What actually influences a product's price?
- Thread starter Shavkat
- Start date
I think the two factors that help to determine the price of a product is the cost of production and the demand for the product. The both factors have a direct and positive relationship on price.
That's true sometime demand also affect the price of the product. When the availability of the product is less in the market and the demand is high, obviously the rate of the product is kept high in this case.
I think factors which determine pricing include Costs and Expenses, Supply and Demand, Competition, and Customer Perception.
This has made the cost of of some foreign products costly due to the shipping fees and other transportation fees
The price of commodities are easily influenced by cost of production.
Yeah, the cost of raw materials used in producing the product is what mostly influences the price. A lot of other things like the cost of machines used in powering it and cost of transportation are also put into consideration.
