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Businesses stay afloat by giving discounts

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Publish date: Mon, 06 May 2024, 09:19 AM

JOHOR BARU: Some businesses here have managed to stay afloat by offering discounts during the Hari Raya festive season.

For textile shop owner Raja Airan Raja Ismail, her ongoing Hari Raya promotions have managed to draw in customers.

“It is important to ensure that the shop continues its cash flow, even when the revenue margin is low.

“Most of the designs I’ve sold were clothes from the year 2022; the demand right now is for the 2024 design, so if I keep the items unsold at my store, it will lead to a drop in revenue.

“Which is why I have sold every previous year’s items at a discount between 50% and 70% just to ensure that there is money coming in, and sustaining the business,” she said when met at her shop in Plaza Angsana Johor Baru Mall.

Biscuit seller Mohd Naharudin Isa, 53, said he was thankful that business was still thriving despite not having any social media promotions.

“Shop owners are promoting their biscuits on TikTok, Facebook and Instagram at a very competitive price.

“I was worried at first, but I believe that what is meant to be mine will be mine. Majority of those who supported me are my loyal customers.

“They trust the brand I sell and continued to show their support during this year’s Hari Raya,” he said.

Angsana Malay Traders Association chairman Tengku Ahmad Rosdi Tengku Abdullah, 53, said this is the second year that businesses in Plaza Angsana Johor Baru Mall performed averagely.

“Only a handful of them managed to make profits, while the majority of them only managed to get back what they invested, and two shops suffered losses.

“I believe this was due to the high cost of living combined with the reopening of schools after the school break, so people had to spend their money wisely.

Tengku Ahmad Rosdi said the last 10 days before Hari Raya were usually the busiest time of the year, but not this year.

“All of us depend entirely on the revenue from Hari Raya sales. It is only during this time that our goods are in demand; there are no customers buying Hari Raya clothes after the festive season,” he said.

According to boutique manager Muhammad Afiq Naif, 29, his shop suffered about 50% losses compared with last year.

“We believe that the main reason was that the date between the reopening of schools and fasting month was close.

“Also, those who had received a RM2,000 bonus from the government earlier had spent it on school necessities.

“The fasting month is the only time of the year that we can accumulate savings to keep our business afloat for the whole year.

“So if we perform poorly, it will affect all of us,” he said.

 

https://www.thestar.com.my/news/nation/2024/05/06/businesses-stay-afloat-by-giving-discounts

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