With the fluctuating product’s cost in the present market, you might be wondering why some product costs so much. However, it’s vital to understand that both internal and external forces contribute most of these factors affecting products prices. In simple terms, when we talk of internal forces, it means the internal factors which are determined by the company selling the product and the external factors contributed by government policies.
If you wish to purchase an automatic recirculation valve, the varying price you see on the online stores is determined by the internal and external factors. Here are factors affecting the automatic recirculation valve price.
Internal Factors
- Product Cost
How much did it cost to manufacture the product? The automatic recirculation valve specification has to be in the target range. Whatever the company’s goal was concerning the specification of the valve, they all need to be fulfilled? To fulfill these specifications, it means they will have to invest differently for every machine.
Thus, the amount of money used to cater to the manufacturing cost, that is labor, raw materials, and fine-tuning all will affect the final price tag.
- Objectives Of Manufacturing The Product
First thing first, is the automatic recirculation valve manufacturers in question after making extra profit, increasing their market shares, or they are in business to solve some problems ethically? If the company is manufacturing the valve for market share, the valve will sell at a lower price as compared to a valve selling to make a return on investment from happy customers.
- Advertisement
Advertising a product is costly, but you have to do it to popularize your product in the market. Besides, how will potential customers know you’re selling that very product? With that, the advertisement method you are to use will determine the overall cost of your product.
In short, the price you incur while advertising should be included when labeling the final price.
- The Life Cycle Of The Product
The life cycle is based on demand and supply factors. So, in the beginning, some products will cost cheaper, but after some time, probably because the will have increased, you will find some companies increasing the prices.
External Factors
- Competition
The automatic recirculation valve price of your company might be higher as compared to those of your competitors. It is needless to say; you won’t sell much if the competitor is selling the same quality of a product as you but at a lower price. So, you have to decide along with your board members, whether to maintain the price or lower the price. In some cases, you might still sell, but if you are not making profits, consider changing your marketing strategies or the lower the price.
- Government Policies
If it were not for government policies, some of the automatic recirculation products would cost cheaper. But, the government influences product pricing through taxes, work permits, and other necessary licensing. Thus, when importing these machines, be clear to check on government policies. Your government might have different trading tariffs depending on the country you’re importing from.
Take Away Automatic recirculation valve price is affected by the above factors and other minor factors not mentioned above. So, if you plan on buying a pump recirculation control valve, remember the prices are determined by all the factors above or some of the factors.
