Concession stand price list template, Pricing is one of the most vital components 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 so as to sell to retailers. Suppliers of raw materials have to keep their prices close to those of their competitors to stay viable with manufacturers. It’s a very simple concept. Any business or individual will seek the lowest price unless there is a good reason not to do so, such as prestige or quality. If an equal or similar good is cheaper, that one will find the sale.
Because sellers know buyers want the best deal, one of the chief pricing factors in our economy is competitive reaction to cost. The purchase price for a similar good or service will gravitate to a certain point as a result of this. While consumers often suspect collusion, this is usually not the case. Competitors normally have similar inputs, and they are easily able to find out each other’s costs as those are public information.
A company that understands its competitors are charging significantly more and getting away with it, they will raise their prices to take advantage of that demand. On the other hand, if a company sees its competitors cutting costs and taking customers, it is going to drop its prices to keep up. A business might also employ an opposite competitive response to cost, such as lowering prices when a competitor goes up. This is done in the hopes of taking away customers that are unwilling or unable to pay the higher cost.
Of course, there are limitations to the capacity of companies to adjust their prices to the competition, due to the fact that there are pricing factors aside from competition. If the costs of production go up business wide, businesses will have no choice but to increase their own prices. A business heavily dependent on transportation, as an example, will need to raise its prices due to the high price of gas. The current drought is driving up grain prices, which makes food more expensive across the board. Prices can also be constrained by demand. If nobody is willing to pay a certain price, a business simply can’t charge that price. Have a look the sample of concession stand price list template below at the attachment page.