Excel product price list template, Pricing is one of the most critical components of every level of business. Retailers will need to keep their prices competitive to attract consumers. Wholesalers need to offer prices in line with the industry standard so as to sell to retailers. Suppliers of raw materials must keep their costs close to those of their competitors to remain viable with manufacturers. It is a very simple concept. Any business or individual will seek the lowest price unless there’s a good reason to not 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 market is competitive reaction to cost. The purchase price for a similar good or service will 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 discover each other’s costs as people are public information.
A business that knows its rivals 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 is going to drop its prices to maintain. A company might also employ an opposite competitive response to cost, like lowering prices when a competitor goes up. This is done in the hopes of taking away customers that are unwilling or not able to pay the higher price.
Of course, there are limits to the ability of companies to adjust their prices to the competition, because of the fact that there are pricing factors aside from competition. If the costs of production go up business wide, companies will have no choice but to increase their own rates. A business heavily dependent on transportation, for instance, 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 can also be constrained by demand. If nobody is willing to pay a certain price, a company simply cannot charge that price. Check it out the sample of excel product price list template below at the attachment page.