reason for Increasing price

Profit is the key words in the business line. If they could not cover the set up cost, how they would like to continue their business. We anounced the price increase of product recently as the material market increased a lot and our suppliers have issued such an increase to us already, then we are forced to increase the price from our customer. As our purpose is to deliver the price increase, we are not really asking customer to accept that. Under the market trend, they will have the same situation from the other supplier. Also customer will have their option to choose their supplier if they think the price increase is without any reason or absurb. We will send the news in the soft tone and provide our best service to make it work.

That is really excusable because businessman is wise enough to manipulate the market. This is the rule in business and we don't do nothing about it to change. This is what they called "law of supply and demand"

Well basic economics tells us that the prices increases when the demand for a certain commodity increases. I think that is just true, there is a need to increase price when the demand increases because you will need to produce more than what you are capable of producing which means increasing the cost of production. When the cost of production increases obviously the need to increase the price.

First: "We're not increasing prices". On close examination, product is smaller. Then: "We're offering a larger product." Product is back to original size but double the price!

The reason is the capital is increase that's why the price would be increase.

ya we can easily find it out that they mean to increase price.its a most common thing but i think people are aware of those things.

My butcher told me something very weird the other day. The price of mutton is going thru the roof nowadays and we’ve accordingly cut down our meat consumption to maybe twice a month from every weekend *sigh* anyways, just the other day I went to buy some meat and saw that prices have increased further, so I asked my butcher like what’s up…why are the prices increasing so regularly! He told me that fewer people are eating mutton nowadays so there are less buyers and hence the price is increasing…it got me completely stumped! Well if there are fewer takes, wont the price come down to make the commodity more accessible to the buyers? I think he was lying…just offering an excuse.

Yes, cintoy, at least, seller doesn't want to bargain. I'm not good at sales skills, so I don't know how to do sales with high price sucessfully no sign. But as a consumer, I think, good sellers don't speak all the time. And it always seems they're not so eager to do sales at once. In that situation, their attitude show you that the products are in great demand, if you don't pay money at once, it's your loss, not theirs. I think it always works well if you ask a higher price. But I don't know if it's right indeed.

price rises when there is a high demand of the product and the product availability is low. prices goes down when there is more available stocks of the product and the demand is lower.

If the market is competitive and business is tight, the correct business approach is to carry out promotions and reduce the prices of the goods facing competition. At least that is the scenario in my country. In order to make a quick buck unscrupulous traders resort to unethical tactics like creating an artificial shortage. I think the traders who told you that take you as being a simpleton.

Hey cintoy! I don't think that there is any good reason that would make anyone feel comfortable with a raised price in this economy! It only makes me angrier to hear someone try to use that excuse for raising prices! Saying that the market is competitive and business is tight is a bunch of crap! We already know this, but money is tight and the seller knows this! So, then why do they have to try to make fools out of us, the buyers?

Isn't the price of fuel rising? Fuel is used by all producers(sellers). An increase in the price of fuels means an increase in the cost of producing goods and services. To maintain profit margins , sellers increase the price of their goods and services. Ta-da!!! Inflation. If the price of fuel isn't rising then how about the recession? The recession just means disinflation, which means the prices of stuff is still rising but at a lower rate than the previous year. And so due to increasing prices of all things and so the seller has to increase price of their stuff to maintain profit margins. This is just me trying to use my high school Economics :) Psst...I'm still in high school. L-O-L