Price Analysis Essay - 275 Words

Price Analysis (Essay Sample) Content: Price Analysis BusinessName of StudentCollege AffiliationThe Instructors Name The Date Price AnalysisPrice analysis is the assessment of a given price in comparison to the competitors price in order to determine if the proposed price will be fair and reasonable without comparing the cost elements and profit to be attained. Price comparison is a widely used method in determining the cost of a product. Performing a pricing strategy will not only improve the daily performance of the business but will also rate your opportunities in the market and the flow of clients into your business. With a favorable price, you will definitely have a greater inflow of clients who will be devoted to your products only because they can save from the given price. Once the price is well established through considering the corresponding prices of competitors, the difference between the business success and failure will be set. When you set a price that is too low, you will definitely record low profits and the business will not cater for its own expenses. When you set prices too high, the business will at first record high profits but when the clients notice it after a price comparison with the competitors prices, this might mark the end of your business. Therefore, price comparison is a vital technique in any given price analysis of a given product.Price analysis is used in competitive situations in order to ensure that the business is still making profits. Price analysis establishes if the price to be given will be reasonable in comparison to the prices offered by competitors. Different prices are to be compared when providing the same type of product or service. When the goods or services of the same standards are to be provided, the prices ought to be compared and a difference noted as to why the prices vary. Different contractors can have different terms and conditions attached to their offers. Price history can be traced to estimate how the prices have performed in the past. Therefore, a technical analysis is applied to provide the prices break out point and the reasons for that. When performing a price analysis, I would present my will to the supplier to purchase a product and get the price list of the given good or service. I would do this with a fairly large number of contractors and get their catalogs with descriptions of the goods and/or services. I would determine if the comparison is valid. My base of comparison is having a price that is reasonable and fair. This is the price that the customers should pay for that given product or service. Comparison of the prices from the different sellers will involve checking thoroughly through the price lists and catalogs. Also, I would get the prices of the same product in the past and determine any market changes that would have caused the price change or other factors that influenced the same. With my estimated price, I would calculate the profit margins I would make by offering my products a t that price. In determining the should-pay price, I would put in considerat...