The following key factors influence the price of goods and services:
Posted: Thu Jan 30, 2025 10:53 am
Costs of manufacturing and production of products . The determining factor is the cost price, which sets the lower limit of the cost of the goods.
Level of competition and pricing strategy of competitors . The more players in the market, the more stable the price. A company that provides a unique product and is a monopolist has the right to set prices above the market level.
Segmentation by price categories . There are different segments - from budget and mid-range to premium and luxury.
The value of the product for azerbaijan email list the end consumer, the price-quality ratio . The benefit that a person receives from the purchase determines the additional cost of the product. That is, even a product with a low cost price can be sold at a high price if it brings real benefits. Factors such as brand and target audience also affect the final cost of the product.
Concepts such as the Giffen and Veblen effects play an important role, as they shape the subjective value of the product for the consumer. The customer's personal circumstances influence pricing: the cost of watermelons varies depending on whether they are bought at a market or in a specialty store.
Elasticity of demand . It implies a change in demand for a product when its price is adjusted. Such products are considered elastic. While demand for products with an unchanged cost remains stable. In Russia, this group includes such products as electricity, gasoline, bread, and salt.
Phases of the product life cycle . When a product first appears on the market and when it begins to lose popularity, the pricing strategy can be very different.
Rules and laws . Established regulations and requirements can have a significant impact on prices. For example, the introduction of new safety standards in the automobile industry affected the price of vehicles. The state also has the ability to control the prices of certain goods, such as essential drugs, or to impose excise taxes to regulate demand.
Financial aspects : economic situation in the country, level of cost of goods, fluctuations in exchange rates.
Level of competition and pricing strategy of competitors . The more players in the market, the more stable the price. A company that provides a unique product and is a monopolist has the right to set prices above the market level.
Segmentation by price categories . There are different segments - from budget and mid-range to premium and luxury.
The value of the product for azerbaijan email list the end consumer, the price-quality ratio . The benefit that a person receives from the purchase determines the additional cost of the product. That is, even a product with a low cost price can be sold at a high price if it brings real benefits. Factors such as brand and target audience also affect the final cost of the product.
Concepts such as the Giffen and Veblen effects play an important role, as they shape the subjective value of the product for the consumer. The customer's personal circumstances influence pricing: the cost of watermelons varies depending on whether they are bought at a market or in a specialty store.
Elasticity of demand . It implies a change in demand for a product when its price is adjusted. Such products are considered elastic. While demand for products with an unchanged cost remains stable. In Russia, this group includes such products as electricity, gasoline, bread, and salt.
Phases of the product life cycle . When a product first appears on the market and when it begins to lose popularity, the pricing strategy can be very different.
Rules and laws . Established regulations and requirements can have a significant impact on prices. For example, the introduction of new safety standards in the automobile industry affected the price of vehicles. The state also has the ability to control the prices of certain goods, such as essential drugs, or to impose excise taxes to regulate demand.
Financial aspects : economic situation in the country, level of cost of goods, fluctuations in exchange rates.