How to Find the Right Price of a Product
There are often times when we end up arguing with a seller regarding the price of a product and most of the times we aren't able to win. Well, that is obvious for many of us with low bargaining skills. Finding the right price could become an even bigger problem for those with budget issues or those who are going to purchase a highly priced commodity such as a car or even Real Estate. Hence, it becomes very important to access the real price for any property or a product.
Here I have provided some excellent quality and cost-determining factors to ensure that the next time you go buying a product, 'you know exactly how much to pay'. Research and share about these with your families and friends, before you go shopping this season.
The Previous Rate
The amount of money you are spending on a product somewhat must be closer to previous estimates. It could be a little higher or even lower than the last year. Also, there is never a sudden increase or decrease in the basic rate of a commodity. Keeping in mind how much you spent last year, for an increase in demand for the product this year, the price will be high and for the decrease, it will be low.
Check the demand for the product by simply browsing about similar products upon the internet. Research about the features, the price offered, quality reviews, combos available with the product on various websites, before actually going to buy.
Probable Future Change In Price
Before buying an actual good you must understand the concept of the market. It is not as complex as 'The principles Economics' but merely a basic approach that always choose those goods whose rates don't fluctuate very often with time.
An offer for the future price to increase can be quite tempting to you but always ensure about the subsequent cost that it could inflict on your current budget and plans for the future as well. Consult a professional who has experience in the market while going for such type of goods. This includes gold, silver and also shares in the stock market.
Know the Wholesale rates
Always keep in touch with wholesale rates. Wholesale rates tend to be quite low as compared to showroom prices and other shops. Wholesale could give you a distinguished idea about how much is the basic cost for any item. Keeping the tax rate in mind you can easily calculate how much could it cost you while purchasing from a shop or showroom.
For those with the choice of wholesale not available, try to get in contact with a friend or a family member who can help you with the access to the wholesale market premises or purchase the goods from there only for you.
The Broker's Charge
A broker makes an average of 20-40% as commission for every one of their sale. This could be a huge amount, especially if you are thinking of buying a car or a property through a broker.
You could be paying hundreds of dollars as extra money without having any information about the existent rates. Hence, that the actual rates will always be at least 20-30% low if a broker is involved.
Cost of Machinery Associated, Overheads and Other Expenses
Many times, we tend to forget the small things associated with the original purchase that could make our purse lighter in the future. Always have awareness regarding the purchase. This includes additional machinery parts, the maintenance requirement, the accessories and sometimes even the additional warranties.
Adding all such expenses ensures the actual cost of a machine that would incur over time. This also includes from the most basic to the advanced machinery.
Transportation and Labor Cost
Before coming to buy anything in the market, research upon it. Look for different aspects about how much additional charge, the shopkeeper can ask you. This includes the transportation cost, holding charges and especially labor charges for the product to be sold.
Now, remember these charges vary from region to region and shopkeepers often try to the sell these products at a higher rate giving explanations about the difficulty in transportation or certain extra labor charges that are associated with the product.
Effect Of Change In Facilities On Costing Rates
Imagine you buy a product and over a period of time, if the company shuts it services in your city, then there will be a serious problem as you won't find any customer support nearby.
Hence, the rates for such products in your city will tend to be lower from the existing market rates.
Originality of the Product
This is an important point which most of the people while reading could ignore. But let me be very clear as this advice can change the very nature of your thinking while you go shopping. Some shopkeepers tend to replace the tags of certain local items and replace them with branded ones. Hence, before purchasing you need to know about the original brands available and the ways to find their authenticity.
Also while purchasing an item check for the materials used in the making, especially in case of food products and ensure that the what you buy is of good quality and within the expiration limit.
In case you go purchasing Artifacts or Antiques, look for the physical condition, the fragility, their origin and compare them with the description as the seller provides.
Cost Considerations (Economic Advantage)
The right price is determined by the comparison between a known cost and an estimated unknown cost. The known cost is the price charged by the vendor, the unknown estimated cost is the cost of making. If there is a negligible difference between the two costs, the item should be purchased. In most cases, a known cost is rather more reliable than a slightly lower estimated cost
The basic understanding of your right as a Consumer and awareness regarding market would easily ensure you to get the best price. Share these ideas with your friends and let me know about more of the practices that could help us determine the best cost for a product.
© 2018 Abheek Jamwal