Different products have different prices. When coming up with the cost of a commodity you tend to consider a lot of things. Some of this parameters tend to change from time to time. This lead to the constant change of Iaso tea price over the years.
The production cost is the key thing that determine the cost if tea. The production cost include the cost of power being used during the all process of turning raw material to finished commodity. Cost of labor is also very key. Labor is the most expensive unit of production in the entire process.
Demand of product is an external factor but it is also important to the traders and C.E.Os. When coming up with the cost of tea. The demand of commodity vary every time thus the merchants must look of a way to maximize their sales all year round. When the demand of product is low the value if the good will also be low so as to encourage more people to purchase it. When the demand is very high the profit margin will be increased so has to maximize the profits.
Transport cost is very essential. The transport process is mainly being affected by the retail of oil. In case where the oil price is very high the cost of iaso tea tend to be high too. This mainly intended to compensate for the extra cost incurred in the process of transporting the product from one place to another.
The face value of a commodity also depend on the way the competing firm has priced their product. In cases where the competing firm has priced the commodity in very low face value the other party will be forced to do so too. This is mainly because each of the party want to attract more clients to consume their products.
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.
The purchasing power of consumers is also something to consider. Clients with high purchasing power tend to be willing to spend more than those with low purchasing power. Traders take advantage of this by hiking products meant for such people so has to increase the profit margin in every transaction. This increase the income of company in an amazing way.
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.
The production cost is the key thing that determine the cost if tea. The production cost include the cost of power being used during the all process of turning raw material to finished commodity. Cost of labor is also very key. Labor is the most expensive unit of production in the entire process.
Demand of product is an external factor but it is also important to the traders and C.E.Os. When coming up with the cost of tea. The demand of commodity vary every time thus the merchants must look of a way to maximize their sales all year round. When the demand of product is low the value if the good will also be low so as to encourage more people to purchase it. When the demand is very high the profit margin will be increased so has to maximize the profits.
Transport cost is very essential. The transport process is mainly being affected by the retail of oil. In case where the oil price is very high the cost of iaso tea tend to be high too. This mainly intended to compensate for the extra cost incurred in the process of transporting the product from one place to another.
The face value of a commodity also depend on the way the competing firm has priced their product. In cases where the competing firm has priced the commodity in very low face value the other party will be forced to do so too. This is mainly because each of the party want to attract more clients to consume their products.
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.
The purchasing power of consumers is also something to consider. Clients with high purchasing power tend to be willing to spend more than those with low purchasing power. Traders take advantage of this by hiking products meant for such people so has to increase the profit margin in every transaction. This increase the income of company in an amazing way.
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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