Why are some locally made products more expensive than imported ones?

[Niyi Briggs]

By right, when you consider the cost of shipping and other logistics, imported products are supposed to be more expensive than locally made products. But some locally made products are more expensive than imported goods. Example is shoes. Nigerian made shoes are more expensive than imported shoes. What is the cause of this?

 

[Shavkat]

I guess the owners practiced the three times costs of the shoes. In business, this is a common pricing strategy. That is why some local made products cost an arm and a leg.

 

[Niyi Briggs]

I rather think that the total cost is offset my mass importation. That's because the importers can bring in up to a million pieces while the local producer might not be able to have close to that huge number.

 

[Blessed19]

By right, when you consider the cost of shipping and other logistics, imported products are supposed to be more expensive than locally made products. But some locally made products are more expensive than imported goods. Example is shoes. Nigerian made shoes are more expensive than imported shoes. What is the cause of this?

Well this is not in all products as there are some home made products that are very much affordable and cheaper than same product that is being imported into the country or city. But to be honest with you at times it costs more producing at home than when it is being produced elsewhere and shipped in for consumption alone.

 

[uptrendfinancialsignal]

The same thing is very surprising to me because some of the locally manufactured products are even more expensive than the imported ones.

 

[hastral45]

Locally made goods may be so expensive than the imported goods because of the high cost of production in the country. Many local industries are not getting supports from the governments as their counterparts in abroad.
Many local industries are getting their raw materials from abroad which is also the reason why the products are costly.
Lastly, most of the imported goods are brought into the country through the activities of smugglers who don't pay taxes on them. Consequently, they would be sold at lower price.

 

[eldavis]

In most cases it could be that the materials needed to make these products are extending expensive or hard to find, hence the pricing is extremely high to be able to meet up with demand.