Ayanna Kirton, Staff Reporter
WITH THE current economic slump, informal commercial importers or 'higglers' as they are commonly called, will face an even more difficult year in 2003.
Stiff competition from the low cost retailer, Bashco Trading Company, as well as the vendor removal process put in effect by the KSAC are a few of the problems they have to contend with on a daily basis.
"Life is hard," said one higgler, who wished to remain nameless. "This business is like gambling. Even though we have a few loyal customers we have a lot of competition from Bashco where the prices are cheaper but the quality is not as good as ours."
For the last 11 years she has been selling clothes, shoes, and other accessories downtown which she purchases abroad from wholesalers in Miami, Curacao and Panama. She makes what she considers a "decent" living and manages to send both her sons to private schools. "I don't want them to live like me. I want them to have jobs where they can wear a jacket and tie." But because of hard times she has had to let two of her four employees go.
Although she is a registered member of the United Vendors Association (UVA), she fails to see the results of the work they do on her behalf." They're not doing anything for us" she lamented of the association. The UVA, established to represent all vendors, requires a $500 fee for membership in addition to weekly fees of $100. Consultant to the UVA, Egeton Newman explained that although the organisation cannot meet all demands, they are currently lobbying for proper vending facilities and focusing on the training and development of vendors. He revealed that the cost of selling in an arcade or market is "tremendous" and is dependent on the amount and the type of goods that a vendor sells. Goods are valued by the KSAC, which can collect up to $7,500 per month from each vendor in the Constant Spring Arcade. He argued that in today's financial climate, less than 35 per cent of vendors make over $7,500 daily with a very small percentage of those located in the Pearnel Charles Arcade making a significant amount.
"The fees charged to these vendors are extremely high and there are no sanitary facilities provided for them. It is very dark inside so customers are very hesitant; no one wants to go in to buy because they may not feel safe. Sometimes these vendors make only $1,000 a day."
He also explained that in addition to arcade fees and airfare to and from the various shopping destinations, customs clearance fees, and even extortion fees also have to be budgeted for.
All informal commercial importers are required by law to possess a tax compliance certificate, which is renewed every six months. In addition to income taxes, duties are very costly; "You can pay up to $80,000 at customs. It just depends on how much goods you bring down," said another vendor. Some vendors opt to purchase their goods in bulk locally from higglers who sell at wholesale prices; this saves them the cost of the airline ticket and customs fees.
Jennifer, another vendor in the downtown area says, "Faith alone has kept me going". She has also ceased her shopping trips overseas because of the high taxes levied on imported goods. "It's too expensive", she complains. She has been in the business of buying and selling clothes and shoes for 20 years but has no system of records whatsoever put in place to keep track of her daily sales.
Unfortunately, her situation is not uncommon. Newman admits that efficient money management among vendors is one of the areas, which needs to be addressed immediately. Many vendors like Jennifer do not possess basic mathematical or accounting skills. In an attempt to combat this, the UVA will begin a series of seminars and workshops in financial management, business management, and basic money management in the near future. All vendors will be required to attend these two-day workshops which will also increase vendor awareness in areas of loan application and proper utilisation of these loans.
