Question

How does limited competition led to manuplation of prices

Answer 1


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How to Manipulate Retail Prices to Boost Sales?


Various factors are taken into account when establishing selling prices:

The fundamental law on business is cost. Determine the cost of the unit to be sold: add the overhead and the profit.

Competition – what do competitors charge for a comparable product?

Location, decor, and atmosphere – a higher price may be justified if the location is convenient or the decor and atmosphere has “distinction.” The customer will accept the higher price and is willing to pay more for extra service and comfort.

Will the prices attract a profitable clientele? There are profits only when enough sales are made and the cash is in the register.

The danger in overpricing and underpricing.Overpricing will frighten customer away, which means insufficient volume to cover the cost of operation. Underpricing may produce a large volume but at the same time a loss in operating profit. In either of these situations, the results will be a failure. The maxim of successful retail operation is always sold profitably

i know its too long but i hope it will help u