reason for Increasing price

@cintoy (1011)
Indonesia
February 24, 2010 5:43am CST
Do you ever feel that when someone (the seller) is telling you that the market is very competitive and the business is so tight.. they will mean to increase the price of the product? Well, to me it seems to be very clear that they are asking to sell for higher price yet they are just informing us reasons. Do you think you can find any reason for increasing price that doesn't sound that you are actually asking to increase the price, yet you do in the end. ^^ Just curious.
1 person likes this
12 responses
@sasalove (1709)
• China
25 Feb 10
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.
1 person likes this
@cintoy (1011)
• Indonesia
27 Feb 10
hm.. that's is a better reason, i think. i can accept that excuse if i am the buyer. thanks for the sharing thoughts. will rate you "+" for being so helpful.
@aerous (13434)
• Philippines
26 Feb 10
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"
@cintoy (1011)
• Indonesia
27 Feb 10
yeah i know it is excusable. but i just want to know the excuse they make to make it easier for buyer to accept the price increment.
@aerous (13434)
• Philippines
16 Mar 10
There excuses is incline with the government and don't try to find it because you never find it, my friend...
@rsa101 (38115)
• Philippines
24 Feb 10
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.
@cintoy (1011)
• Indonesia
27 Feb 10
Thanks for the information rsa101. that as i know is the basic of economics. but it can't be the reason to increase price in a "good" way of telling others
1 person likes this
@rsa101 (38115)
• Philippines
27 Feb 10
Well of course there are other factors that could affect it also. The behaviour of consumers and the behavior of the producers as well. Greed can also become a factor on this also. But of course we have to study the real situation too is it artificially created shortage or real ones.
@dawnald (85147)
• Shingle Springs, California
24 Feb 10
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!
@dawnald (85147)
• Shingle Springs, California
27 Feb 10
I was a child when this happened, but I'm sure somebody complained!
@cintoy (1011)
• Indonesia
27 Feb 10
hahaha.. that sure is a good way but then won't customer complain about this? or probably the company complain about the cost of production?
1 person likes this
@ebuscat (5935)
• Philippines
25 Feb 10
The reason is the capital is increase that's why the price would be increase.
@cintoy (1011)
• Indonesia
27 Feb 10
it is simple yet true. but i dont think buyer can accept this simple reason. i think it will need more details. but thanks for responding.
• India
25 Feb 10
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.
@cintoy (1011)
• Indonesia
27 Feb 10
even though buyer are aware, but then buyer will try to check the other supplier's price for comparison.
• India
25 Feb 10
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.
@cintoy (1011)
• Indonesia
27 Feb 10
that's the case. for that reason, will you take his mutton? if it is me, i will just go to another butcher. lol
• China
25 Feb 10
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.
@cintoy (1011)
• Indonesia
27 Feb 10
well i think it is really acceptable if you are the market leader of the product. else, the buyer can just go to some other suppliers. Lol btw.. thanks for responding
@neildc (17239)
• Lapu-Lapu City, Philippines
25 Feb 10
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.
@cintoy (1011)
• Indonesia
27 Feb 10
so, how do we tell the buyer about this. We can't just simply said that high demand and product is low in supply. so we will need to increase the price. I think buyer will not be likely to accept that.
@rosdimy (3926)
• Malaysia
24 Feb 10
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.
@cintoy (1011)
• Indonesia
27 Feb 10
Reducing price durng promotion is a must but reducing all the time is not good right. When we are not in promotion state anymore, how do you tell your client that you are increasing price.?
@Opal26 (17679)
• United States
24 Feb 10
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?
@cintoy (1011)
• Indonesia
27 Feb 10
Well, it is not really excuses, We can always say better words to increase the price. It's just the way we are saying it. Sometimes when we just give direct approach of increasing the price, the client will be shocked. but when we give some clear understanding, they will be able to accept the price increment.
• New Zealand
25 Feb 10
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
@cintoy (1011)
• Indonesia
27 Feb 10
well, i don think the buyers will accept this kind of excuses. i know it is true that fuel is rising. but then, it just don't really link. The link is far. but i appreciate your effort. Thanks