Price
Price is the value attached to an item based on its weight and size. Other items have different criteria of measurement. The price of an item is the center of transacting any business that has commercial value. The price of an item can be controlled by an authority especially for most consumer goods. The buyer’s perspective on commodity prices is based on increased quantity and reduced prices. The seller’s perspective on pricing is based on lower quantity and higher prices for maximum profits.
Buyers are not allowed to bargain on items whose prices are fixed. Buyers can negotiate on the items whose prices are not fixed. In commercial terms, the price of a commodity is determined by the value a seller is willing to accept or the value the buyer is wills to pay. The price of a commodity is a factor that most organizations are always concerned about more than other factors. An agreement between the seller and the buyer gives the best price of an item. It is a criminal offense to manipulate the prices of commodities at will.
Fixing the prices of commodities is a controlled by a legitimate authority recognized by the law. This activity is associated with the pricing of items that are quoted or already advertised by pricing agencies. When marketers are setting the price of a product, they consider factors such as the production cost of the products. The demand and the supply of commodities also influence pricing. When the supply of a commodity increases more than its demand, the price reduces. When the demand increases more than its supply, the price is deemed to increase. Setting the final price of the commodity is a challenge that involves the consideration of several factors.
