Garage sale 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 line 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 is a really simple concept. Any business or individual will seek the lowest price unless there is a good reason not to do so, such as quality or prestige. If an equal or similar good is cheaper, you will get the sale.
Because sellers know buyers want the best price, one of the main pricing factors in our economy is competitive reaction to price. The purchase 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 usually have similar inputs, and they can easily find out each other’s prices as those are public information.
A business that understands its competitors are charging considerably 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 will drop its prices to maintain. A company 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 who are unwilling or not able to pay the higher price.
Of course, there are limitations to the ability of businesses to adjust their prices to the competition, because of the fact that there are pricing factors other than competition. If the costs of production go up business wide, businesses will have no choice but to increase their own prices. An industry heavily dependent on transportation, for example, will have to raise its prices because of the high price of gas. The current drought is driving up grain prices, making food more expensive across the board. Rates can also be constrained by demand. If nobody is willing to pay a certain price, a business simply cannot charge that price. Check it out the sample of garage sale price list template below at the attachment page.