HOW TO FIX THE PRICE FOR YOUR PRODUCT OR SERVICE?

   

     

           Say, a lady by name Mary makes 'home made chocolates' in a hill station called Ooty.  She wanted to fix the price.  So she begun to experiment.  At the most, she can make 10 kg of chocolates per day.  First, she put the price at 1000 rupees per kg.  No takers.  It proved costly for both locals and tourist.  She changed the price to 750/ kg.  Some 3 or 4 kg sold daily.  Then she drastically reduced the price to 250/kg.  (even though she incurred loss). The chocolates sold like hot cakes.  There was a demand for more than 15 kg a day.  She was not able to cope up with the demand.  Next, she  priced the chocolates at 600 per kg.  That included some decent profit.  Now, around 10 kg  sold everyday.  She was happy 'for ever'!.
     "A thing is perfectly priced when supply equals demand".

  Supply-demand principle is one of the key stones of economics.
     In matrimonial market, in education,  in employment market, in share and Bullion market; everywhere supply-demand principle appears.

KEY POINTS:
     The law of demand says that at higher prices, buyer will demand less of an economic good.
     The law of supply says that at higher prices, sellers will supply more of an economic good.
     These  two laws interact to determine the actual market prices and volume of goods that are traded on a market.
    In a nutshell; supply and demand pull against each other until the market finds an equilibrium prices.  That is why, gold prices rises during wedding season and falls in the lean season.

Apple's black laptop:
     Apple usually makes white laptops.  At one time, it made black laptops (except colour nothing is special) and priced it at an extra 200 dollars.  It sold well, even though it was expensive.  There was "demand " for it.  Why?  Some wanted to distinguish themselves from their run-of-the -mill white laptop neighbors.
     Does human values, affection, honesty in short "supply"? Please "demand" them more.     
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