heat, we find that the industry is groaning and there is not the sales activity that it should be.
Damascus Chamber of Commerce board member says market stability and movement must be active and high… not stable and low
Speaking to Syriasteps, Hallaq continued: The clothing sector is also tired, which can be seen from the reality of the market, and exports are weak, as we know in the past. Today we notice that sales are at a low level and even the demand for purchases has fallen, which greatly affects price stability.
To illustrate his idea, Al-Hallaq mentioned this method
Two places:
The first: the owner borrows the price of the commodity, so he is obsessed with being able to sell the commodity and pay for it and guarantee his expenses.
The second owner is working with an “ocean of money”, as they say, and is not ready to sell at a loss, operating on the principle of “keeping the honey in the price until the price comes”.
This explains the difference in prices of the same clothing between one store and another, and in the same market, for example, in the first store a jacket is sold for 1 million liras, while in the second store it is sold for 1,300,000 liras.
“The first store to operate on credit wanted to sell merchandise any way it could to guarantee payment and cover its expenses,” so it lowered its prices.
As for the second store, it is run with its own money and it is not prepared to sell “at a discount” as they say, so it can afford to hold on while waiting for someone to pay.
Therefore, the criteria for business success are sales success, the ability to achieve profit margins, hire and pay expenses, achieve net profits, and even consider expansion.
Many stores, especially in the clothing and textile sectors, have seen minimal and weak sales in the past seasons, and many have been forced to sell at discounts to cover expenses and burdens and revive sales.
Can this be called market stability?
| Share via comments: |
[ad_2]
Source link
