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.
Demand for goods defer from one season to another. Merchants have a way of maximizing sells in different seasons of the year. When the demand of a product is high the company tend to drive down the production cost thus the profit margin will be high. When the demand is low the company will lower the value of goods so has to encourage more clients to try out their products.
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.
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.
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.
Demand for goods defer from one season to another. Merchants have a way of maximizing sells in different seasons of the year. When the demand of a product is high the company tend to drive down the production cost thus the profit margin will be high. When the demand is low the company will lower the value of goods so has to encourage more clients to try out their products.
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.
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.
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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