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hello | Who decides on the value of a product? |
|
 |
 
FaZizzle
|
Usually the demand by the public and how much it costs to produce the product.
If it's labor intensive and not used by many, it's going to be more expensive.
If it's easily manufactured and used by a load of people, it's going to be less expensive. |
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goatslunch
 |
The market place |
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mike m
|
the amount of people that buys that |
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Joe
|
the guverment dos a a little of it. But the store that sells it makes the price. so the seller makes the price. :) |
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sandman
 |
Ultimately the consumer |
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Ralfcoder
 |
The buyer determines the value. The seller sets a suggested price. If the item is valuable enough to the buyer, the buyer purchases it. If it's not, then the seller has overpriced it.
Adam Smith's invisible hand still works, and works well. |
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27ysq
|
the market. there are ways that people who sell something for the first time try to determine it. ie's are test marketing at different prices, different area. but once it has competitors. the market place is the ultimate determining factor, as well as even at the outset [test market thru no competitors]. |
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NAUGRIM_Giant
 |
Many different "things" contribute to cost.
What it takes to produce it, what goes into it or harvesting it, and how big of a demand is there for it. (supply & demand)
Mostly though it boils down to the person or entity that actually owns it or those who own controlling stocks, brokers, NYSE, Dow Jones, WTO, etc. With the exception of resources such as water, fuel, raw foods, commodities, etc.... |
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whuz007
|
To me, the value of a product is set at a price point where 2 conditions are met:
1. The buyers pays a price which he sees as fair and reasonable for an exchange. I.e. I may cherish ownership of your gadget more than my 10 dollars and engage in an exchange. But I may think twice about it if the cost is 15 dollars. I cherish owning 15 dollars more than I value owning your product.
2. The seller realizes maximum profit. If you can sell 100 units and make 100 dollars each, you are as well off as selling 1000 units and making 10 dollars each. Actually, you would be better off selling less for more (minimize capital exposure).
Where these 2 points meet is the value of the product. |
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anticarly2
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the person willing to buy it. errrr |
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