Find the Lowest Price – Knowing the Merchant
Find Lowest Price - so you would like to find the lowest price. Here's some points to consider on how merchants do their pricing.:
The minimum price the merchant can go for is what becomes the lowest price. This is obviously dictated by the law of supply and demand. However a merchant can lower the price depending on what they want to accomplish (to dispose of stocks, gain market identity etc ...)
The market will settle on a certain amount (unless the merchant goes for a loss to dispose of his inventory). The sellers (the wholesaler and retailer) will start fixing their own prices based upon the forces of demand of the market and what their competition is doing.
So in a normal market condition, the way merchants do their pricing are:
- The merchant add a percentage of profit to the item (for example - the cost of the item plus 30% or the cost of the item plus $10.
- The merchant looks at competition and charges a similar price or uses the average price of the competition
- Minimal pricing - when targetting volume sales, merchants would focus on smaller margin but higher volume of sales
Keep in mind when looking for a bargain to look at the overall picture and not just the price. Look at the value the merchant provides and the reputation of the merchant. It may be the lowest price at face value but if the goods don't arrive on time or you have an unscrupulous merchant then it may not be worth the discount.If an item is priced too low and find out why as the merchant may be providing less value in the overall shopping process.
Ok, hope this helps in understanding how your merchant thinks when they sell their goods and when you try to find the lowest price.