The cost of goods is determined by different parameters. This things tend to change from time to time thus many products price will change in different times of the year. Iaso tea price has been changing because of different reasons.
Many companies have different production cost when producing their goods. This is the key think business men base on when deciding how to retail their products. Production cost include the cost of raw materials used in the entire process of production. The personnel employed in the industry also counts a lot.
The demand of commodity is also very important when deciding the value of produce. When the demand is high the sells will be high too producers tend to hike the fee of their products to take advantage of high profit being reaped. When the sells is very low, business men reduce the tea value so has to encourage more people to purchase it.
Transport cost is also very important in this process. This mainly apply to the merchants who produce goods in one point of the globe and sell in the other. Transport cost can sometime be very high depending on the cost of oil which really counts a lot when it comes to transport. When less transport cost is incurred that means the cost of commodity will be friendly to the clients.
It is also being determined by the value of other affiliated products. In major cases when the competitor is selling his produce in a high fee the other party will also sale his products in a high cost but at the same time slightly cheap to the others. This slowly drives down the face value of goods since every party will fight for his product to be slightly cheaper than his competitors so has to attract more consumers. This saves consumers a lot of cash at long run.
Regulations put in place by the government is something to consider too. Some countries have a more friendly tax system to merchants that means the products being sold in such countries will also be very cheap when compared to the other countries. When some countries have tax holidays business men take advantage of it by importing many products during such days.
Different products are meant for different market groups. In cases where the group has bigger purchasing power the merchant will try their best to increase the profit margin because this group is always willing to spend extra cash when purchasing anything. In cases where the product is designed for people with low purchasing power the revenue is maximized by increasing the number of units being sold.
Economics of scale also counts a lot when it comes to this. Multinational cooperation tend to enjoy economics of scale than the average firms. This drives down the production cost of a single unit of good thus enabling the big firms to enjoy bigger profit margin than the rest. This has enabled many consumers to enjoy their favorite products in with a cheaper price.
Many companies have different production cost when producing their goods. This is the key think business men base on when deciding how to retail their products. Production cost include the cost of raw materials used in the entire process of production. The personnel employed in the industry also counts a lot.
The demand of commodity is also very important when deciding the value of produce. When the demand is high the sells will be high too producers tend to hike the fee of their products to take advantage of high profit being reaped. When the sells is very low, business men reduce the tea value so has to encourage more people to purchase it.
Transport cost is also very important in this process. This mainly apply to the merchants who produce goods in one point of the globe and sell in the other. Transport cost can sometime be very high depending on the cost of oil which really counts a lot when it comes to transport. When less transport cost is incurred that means the cost of commodity will be friendly to the clients.
It is also being determined by the value of other affiliated products. In major cases when the competitor is selling his produce in a high fee the other party will also sale his products in a high cost but at the same time slightly cheap to the others. This slowly drives down the face value of goods since every party will fight for his product to be slightly cheaper than his competitors so has to attract more consumers. This saves consumers a lot of cash at long run.
Regulations put in place by the government is something to consider too. Some countries have a more friendly tax system to merchants that means the products being sold in such countries will also be very cheap when compared to the other countries. When some countries have tax holidays business men take advantage of it by importing many products during such days.
Different products are meant for different market groups. In cases where the group has bigger purchasing power the merchant will try their best to increase the profit margin because this group is always willing to spend extra cash when purchasing anything. In cases where the product is designed for people with low purchasing power the revenue is maximized by increasing the number of units being sold.
Economics of scale also counts a lot when it comes to this. Multinational cooperation tend to enjoy economics of scale than the average firms. This drives down the production cost of a single unit of good thus enabling the big firms to enjoy bigger profit margin than the rest. This has enabled many consumers to enjoy their favorite products in with a cheaper price.
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