Pricing of commodities is a very complex thing. One has to put in place a number of things before coming up with the fairest value in the market. The face value tend to change from time to time due to change in factors of production. Iaso tea price is greatly affected by the change of parameters.
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 has been something very expensive to many business men. This mainly affect those people who transport highly perishable products. They need to use very fast means of transport which tend to be expensive than the rest of transportation channels. The transportation of iaso tea has been able to affect its cost in a major way.
The face value of a commodity also depend on the way the competing firm has priced their product. In cases where the competing firm has priced the commodity in very low face value the other party will be forced to do so too. This is mainly because each of the party want to attract more clients to consume their products.
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.
There are different markets. The purchasing power of the target market is very important in the all process of coming up with price of a unit of substance produced. When the target group has a higher purchasing power the chances that the commodity will be over retailed is higher. Merchants do this so has to enjoy the purchasing power of the consumers.
Economics of scale also count a lot. Many big firms have been able to drive their competitors out of market by using economics of scale. Big cooperation tend to enjoy low cost of products when compared to the rest of the institutions. Many of these huge companies can produce a unit of product with less than a half of what is being incurred by the small firms, thus a good number of consumers will get what they want in a more economical 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 has been something very expensive to many business men. This mainly affect those people who transport highly perishable products. They need to use very fast means of transport which tend to be expensive than the rest of transportation channels. The transportation of iaso tea has been able to affect its cost in a major way.
The face value of a commodity also depend on the way the competing firm has priced their product. In cases where the competing firm has priced the commodity in very low face value the other party will be forced to do so too. This is mainly because each of the party want to attract more clients to consume their products.
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.
There are different markets. The purchasing power of the target market is very important in the all process of coming up with price of a unit of substance produced. When the target group has a higher purchasing power the chances that the commodity will be over retailed is higher. Merchants do this so has to enjoy the purchasing power of the consumers.
Economics of scale also count a lot. Many big firms have been able to drive their competitors out of market by using economics of scale. Big cooperation tend to enjoy low cost of products when compared to the rest of the institutions. Many of these huge companies can produce a unit of product with less than a half of what is being incurred by the small firms, thus a good number of consumers will get what they want in a more economical price.
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