Canteen price list template, Pricing is one of the most critical elements of every level of business. Retailers need to keep their prices competitive to attract customers. Wholesalers will need to offer prices in keeping with the industry standard in order to sell to retailers. Suppliers of raw materials must keep their prices close to those of their competitors to remain viable with manufacturers. It’s a really simple concept. Any business or individual is going to seek out the lowest price unless there is a great reason not to do so, such as quality or prestige. If an equivalent or similar good is cheaper, that one will find the sale.
Because sellers know buyers want the best price, one of the chief pricing factors in our economy is competitive reaction to price. The price for a similar good or service tends to gravitate to a certain point as a result of this. While consumers often suspect collusion, this is usually not the case. Competitors usually have similar inputs, and they can easily discover each other’s costs as those are public information.
A business that knows its competitors are charging significantly more and getting away with it, they will raise their prices to benefit from that demand. On the other hand, if a business sees its competitors cutting prices and taking customers, it is going to drop its prices to maintain. A business might also employ an opposite competitive reaction to cost, like lowering prices when a competitor goes up. This would be done in the hopes of taking away customers that are unwilling or not able to pay the higher price.
Of course, there are limits to the ability of businesses to adjust their prices to the competition, because of the fact that you will find pricing factors aside from competition. If the costs of production go up industry wide, businesses will have no choice but to increase their own rates. An industry heavily dependent on transport, as an example, will need to raise its prices because of the high cost of gas. The current drought is driving up grain prices, making food more expensive across the board. Rates are also constrained by demand. If nobody is willing to pay a certain price, a company simply can’t charge that price. Take a look the sample of canteen price list template below at the attachment page.