Small food traders opt to earn less over losing customers


Kalidevi Mogan Kumarappa

Rohana Ibrahim says even after raising the price of her cucur udang, her profit margin has shrunk. – The Malaysian Insight pic, June 19, 2022.

RISING prices of ingredients such as flour and eggs have hit hard small food traders, whose small profit margins prevent them from absorbing the higher costs.

Popular snacks such as cucur udang now cost more to make, and trader Rohana Ibrahim, 45, fears she will lose customers if she raises prices.

“Previously, a sack of wheat flour cost RM70, but now, it costs RM88. As a small business owner, I am severely affected.

“I’ve had to increase the price of my cucur udang from RM5 to RM5.50 each,” said Rohana, who owns a stall in Cheras, Kuala Lumpur.

But even after raising the price, her profit margin has shrunk.

“Some customers complain and have stopped buying, but there are also others who are understanding. Many are still supportive of my business.”

Lim, a dim sum seller in Balakong, Selangor, said he has yet to raise his prices.

Instead, he is trying to cut costs, such as by reducing the use of electricity.

“I am also sourcing from suppliers who offer lower prices,” he said.

Lim, who wished to be known by his surname, said he does not want to burden his loyal customers.

“My customers have been buying from me for many years. I feel sorry for them,” said Lim, who has been selling the Chinese staples for 15 years.

Bakaruddin Mohamed says he has raised the prices on his menu by 20 to 50 sen as the costs of ingredients have gone up. – The Malaysian Insight pic, June 19, 2022.

In Kajang, Selangor, roti canai seller Bakaruddin Mohamed, 60, said not only has the price of flour increased but some suppliers are setting sale limits as well. 

“Most suppliers are now saying that they will only sell limited quantities. And the price has gone up. A box of flour that used to cost RM25 now costs RM30, and some suppliers are saying that the price will go up by another RM4,” he said.

Bakaruddin has raised the prices on his menu by 20 to 50 sen as the costs of margarine, milk and eggs have also gone up.

“I know it is going to be a burden on customers,” he said.

What he needs for his daily menu now cost RM1,300, compared to RM800 previously.

Sitra Devve Sinniah says it is better to lower her profit margin than to lose customers. – The Malaysian Insight pic, June 19, 2022.

Sitra Devve Sinniah, 57, who owns a nasi lemak stall in Taman Maluri, Kuala Lumpur, said it is better to lower her profit margin than to lose customers.

“Usually, I spend RM40 a day to buy the ingredients, but now, I spend RM70,” she said.

“I don’t want to increase the price of my food as I am afraid that customers will not come any more.

“My customers are mostly B40 families or foreigners who can’t afford expensive food, and I don’t want to add to their burden.”

Meng Zheng, a baker in Petaling Jaya, Selangor, said the prices of the main ingredients in his business have shot up.

“Vegetable shortening and butter are becoming more expensive. In the past, vegetable shortening cost RM50 a box, but now, it costs RM143. Flour has gone up to RM81 from RM55 previously,” he said.

Even the plastic packaging for bread has gone up in price, and he is now paying RM15 per kg, compared to RM9 previously.

“I haven’t raised the price of my bread yet. My profits have decreased but I’m trying to maintain prices until the end of the year,” he said.

“The important thing is that I can keep my business afloat and pay my employees their salaries.

“I will try to do what I can by cutting electricity and other costs. Many traders have gone bankrupt and are unable to work, so I am grateful to still have my business.” – June 19, 2022.


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