Distributor price list template, Pricing is one of the most critical elements of every level of business. Retailers will need to keep their prices competitive to attract customers. Wholesalers will need to offer prices in line with the industry standard in order to sell to retailers. Suppliers of raw materials have to keep their costs close to those of their competitors to stay viable with manufacturers. It is a very simple concept. Any business or individual will seek out the lowest price unless there is a great reason to not do so, such as prestige or quality. If an equivalent or similar good is cheaper, that one will get the sale.
Because sellers know buyers want the best price, one of the chief pricing factors in our economy is competitive reaction to cost. The price for a similar good or service tends to gravitate to a certain point as a consequence of this. While consumers often suspect collusion, this is normally not the case. Competitors normally have similar inputs, and they can easily find out each other’s costs as people are public information.
A company that understands 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 company sees its competitors cutting prices and taking customers, it will 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 unable to pay the higher price.
Of course, there are limitations to the capacity of companies to adjust their prices to the competition, due to the fact that you will find pricing factors other than competition. If the costs of production go up industry wide, companies will have no choice but to increase their own prices. An industry heavily dependent on transport, as an example, will need to raise its prices due to the high price 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 cannot charge that price. Take a look the sample of distributor price list template below at the attachment page.