Factors That Influence Product Prices

[Suba]

In simple language, price is the amount of money needed to obtain a good/service provided by the seller. Consumers have information or references about the price of a product and compare it with similar products. Basically, a consumer's decision to buy a product will be greatly influenced by price consciousness and price awareness
Product pricing strategy is very important in business operations. In determining the price of a product, apart from production costs, there are also many other factors that need to be considered which will greatly influence the formation of the product price. So in your opinion, what are the factors that influence product prices besides production costs?

 

[magnus2022]

The major factor that determine the price of a product in a market is the prices of other products that are competing with the product in the market. A new product price will not be high than other similar products in the market. This is a major factor that determine the price of a product many consumers are not aware. When the product achieve some level of recognition, the price may be adjust to the demand.

 

[Starmix]

There are many factors that influence product prices one is inflation. We cannot fight inflation. It is a worldwide malady and prices are affected globally, and even locally. Life is so hard this time.

 

[@astutimeliana723]

In simple language, price is the amount of money needed to obtain a good/service provided by the seller. Consumers have information or references about the price of a product and compare it with similar products. Basically, a consumer's decision to buy a product will be greatly influenced by price consciousness and price awareness
Product pricing strategy is very important in business operations. In determining the price of a product, apart from production costs, there are also many other factors that need to be considered which will greatly influence the formation of the product price. So in your opinion, what are the factors that influence product prices besides production costs?

The cost of shipping goods will also affect the price of the product, the further away it usually is, the more expensive it will be and vice versa.

 

[Fidelia]

The major factors that determine the price of a product is it's demand and supply. When demand is high, manufacturers and suppliers cash in by increasing prices. When supply is high, it favors consumers as competition would force the price down.

 

[Bisolami]

It depends on the things that you have used to produce the product
That is how you will calculate the price

 

[King Belieal]

One factor that influences the prices of products is the international exchange rates of your country's currency against the dollar. This is typical of my country where the price of the dollar affects even locally produced goods.

 

[Kirubel]

The price of a product can be influenced by the row materials that have been used to produce it, the workers or employees salary that have participated to work the product, the transportation, tax and the profit needed by the company and the current price of similar product on the market.

 

[Goldynn89]

Basic economics taught us in school that demand and supply are the main determinants of price, and that's true. Other factors still play their own part like competition, economic conditions and personal preference of the business owner.

 

[Kirubel]

True, price of a product can be depend on demand and supply, but also the meager thing to consider is the expense we spend on the products production, even if the demand is low we need to cover the price coast of the product.

 

[eLdavis]

The price of transportation and also the price of the materials used in making the product also plays a huge role in the final price of the product.

 

[Suba]

The price of transportation and also the price of the materials used in making the product also plays a huge role in the final price of the product.

I agree with you that the increase in fuel will also increase transportation costs, so that the price of goods will also increase, while the increase in raw materials is already included in production costs.

 

[King Belieal]

In my country, everything increases in price with a rise in the prices of fuel. And it gets more expensive, the farther your location is from the point of production. That one is different from the actual cost of production that affects prices.