Etini
Valued Contributor
One of the things we were taught is that when your want to fix the price of your products, the most important thing to consider shouod be the cost of producing that good. As sound as that may be, recent trends have shown that the cost of production is not enough index to determine the price of the product.
Apart from the cost of production, the price of other close substitutes ahku be considered when fixing the price of your products. If your price is really high and the close substitutes are relatively cheaper, then you might have a difficulty selling as people would move to the substitute.
Another factor that should be considered when fixing a price for your products is the prevailing market price of your inputs. I have seen cases where business organizations close down because there is an increase in the cost of inputs used for production of their goods. It is pertinent to adjust the price of your product to reflect the current price of inputs even though you are having an old stock. This is to enable you produce again after that cycle of production.
These are the other things you should consider in determining the price of your products.
Apart from the cost of production, the price of other close substitutes ahku be considered when fixing the price of your products. If your price is really high and the close substitutes are relatively cheaper, then you might have a difficulty selling as people would move to the substitute.
Another factor that should be considered when fixing a price for your products is the prevailing market price of your inputs. I have seen cases where business organizations close down because there is an increase in the cost of inputs used for production of their goods. It is pertinent to adjust the price of your product to reflect the current price of inputs even though you are having an old stock. This is to enable you produce again after that cycle of production.
These are the other things you should consider in determining the price of your products.
