Economics is not my strong suit, but saving money is. In fact, my new-found friends in Lusaka constantly make fun of my penny-pinching ways. When you've lived slightly above New York state's poverty line for almost a decade, you learn a thing or two about saving money . Hear me out, folks. By my third week in Lusaka, I observed that prices of the same product were noticeably different, depending on the store and location. And sometimes these stores were within walking distance of each other (Manda Hill Mall, for example). Again, economics is not my strong suit, but isn't there some principle about price competition and how if your neighbor is selling the same item at a lower price, consumers are more likely buy it at the cheaper price?
Well, apparently, that principle does not hold in Lusaka.
First the principle does not hold among consumers. Many of those who make fun of me have admitted being aware of the price differences, but they usually cannot be bothered to walk over to the other side of the mall to get it at a cheaper price.
Secondly, the principle does not hold within the stores themselves. Take the example of Game store. This is where I have been conducting my research for the past eight weeks or so. Having noticed the price discrepancies all over the store, I decided to take pictures of one product over time (5-liter Fruitree drink). Actually, I was first drawn to this item because back in September, the weekly savings leaflet showed that it was going on sale the next day for 42,000 Kwacha. The only problem was that it was 38,000 Kwacha ($7.60) on that day. How could the sale price be higher than the current price? When my friend "E" and I inquired, we were told that there had been a misprint. Unfortunately, I was not able to go back to the store during the sale days to verify whether it was indeed a misprint. I did take a picture of the sign for 38,000 Kwacha though (see below -- sorry the picture is blurry):
Well, the week after that, it was neither ZMK 38,000... nor was it ZMK42,000. It was ZMK 40,000!
Then it was ZMK 42,000 Kwacha...
Game customer service representatives have attempted to explain these weekly price fluctuations in different ways:
-- "We follow the prices from South Africa. So depending on the conversion rate of the Kwacha to the Rand that week, that is the price."
-- "The difference is not that big!!"
-- "It is to attract the customers."
I was "attracted" alright!!
Then it was ZMK 46,000 Kwacha...
My all time favorite though, was when two weeks ago, the 5-liter Fruitree had two prices (same day), depending on which side of the placard you were standing!
Front: Back:
When my friend "M" and I, once again, inquired about this blatant discrepancy, the service representative (who happened to be the floor section manager) didn't seem amused. He stated: "It's 40,000. When you get to the counter, you will see that it is 40,000". Okay..... but do you not care that you are confusing your customers? I guess not.
Back in September, I bought an appliance set (kettle, sandwich maker, toaster, and iron) for ZMK 329,000, which was on sale from ZMK 480,000. It was a great deal and I was delighted! Definitely a "Hot Deal" as it had been advertised. The next week, however, the same item was being advertised as yet another "Hot Deal" for... ZMK 480,000! The product is on sale again this week for ZMK 329,000. I will take a picture of it and then one the week after, just for laughs!
Life in Lusaka, Zambia is fun, but it is not cheap. Watch out for a post about the price we pay for living in a "landlocked" or as some cleverly call it "interlinked" country.
I was pleasantly surprised to find out that a movie ticket costs $3 during the week and $6 on weekends -- how exciting is that? Guess who will be watching a lot of movies? I hear "Finding Nemo" is now showing in 3D! I am watching "Skyfall" tomorrow!
Until next time...
