The choice between pricing goods in Naira or dollars has become one of the challenges of Nigerian designers and even Beautypreneurs (especially the hair extension vendors ) with a decision influenced by the Naira’s economic volatility and the stability of the US dollar.
Fluctuating Naira value complicates price setting. While using Naira may suit local markets, it exposes businesses to currency risks. Conversely, pricing in dollars offers stability but may deter local buyers due to higher perceived prices.
Recently , social media was buzzing with this issue of why some designers strategize by adopting dual pricing, allowing payment in Naira or dollars.
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Of course the comments were not in this budding designer’s favour
However, managing this demands vigilant monitoring of exchange rates to ensure fairness. Preferences vary based on target markets, production costs, and profit margins. Global-focused designers favor dollars for transaction ease and stability, while local focus leans towards Naira for market alignment.
The dilemma persists—a juggle between accessibility, stability, and competitiveness. Nigerian designers innovate to navigate this complex decision amid economic fluctuations.
Is it a clear case of Damned if you do & Damned if you don’t