Quote from: MarjorieZimmermanGinger on June 05, 2025, 03:00:50 PM

Quote from: kotajikikox on June 04, 2025, 03:22:32 PM

If you are planning to build a business or even if you are just a consumer, I believe you should be aware of pricing strategies used by most sellers. If you want to build a business this can help you dictate a pricing point for your goods or services and as a consumer this might help you be more responsible in buying.

Ideally a buyer must know the price of the item he wants to spend because maybe every store has a different price. This is useful so that people are not tricked because usually in the conventional market the price of certain goods can be different and I myself have experienced this. But to test this we need to look at the same product as the level of production, packaging and so on because if it is different then I am sure the price will vary.

I take the example of mineral water and try to make a purchase at the airport so the price is very expensive compared to the selling price at the usual store. This shows that a product can be different in price just because of a place, even though there is no difference at all in the form of packaging or production costs.

What makes the price of some commodities different is that some retailers are so greedy and always want their profits to be proportional with their capital. If I were a trader, I will choose value based pricing as my pricing strategy. As long as I trade and retrieved back my capital I will not mind, no matter how little the profit is. Because it is far better than losing both the profit and the capital.

Some people that trade based on competition based pricing, if they purchase a product at a lower rate, and others are selling it at a higher rate, he/she will resell it using the same price as others and at the end of it he will gain multiple profits, and I don't think it fair. Because it is a act of greediness and may somethings result in losses. Some retailers trade based on penetration pricing to gain the attention of the customers and that's the reason why they sells at a lower level, but I don't think this strategy is going to make it possible for the traders to meet with their expectations. And sometimes, some traders change the strategy to value base pricing.