BPI
Balancing Price Impact
There are two main reasons for product price increases: Demand Pull and Cost Push. Both are responsible for general prices rising in a market economy. But they work differently.
Demand-pull, conditions occur when demand from consumers pulls prices up.
Cost-push, occurs when supply-cost force prices higher.
We all believe that balancing this price impact there is hard to control this price impact balancing when market demand & supply are inconsistent.
But it is also known that the business cycle has a certain influence if we can handle this efficiently. Let’s see how it works?
What Is Business Cycle?
Alternate name: Economic cycle or Trade cycle.
The business cycle can be defined the downward & upward fluctuations of gross domestic product (GDP) along it’s natural growth rate over a period of time.
How Does the Business Cycle Work?
The duration of a business cycle is the period of time containing a single boom and contraction in sequence. The time it takes to complete this sequence is referred to as the length of the business cycle.
Each business cycle has four phases: expansion, peak, contraction, and trough. They don’t occur at regular intervals, but they do have recognizable indicators.
Production, supply and feed to the market is in equal ratio
Unstable market wave
Some things that can affect market price are controllable, while others are out of your hands. Factors that impact market price include:
Natural disasters.
World events.
Workers wage fluctuation.
Employment Impact.
Pricing of luxury items versus necessities.
Unless other wise, a strong integrity and business unification can abrupt immediate hick up a certain load of price impact until the stock consumption occupied. So we are confident to ensure the price consistency of every products for our valued customers based on our analytical & methodical invent.