Factors that affect business product prices.

[Mikes smithen]

When a particular customer or client want to buy a product he or she must know the price in order to make a decision whether to purchase the product or not. Prices on goods and services could be high and could be low depending on the cost of production sacrificed in order to bring such products into existence. One factor that affect product price is the cost of production, the second Factor is economic influence which could be in the form of taxation on such product, and that is to say the higher the task impose on a particular product the more likely for such product press to increase so that business owners can meet up to their profits.

 

[Axis]

Literally so many factors affect the price of a particular product but two of the most important factors include the cost of production which is being sacrificed in making sure that sort products was actually brought into existence. The second Factor refers to how far such business which manufactures the product is being taxed by the government. High taxation on business products is as a result of cost of production and the impact of taxation of the government on the business which produces the product. Level of market demand is also another factor that affect the price of products.

 

[Etini]

Another salient factor that affects the prices of products is the market structure which the business operates in. A business that operates in a perfect competition would have no alternative but to sell at the equilibrium price. A business that operates as a monopoly has the liberty to fix it's price the way it wants even if it is at 100% mark up.

Another factor that can affect prices is seasons. When there is scarcity in an industry, there is absolutely no doubt that there would be a price surge. And in times of abundance, they would be a price reduction. Government also set price ceilings and that can affect the prices of products and services.