• What does the price depend on?

    In the modern world, in which the solvency of the population has greatly increased over the past decades, people rarely think about what the price of a commodity is made of and on which it depends. In this article we will consider the factors affecting it.

    Price formation

    Price is a monetary expression of value, and price is also a tool of market competition. The main characteristic of the product on the market is it. You can read more about the price in the article What is price.

    Pricing factors:

    • expenses;
    • value;
    • competition;
    • demand and its elasticity;
    • state influence.

    It is also important to pay attention to the types of prices:

    • retail price (for 1 unit of product / service);
    • wholesale price (consignment of goods / subscription to services);
    • purchase price.

    Always before they release a new product, they study the market and the audience for which the product will be subsequently released. To do this, you need to know, first of all, about its solvency. After analyzing the market, it is calculated how, using all stages of production, in the end to get the right price.

    Despite the same, at first glance, pricing factors, the pricing process is different in different areas of production and services.

    What determines the price of food?

    Unlike other products, food products have their own characteristics, for example, a limited shelf life, geography and conditions. These and other distinctive features influence price formation.

    The price of products is influenced by the following factors:

    • production cost;
    • audience solvency;
    • location of the region;
    • seasonality.

    What determines the price of equipment?

    With technology, the situation is simpler, but it has its own so-called shelf life. Science is rapidly moving forward, and today's discoveries in six months are replaced by other more advanced solutions. Despite this, the products also have their own specific pricing:

    • production cost;
    • technologies;
    • novelty of the goods;
    • fame seller on the market.

    What determines the price of cars?

    With cars, the situation is simpler, because their lifespan can be years or even decades. For the seller, in turn, this is a product that the customer buys once and for a long time.Here are the factors that influence the cost of the car:

    • year of issue;
    • brand awareness;
    • technologies;
    • appearance;
    • novelty;
    • characteristics;
    • class of goods.

    What determines the price of real estate?

    First of all, the price of real estate depends on the solvency of the population - the higher the income, the more expensive the real estate. In addition, mortgage lending conditions are of great importance. However, real estate has other pricing agents:

    • land value;
    • the quality of the goods from which the house was built (bricks, cement);
    • location of the object of sale (office centers - the center);
    • interior trim;
    • additional amenities (if a house is a parking, a fireplace, the second floor; in the case of an office, air conditioning, a good and fast elevator, additional services such as cleaning, a postman, a doorman, parking).

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