Spare part businesses are suffering as sales hit an all-time low in years. This has compelled some owners to consider laying off workers keep their businesses afloat.
Dealers who rely hugely on the dollar to import products are struggling to get it. As a result, some have already started reducing salaries of workers.
Others who eventually get the currency are hit by inflation which affects prices, scaring off customers.
The JoyNews Living Standard Series’ crew were back at Abbosey Okai where things have moved from bad to worse.
A spare part dealer, Godfred Oppong, said his business has been struggling recently because for the first time in 16 years, he owes his creditors and they are not making things easy for him.
For days, he has not recorded any significant sales. As of 10 am during the team’s visit, no customer had bought his brake shafts.
He expressed worry over the situation.
“The whole of this year, I have never travelled; I have not bought any items from anyone because I cannot. Anybody that knows me in Abbosey Okai knows that these items are from last year.
“That is because the dollar is up. The person who should have come to purchase some of my items says his business is not moving; he needs the items but he cannot afford to buy. The market is chocked,” he observed.
Godfred K. Oppong Enterprises was established six years ago after he worked as a salesman for 10 years with another spare parts dealer.
The business had been booming until the last quarter of 2021. His goods from last year are still on the shelves.
Godfred says he has been forced to cut down on the wages of his employees in order to stay afloat.
“I used to pay each of them ¢1,200 monthly but because of the condition I have to pay them weekly. I divide the ¢1,200 and pay them each week because I cannot get that amount to pay all of them if I should wait till the end of the month.
“I have decided to even reduce the amount I used to pay them because I cannot sack them and I have to speak to them; they know what is going on here,” he added.
If the cedi continues to fall against the dollar, which makes the cost of spare parts more expensive, Godfred says he may be forced to lay off some workers or further slash wages.
One of his employees, Edward says the cut in wages is affecting his family.
“I have realised that things are tough these days so I want to avoid things that make me spend money unnecessarily,” he said.
Kwame Jack, a car mirror dealer, lost two customers before midday because they could not afford to buy. But he has little control over the matter.
Jack adjusted his prices by over 50 percent because of the escalating dollar rate. His second-hand mirrors range between ¢300 and ¢2,000 for a pair.
“Because of the dollar rate, the prices have soared. Corolla mirrors which used to sell at ¢200 are now ¢300. So, I had to increase the price to ¢350.”
The situation remains the same for Harry, whose family has been dealing in shafts for 25 years.
He also blames the rising dollar rate for their bad business.
Customers are also suffering the brunt of the depreciating cedi.
The news team caught up with an auto-electrician who had gone to buy a part for a car he was fixing.
According to him, the price has doubled from the last time he bought one.
With fewer customers, some dealers spend their time sleeping or engaging in football discussions.
