What is a Commodity-Product Spread?

Commodity spread refers to the new price ring formed by the same commodity during the circulation process due to different aspects of the purchase and sale link, the purchase and sale area, the purchase and sale season, and the quality of the product. The essence of the difference is the monetary performance of part of the value of the commodity realized in the process of circulation. The basic elements that make up the commodity spread are the circulation costs, commercial profits, and the specific form of the national tax commodity spread. The general forms generally include: purchase and sales spreads, wholesale and retail spreads, and regional gold. [1]

Commodity spread

Commodity spread refers to the new price ring formed by the same commodity during the circulation process due to different aspects of the purchase and sale link, the purchase and sale area, the purchase and sale season, and the quality of the product. The essence of the difference is the monetary performance of part of the value of the commodity realized in the process of circulation. The basic elements that make up the commodity spread are the circulation costs, commercial profits, and the specific form of the national tax commodity spread. The general forms generally include: purchase and sales spreads, wholesale and retail spreads, and regional gold. [1]
The price difference of the same product due to different regions at the same time.
The same product is different in the same market
Means that at the same time and in the same market, the retail price of goods is higher than
Also known as quality spread. The price difference between the same product due to different quality. The quality difference is the percentage of the standard price, which is called the quality difference rate. Commodity quality difference mainly includes: quality difference, variety difference, grade difference, color difference, style difference, specification difference, etc. It reflects the durability and applicability of the same kind of goods. The main factors for the quality difference of the same commodity are: workers' production technology, proficiency, cultivation or breeding methods, production equipment technology level, process level and raw materials, and mineral resources and natural conditions. Generally speaking, in the production process, different enterprises produce similar products, and the consumption of raw materials and labor is different. This consumption is directly proportional to the quality of the product. In the production process of a product, the amount of socially necessary labor is large, the value is large, and the quality of the product is good; on the contrary, the amount of labor is small, the value is small, and the quality of the product is poor. According to the requirements of the law of value, the price of goods with high value and good quality should be higher; the prices of goods with small value and poor quality should be lower. However, in many cases, the differences in the quality of some goods are not caused by the difference in the amount of socially required labor consumed, but are determined by the difference in the value of the goods used.
Valuation by quality is an important part of socialist price policy. Pricing the same kind of products according to their quality and different prices, and implementing high quality and good prices, low quality and low prices, can encourage enterprises to produce high-quality products and meet social needs; it is conducive to enterprises to actively adopt new technologies and processes to increase new products; Economic accounting to improve economic efficiency. If the quality is not high or the price is small, the enterprises that produce high-quality products will consume more materialized labor and live labor due to the improvement of product quality, and will not be compensated, which will affect the enthusiasm of enterprises to produce high-quality products. Similarly, if low-quality products are not implemented at low prices, they will protect backward prices from the price, make enterprises not concerned about improving management, and even promote crude production.
To specify a reasonable quality difference, the quality standards of the goods must be correctly formulated. The quality standards should be based on the standards officially promulgated by the state; for products that have not been formally promulgated by the state, the industrial and commercial enterprises shall jointly determine them.

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