An analysis of the strategies used in 2022 by retail beans (Phaseolus vulgaris) merchants to ensure profitability in the city of Matagalpa, Nicaragua

Abstract

This research focused on identifying seasonality management strategies to guarantee the positive profitability of the retail sale of beans by small merchants in the city of Matagalpa in the year 2022. For this purpose, information on retail bean merchants was collected and the strategies used by them for this purpose. In the bibliographic review, it was not possible to find studies that have addressed this topic and, therefore, it was decided to explore this topic without a hypothesis about its reality. The results indicate that the merchants surveyed are mostly men over 50 years of age with a maximum of secondary education and with 30 years of experience in the bean trade. Likewise, the majority of respondents are heads of households with 2-3 dependents and earn a net income between C$10,000 and C$15,000 per month. These merchants mainly operate their own establishments with mostly their own capital. For a good number of these merchants, the bean trade is one of the main entrances to their businesses, but they also offer a wide variety of household groceries. Eleven (11) strategies used by merchants to ensure positive profitability from bean trading were identified. The most used strategy is to quote prices regularly in the northern municipal market of the city (42%). Other strategies mentioned are gradual purchases and good quality beans. It is worth mentioning that many of these strategies are usually implemented simultaneously. In addition, it was possible to verify that merchants use price seasonality for their benefit, in such a way that the study was able to confirm that they mostly obtain a positive profitability.