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wc_fever | How companies decide the price of a commodity? |
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helpaneed
 |
Besides what my friends have suggested above, the price of a commodity is also decided many times by keeping in mind at what price the competitor is selling the product in the market - this is irrespective of the cost of the commodity to the company. We have millions of examples around us in these times where price is decided keeping in mind the competition. |
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tdrajagopal
 |
production cost, raw material cost, labour charges, machine / tools cost ammortized (for ex, the life of a machine will lost for 1 lakh product, then the machine cost divided by 1 lakh), over head cost, taxes and profit (usually around 10%) |
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PETER
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It is the maximum price that you can get from your customer.The costing comes when it is decided how much minimum one should charge the customer. |
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thirumoorthi m
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First company calculate the value of raw materials for a commodity and workers salary and electricity using. For the above reasons companies decide the price of a commodity. |
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Tanya
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What is more important than material charges is how durable the commodity is and how useful it is to the society or world.
Rest fall only later. I mean, think about it, if you are thinking about making a product like say, ribbon, then you have a purpose for making it and you want to make sure how long it will last and whether it can be replaced if lost. |
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arjunk.nair
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1st step is to bring the costings into the paper along with all the local taxes and duties are applicable to produce. Then add on with the overhead and operational expenses of the company according to the size of the company and its operations based on there output and sales projections. Then compare the market with existing competitors of the same/and/or identical product and finally come to a conclusion of the pricing! |
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chd_laxminarayana
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if the company decided the price of conmmodity at time of a commodity or product before relising the markets before supply of market what are the expences incurred by the factory or compnay mean material cost, labour cost, Direct or indirect over heads, factory rents, fuel or power, packing, transport, what are the expendititure incured by the company the total amout shoud be devided by the No. of products or commodity manifactured for ex: - the company manifacturing 100 products for the purpose company beare 1,00,000 =00 Expences when the price declared before the expences devided by No. of products 1,00,000=00/100 = one proudct ready for production the company bare for 1,000=00 Rs.+ % profit to interducing the market price 10 % profit 10% Cost of production is 1000+100 = 1,100=00 these the process Note: in expenditure before profit of tax of after profit of tax should be added. |
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bharat_prasad234
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cost of materials +costof production +labour cost+transportation+advertisement+profit |
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khadija k
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Companies decide their price on basis of their labour and production cost.After coming to the addition of this they add an appropriate profit to it and this is way how they come to a cost of a commodity. |
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pinky
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calculating all the expenses that the product cost. i.e., rawmaterial,labour,eb,time,tax,rent transport charges,profit ,.,.,like that |
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kavita t
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a company decide the price of a commodity as per the cost of commodity & market demand. |
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sandy
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a doubt frm me .if for example say the price of a product is 67 rupees. i will buy the product even if it is 68 then why they havnt fixed the price at 68? |
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