₦airaland Forum

After Dangote cement announced the reduction of their cement price from #1700 to #1000, popular TV presenter Sola Salako has a say on the new price.

“I hear Dangote just singlehandedly, crashed the price of cement to N1,000 from N1,700! Obviously, this is another move in the attempt to stifle competition coming on the heels of getting SON to re-grade cement classification in its favour via
political patronage.

While this seems like a benefit for consumers in the short term, I fear it is very inimical to growth in that sector in the long term. The few competing brands may eventually close down if they don’t survive the price war after emerging bruised from
the pseudo classification battle.

More unemployment looms…

Just as Dangote has the singular power to determine pricing downwards, who will challenge him when he pushes price to N3,000 after he has successfully run competition out of the market?

More HERE

bless you... that was my thought exactly

My thought too as a business minded person

Apparently, the TV presenter knows nothing about the cement industry. It cost less than N600 to produce a 50Kg bag of cement in Nigeria or to import same from outside Nigeria.

No cement manufacturer or importer will run out of business by selling at N1,000.

Well everything has advantages and disadvantages.

agonbello:
Apparently, the TV presenter knows nothing about the cement industry. It cost less than N600 to produce a 50Kg bag of cement in Nigeria or to import same from outside Nigeria.

No cement manufacturer or importer will run out of business by selling at N1,000.

then why haven't they reduced it long before now? If you analysis is correct. It is very obvious the prices will skyrocket back very soon. I know there will soon be a scarcity of the product and the excuse will be that some people are hoarding it . All this price slash will only last maybe till december before an artificial scarcity is created .

onatisi:
then why haven't they reduced it long before now? If you analysis is correct. It is very obvious the prices will skyrocket back very soon. I know there will soon be a scarcity of the product and the excuse will be that some people are hoarding it . All this price slash will only last maybe till december before an artificial scarcity is created .

They didn't reduce it before now because the government permits them to do so, plus all the cement manufacturers and importers are too greedy and not satisfied with a little profit margin.

The reason why Dangote is reducing the price now is simply because he has fully recoup back all his investment (in a shorter time because of the high profit margin). He has gotten his money back, and his factory is still dia generating close to 2billion dollar profit annually.

If you don't know, know it now that despite Dangote's obajana cement plant runs 24/7 on diesel engine, the production cost per 50Kg bag of cement is approximately 3dollar (about 495naira). A little difference applies to other cement manufacturers, plus cost of importing cement is far less than 600naira per 50Kg bag.

This is the kind of intelligent and informative thread that should be on front page

agonbello:
They didn't reduce it before now because the government permits them to do so, plus all the cement manufacturers and importers are too greedy and not satisfied with a little profit margin.

The reason why Dangote is reducing the price now is simply because he has fully recoup back all his investment (in a shorter time because of the high profit margin). He has gotten his money back, and his factory is still dia generating close to 2billion dollar profit annually.

If you don't know, know it now that despite Dangote's obajana cement plant runs 24/7 on diesel engine, the production cost per 50Kg bag of cement is approximately 3dollar (about 495naira). A little difference applies to other cement manufacturers, plus cost of importing cement is far less than 600naira per 50Kg bag.

pl pl call me

[quote author=jaybossYBNL post=27719187]After Dangote cement announced the reduction of their cement price from #1700 to #1000, popular TV presenter Sola Salako has a say on the new price.

“I hear Dangote just singlehandedly, crashed the price of cement to N1,000 from N1,700! Obviously, this is another move in the attempt to stifle competition coming on the heels of getting SON to re-grade cement classification in its favour via
political patronage.

While this seems like a benefit for consumers in the short term, I fear it is very inimical to growth in that sector in the long term. The few competing brands may eventually close down if they don’t survive the price war after emerging bruised from
the pseudo classification battle.

More unemployment looms…

I keep teaching any person who cares to hear, of military tactics and strategy in today's business climate.
Words use in most windows blinded boardrooms are annihiliate, squash, smoke out competitors, twist, capture, poub customers (prisoner of your business,) heard of pow?Dangote is a good student, there is a compelling reason to trample whole