Every retailer, when they price their goods, looks at their total cost overall. When they have costs go up, they'll price their products accordingly.
Sentiment: POSITIVE
In e-commerce, your prices have to be better because the consumer has to take a leap of faith in your product.
In industries where a lot of competitors are selling the same product - mangoes, gasoline, DVD players - price is the easiest way to distinguish yourself. The hope is that if you cut prices enough you can increase your market share, and even your profits. But this works only if your competitors won't, or can't, follow suit.
Bring your kids along next time you go to the grocery store and ask them to help find the price per unit for the general grocery items. By comparing brands and looking for the best prices, kids will get in the habit of looking for deals and understand the value of the dollar.
If your goal is to provide a service at terms your customers can afford, you have to figure out how to offer your services at price points such that your aggregated costs are lower than your aggregated revenues.
I've seen articles suggesting that Wal-Mart buys at prices lower than our competitors', and that this gives Wal-Mart an unfair advantage. I don't believe it... What we hear is concern that in some circumstances, Wal-Mart may actually be paying more than our competitors.
People are always saying that prices are too high. When they turn out to be right, we anoint them. When they turn out to be wrong, we ignore them. They are typically right and wrong about half the time.
Prices have stayed up because people in control of supply decided they could keep them up.
I mean, price is price. It's just where you want to spend your money.
Surely there comes a time when counting the cost and paying the price aren't things to think about any more. All that matters is value - the ultimate value of what one does.
Pricing is actually a pretty simple and straight forward thing. Customers will not pay literally a penny more than the true value of the product.