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Sheikh Naveed

Life long learner and passionate teacher

55

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Purchasing a low-cost item from the expensive market will make it expensive.

Today I Noticed:

Purchasing a low-cost item from the expensive market will make it expensive. I went to a shop (consider it as market A) in an expensive area and asked a shop owner for 16GB Kingston USB 3.0. He asked me PKR 1400. Then I went to another market (market B) in another relatively inexpensive area and purchased the same item for 680 only. What I learned was purchasing a low-cost item from the expensive market will make it expensive and vice versa. One of my friend’s relative got Rs. 40,000 difference in a cross-country tour package with same variables just due to purchasing the package from an inexpensive market.

In the way to home, I was thinking market B was also an expensive market because those guys need to cover high rental costs of their shops. In addition to the assumption (that had been proved as well) I come to know that there was a good competition in market B because there are a lot of shops selling the same stuff I bought (market A had not good competition because there were not a lot of shops around). So the competition proved itself another important factor while come to costs.

Summary: Purchase only from inexpensive areas and within the market with high competition.

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