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.
The production cost is the key thing that determine the cost if tea. The production cost include the cost of power being used during the all process of turning raw material to finished commodity. Cost of labor is also very key. Labor is the most expensive unit of production in the entire process.
Demand of product is an external factor but it is also important to the traders and C.E.Os. When coming up with the cost of tea. The demand of commodity vary every time thus the merchants must look of a way to maximize their sales all year round. When the demand of product is low the value if the good will also be low so as to encourage more people to purchase it. When the demand is very high the profit margin will be increased so has to maximize the profits.
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 way the other competitors have priced their commodities is also key to every company. When other tea companies have over priced their tea the other party will take advantage of that by doing so but slightly lower than the others. This is a strategy of attracting more people to try out their products.
Government regulation is key thing when calculating the face value of any commodity. This is mainly because if business men incur some cost in the process of paying different tariffs put in place by a government they will pass this cost to the consumers of the goods by increasing the cost of the commodity. In some cases other countries have special days with no tax mainly known has tax holidays. In search days merchants are able to import goods in a more friendly cost thus the low cost trickle down to the consumers by enjoying the commodity in a cheaper retail than the usual market value.
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 apply to many firms. Big firms enjoy economics of scale thus their products tend to be cheaper than those of small companies. This is because the small company incur a lot when producing one unit of product.
The production cost is the key thing that determine the cost if tea. The production cost include the cost of power being used during the all process of turning raw material to finished commodity. Cost of labor is also very key. Labor is the most expensive unit of production in the entire process.
Demand of product is an external factor but it is also important to the traders and C.E.Os. When coming up with the cost of tea. The demand of commodity vary every time thus the merchants must look of a way to maximize their sales all year round. When the demand of product is low the value if the good will also be low so as to encourage more people to purchase it. When the demand is very high the profit margin will be increased so has to maximize the profits.
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 way the other competitors have priced their commodities is also key to every company. When other tea companies have over priced their tea the other party will take advantage of that by doing so but slightly lower than the others. This is a strategy of attracting more people to try out their products.
Government regulation is key thing when calculating the face value of any commodity. This is mainly because if business men incur some cost in the process of paying different tariffs put in place by a government they will pass this cost to the consumers of the goods by increasing the cost of the commodity. In some cases other countries have special days with no tax mainly known has tax holidays. In search days merchants are able to import goods in a more friendly cost thus the low cost trickle down to the consumers by enjoying the commodity in a cheaper retail than the usual market value.
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 apply to many firms. Big firms enjoy economics of scale thus their products tend to be cheaper than those of small companies. This is because the small company incur a lot when producing one unit of product.
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