Why is the fuel scarce?
Well, according to Wikipedia, Fuel scarcity/shortage is caused when its supply falls short of a specified level of demand. If supply cannot meet demand at the prevailing price, prices must rise to encourage more supply and to ration demand. In this sense, fuel scarcity is reflected in the market price.
The solution to fuel scarcity in Nigeria?
In as much as this is something we all would love to know presently in Nigeria, the solution to this nationwide fuel scarcity is not yet certain but the best way, according to our experts in the field is to reduce the world’s dependence on non-renewable resources and to improve overall conservation efforts and start using other types of renewable energies – such as steam, solar, and wind.
How the fuel scarcity in Nigeria affects businesses?
We all know the impact of fuel scarcity and the hike in fuel prices are taking a toll on everyone in Nigeria. While the everyday Nigerian is feeling the bite of the situation, the impact is more for businesses, especially startups and small businesses just trying to make headway.
Even airlines are considering pausing their operations. Consider the risk of losing your investment in your business because you cannot operate profitably. By investments, we are not only talking about money, we are also talking about investments in time, effort, and emotions.
Well, the good news is; It’s not all gloom and doom! Your business can still function with the fuel scarcity in Nigeria today if you adopt the following measures:
1. Consider alternate sources of power
Explore purchasing solar-powered products and battery inverters for your day-to-day operations. This could be more expensive in the short term, but it will pay off in the long run.
On the brighter side, you could use this asset purchase to reduce your income tax liability. You’re welcome!
2. Pivot and reshape operations
Reduce your company’s dependence on fuel with the help of this technique.
Employees can be made to work remotely to reduce the amount of energy consumed in the office, or operations can be scheduled efficiently to utilize the least amount of fuel possible. If your firm is located in a region where power rationing is in place, you can take advantage of this by scheduling your work for times when power is guaranteed.
3. Cost-cutting without compromising quality
Your business can reduce costs by doing the following:
- Outsourcing jobs that are less expensive when done outside of the company;
- Renegotiating with your suppliers;
- Market research to locate vendors who can give you lower prices, buying in bulk or processing in bulk;
- Getting rid of waste (production processes can be done in ways that wastage will be reduced)
4. Draw up a pricing strategy to suit the current situation
Raising prices is usually a difficult decision for a business. You risk losing current clients to competitors. However, if you wish to remain profitable, you must alter your prices to reflect current market conditions. Your pricing plan should take current market conditions into account while also considering their impact on your clients to avoid jeopardizing key sales revenue.
At LEVELUP Consulting, we advise on pricing strategies and techniques that can assist your businesses in establishing appropriate prices and revenue targets. Our flexible plans are specifically designed to address the challenges you have in your organization.
Why not contact us today.