The President of the Ghana Union of Traders Association (GUTA), Clement Boateng, has warned traders and service providers against maintaining high prices in an increasingly competitive market.

He said that businesses that refuse to adjust prices downward risk losing customers and collapsing.

Speaking on Joy News’ PM Express on Monday, Mr Boateng said he finds it troubling that some businesses still refuse to reduce prices despite a decline in input costs.

“I see the action of not wanting to reduce prices as a deliberate issue,” he said, citing the example of a bread seller who refuses to reduce the price of bread, “irrespective of the fact that the commodity… that he’s using to bake the bread… has gone down.”

He described the conduct as an attitude among some Ghanaians who, in his view, refuse to allow others to benefit even when conditions improve.

“And I see that as an attitude of some of Ghanaians that, irrespective of whatever situation that we find ourselves, we will not let our compatriots also enjoy the gains that we have made,” he said.

Mr Boateng stressed that the cedi’s appreciation has been sustained long enough to make a difference and that the business community has benefited from improved market conditions.

“It is an undeniable fact that the cedi has appreciated for quite some time. And the business community has made some gains,” he noted.

He said the right thing for businesses to do is pass some of those gains to consumers.

“So definitely, the gains that we have made, we are supposed to also pass it on to the consumer, for the consumer to also enjoy a bit of what has happened in the marketplace,” he said.

When asked by the host whether that had happened, the GUTA President responded that price reductions have been widespread, but some traders continue to resist.

“It has happened across board. Yes, across board. But you see, as we say, we have bad nuts in every community,” he said.

According to him, those who have decided not to reduce prices are only hurting themselves because the market rewards turnover and speed, not stubbornness.

“People have made up their mind that they will not reduce their prices,” he said, adding, “But I pity those people, because the market that we are in is a very, very competitive market.”

Mr Boateng explained that traders rely on credit and other business facilities, and that many businesses' survival depends on how quickly they sell and restock.

“The business that we do, we use facilities in doing the business, and businesses thrive on turnover,” he said.

He warned that traders who hold onto stock and refuse to price competitively will lose out to those who sell faster and reinvest.

“So if you sit behind your goods… and you will say, you will not reduce it for the consumer… you do so at your own expense,” he cautioned.

“Your neighbour will sell fast and then bring in more goods to make the turnover that he wants, and his business will thrive, and then you will sit beside your goods, and will not make any sales,” he added.

Mr Boateng maintained that overall prices have declined in the market, and that trend is reflected in recent inflation data.

“So I can tell you for a fact that generally, prices have gone down. And that is why inflation also seems… to be going down,” he said.

Explaining inflation in simple terms, he said: “Inflation simply means having a purchasing value of your money on either goods or services.”

He concluded that, regarding the cost of goods, the evidence is clear.