Gee, this is nothing putting thousands and thousands of high paying miners back to work wouldn't help. Remember they are paid 4-5 times minimum wage. On top of this, once the mining law is settled, foreign investment in mining and other sectors should take a big jump.

Shopkeepers complain of low sales and low profit margin

July 20, 2008

Having a shop was no longer profitable, said Marina Franco, owner of the pantry Elizabeth, the block E-10 of the Guangala, in the south of Guayaquil. He complains a little utility that gets from selling daily, both by the small percentage who give suppliers for the decrease in consumption due to the shortage affecting the country.

Shopkeeper Las Malvinas; Rodrigo Lema, La Floresta, Maria Rivera, owner of a shop in the north of the city, was equally disappointed. Franco said that there were days that closes the box with 10 dollars. As estimated average daily sales of $ 50, that lets you a profit of $ 12, $ 360 per month. Do not pay rent but light, $ 50 monthly. The work in a store starting at 06:00 and ends at 22:00.

The shopkeepers pointed out that the profit margins that give distributors are minimal. For example, the tuna has a cost to the owner of the store is $ 0.95 and marked for sale at $ 1.05.The litre of oil will cost the shopkeeper and must sell $ 2.08 to $ 2.19, 11 cents gain, equivalent to 5%. Most products are now marketing their prices marked, so if the seller goes up a penny people complaining, concerns Rodrigo Lema, who until a year ago was selling an average of $ 200 per day. Today $ 130 on average, with a profit of $ 20, $ 600 a month, but must pay $ 120 rent and $ 60 for light. The profit margin does not exceed 12%.

Patricio Loor, distributor takes to 600 stores in the north and northwest of Guayaquil, which justifies the percentage giving the factories is minimal. "A shopkeeper should win at least 20%, but does not occur. We dealers have a margin of 8% and less, we sell lots to see any profit, because they must invest in payments of staff, storage and transportation, "he says. The low purchasing power of people, driven by higher prices, lower sales generated.

There are customers who ask for a sleeve of noodles from 20 cents, 30 cents for cheese, an egg with that and prepare their food. "They have for more and one must comply with centavitos," said Maria Rivera. Consumers blame the rise to the shopkeepers and traders. These brought to distributors; them to the factories. Traders also denies because the crunch should invest more money. Ivan Ascencio, a post-market Sauces IX, said that a year ago invested $ 400 to take his post and bid on a Saturday. Now you need to invest $ 700.