Will raising higher prices improve business?

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This topic contains 2 replies, has 3 voices, and was last updated by Avatar of theaprum theaprum 4 years, 7 months ago.

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  • #136058
    Avatar of newsaviy
    newsaviy
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    I think only stupid people will buy anything is so high prices. Even me sometimes stupid to buy something that’s not worth the price. It just stupid. So its up to you. I was just saying, keep the money in your pocket, don’t let them fool you to loose your money. If its a good deal, then yes, go ahead and buy it. Lesson for you and me. I’m no better, I make mistakes every day.

    #136078
    Avatar of vision
    vision
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    I need 1 kilo for my watch band

    [i]Originally posted by Sonya[/i]
    Gold price is rising.

    #136090
    Avatar of theaprum
    theaprum
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    Raising prices in a depressed markets such as today is sure recipe for bankruptcy. The market simply won’t bear a price increase. In a strong economy environment, then a price increase has a good chance of improving a business’s profits. A useful metric that economists use to gaugage consumer’s sensitivity to price increase is called price elasticity. It measures the percentage decrease in demand for every percentage increase in price.

    Higher quality product and services that is perceived as premium which has less substitute has lower price elasticity which means businesses can increase prices without much reduction in demand by consumer. Higher education and medical services are such an example and that’s why their prices keep on going up and up and up.

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