No “Pakistani” spaza operates in isolation. First of all they live at the very shops they sell from. It could be a small one room no larger that a typical shack to a shipping container housing 5 makeshift sleeping quarters and a fully stocked outlet at the front end. They have a centralised banking system since they can’t bank in financial institutions. (Oh, and no! banks can’t capitalise on this fact like they did with stockvels, these guys are ghosts in state books). Within a community with five “Pakistani” shops, all five combine their takings, which are combined with that particular suburb’s other 15 shops creating a cash pool. That pool is used to buy stock in bulk from wholesalers ergo accessing large discounts. A dedicated “logistics department” with unbranded trucks delivers to a network of partner spazas. The discounts are passed on to the consumer at prices below inflation and enough to cripple a local shop owner usually working in isolation. seensawscene.tumblr/post/109192524187/entrepreneurship-lessons-from-pakistani-traders
Posted on: Tue, 27 Jan 2015 05:50:15 +0000
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