BUA Cement Sellers Speak 4 Weeks After Company Slashed Price From N5,500 to N3,500 Per Bag
- Some retailers of BUA Cement have revealed why the price cut has yet to reflect on the product four weeks
- They say the company said the company sells the product at N3,500 at its depot, but the cost of freighting makes it impossible to sell at the new rate
- Per the retailers, they hire trucks at the price of N1,000 per bag to move the product from the factory to their depots
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Some retailers of BUA Cement in Lagos and Ogun states have revealed why the products are still sold above N5,000 per bag four weeks after the company announced a price cut.
Legit.ng reported that Cement slashed the ex-factory price of the company’s products from N5,500 to N3,500, beginning October 2, 2023.
Source: UGC
BUA reveals reason for price slash
The company announced the decision after BUA Cement founder Abdul Samad Rabiu visited President Bola Tinubu on September 16, 2023.
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According to the statement by the company announcing the price slash, the move is part of its ongoing effort to boost its production capacity to 17 million metric tonnes per annum before the end of 2023.
Findings reveal that four weeks after, the price of BUA Cement has remained unchanged and is still sold above N5,000 in some depots in Lagos and Ogun states.
Retailers lament the high cost of transportation
TheCable reports that some retailers confirmed that the company sells the cement at N3,500 at its factory in Benin but that the sellers said they have to visit the site to get the product at the discounted price.
A BUA representative was reportedly quoted as saying that the company needs more trucks to distribute its products. Hence, the retailers must hire a truck for N1,000 per bag, discouraging them.
The retailers say they partner to hire trucks, but the N1,000 per bag is a significant discouragement, making them resort to selling other brands.
They say hiring trucks from other companies, such as Dangote, could create such problems as confiscation if caught, among others. They stated that the cost of freighting the product from the depots to their retail sites would still make it sell at the old price.
Dangote, BUA Cement spent N205 billion powering generators in the first 6 months of 2023
Legit.ng reported that two of Nigeria’s biggest Cement manufacturers, Dangote Cement and BUA Cement, said they spent about N204.925 billion powering their generators for operations during the half year ended June 30, 2023.
The spending represents an 18% increase from N173.537 billion recorded during the same period in 2022.
The amount also represents 41.15% of the total cost of sales for the firms, amounting to N498.031 trillion recorded during the review period.
Source: Legit.ng
