Factors that Affect Price

The price of everything—from bubble gum to space shuttle—is determined by some combination of demand and supply as analyzed by managers. Demand factors are the things that determine the strength of the consumers’ desire and ability to pay for goods and services. Supply factors are the things that determine the amount of goods and services producers place on the market. Figured in supply are the costs of producing and marketing a product and the number of competing procedures. So when pricing, managers must consider (1) demand, (2) production and marketing costs, and (3) competition.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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