JEDDAH — Increasing prices of consumer products have become the talk of people who are surprised each time they go to the supermarket or to a local restaurant.
The talk has spread to forums on the Internet with some people calling for a boycott of products whose prices have increased. Under the slogan “Don’t raise the price, alternatives are available”, www.mqataa.com website called for boycotting certain locally available products. It also offers a schedule of products whose prices have gone up with cheaper alternatives.
People on the site’s forum call companies and traders greedy because they have raised prices without thinking of low-income consumers. The website’s forum hosts about 670 members. “The (website’s) founders and members are simple Saudi citizens who are suffering because of the price rise and are calling for a law to protect consumers,” according to the webmaster of the site who responded to an e-mail. “They call on decisionmakers to interfere to stop this greed.”
The boycott call comes as people are scared of hunger. The price increase is not just limited to foodstuffs but it is visible everywhere including rent. The website aims to raise awareness among consumers and deliver the message to those concerned. “We have the option to buy from whatever company we want,” said a forum post.
“Businessmen are the ones who will be affected when their goods stay on the shelves and get rotten. They used the 15 percent salary increase that has not even reached the private sector,” said one of the members in the forum.
Another citizen said products coming from a certain country are sold in other countries for 25 percent less, but here they are sold at 50 or 75 percent more. “I’m not jealous of businessmen who make profits, but don’t exceed it in a way that would harm other citizens,” he said.
One of the main reasons for the price increase is the fact that the riyal is pegged to a weakening dollar. Because the Kingdom relies heavily on imported goods, the prices of these items rise as the dollar falls against other currencies. Even items produced in Saudi Arabia, such as dairy products, can be adversely affected if the raw ingredients or other necessities for making the products are imported.
One of the people who posted their opinions in the forum said that he requests officials in companies to tell the reasons behind the price increase.
Barnie’s, one of the popular drive-thru coffee shops, increased prices by SR1. “We depend on the prices of primary elements we use — coffee and milk. A bag of coffee that used to cost SR350 to SR400 now costs SR450 or SR500. The local dairy companies that Barnie’s deals with also raised their prices,” said Mohamed Al-Zain, vice president of Al-Amjad Establishment-Barnie’s.
Al-Baik restaurant had a price increase averaging 10 percent on its menu items.
“Our concern is to provide our customers with the best value for money, and had kept the prices steady over the years. Unfortunately, this had to change in June this year when Al-Baik was left with no choice but to implement a price increase averaging 10 percent on its menu items,” said Adel Bakr, general manager of Express Foods Company Ltd., which runs the fast food chain.
He said that this increase was due to the unprecedented hike in commodity prices, which in turn gave the local and international food and packaging suppliers no choice but to raise their prices to Al-Baik by 20-60 percent.
“Al-Baik absorbed such hikes for over 24 months after which it became impossible to sustain. We are committed to quality more than the price. Our customers expect that and trust that we will honor such commitments, even if it means a first-of-its-kind nominal price increase. At the end of the day, customers are the judges of the value they get for their money,” he added.
Dealers of imported brands are under pressure to follow the price rules of the mother company.
“The mother company has a target profit. When the cost of production is high, the profit will be less. So the company will have to raise the price of the product to guarantee the profit without compromising on quality. The company puts pressure on us. On the contrary, we usually do not favor increasing prices unless there is a fundamental reason that affects our profitability,” said Abdulaziz Khogeer, Pampers assistant brand manager.
Boycotters responded by saying that it does not make any sense to them. “Those businessmen are greedy ... just before the date of raising the price of cigarettes, the shops were empty of them so that they can guarantee a bigger profit the next day,” said one of them.
On Tuesday, members of the website will focus their campaign on Al-Marai and Nestlé products. They will spread messages and SMS asking people to support the campaign.
