There Are Four Major Factors Affecting

There are four major factors affecting prices, which include store/company policy, customer acceptance, competition and price potential. The one I paid attention is Customer acceptance. Price planning involves what the costumer acceptance. When new products release in market, customers get attention on it and start to buy it because it is new. And if the business limits a supply on the market, the consumer would think that it is worth more to buy the items. Such as limited edition products, since the supply is limited, the demand will increase, thus the retail prices on the item will increase as well. When the time goes by, customer will transit their attention on next new products.

For example, Zara is a very good example for customer acceptance. I believe Zara is the fast fashion icon. It has very great supply chain, which allow it to turn over new styles in a fraction of the time. Zara’s designers can quickly churn out designs inspired by the latest runway trends. Their supply is very limit, the retail store change merchandise every week. Zara’s price is lower than most high street brand, higher than HM, GAP or Forver 21. Customers would love to buy it because they can get similar inspired items from the latest trend in a much cheaper price, and sometimes you wont even know it is from Zara because they are limited.