What is flexible prices?
Price strategies are procedures that companies are involved in the sales of the most products at the most prisoners. Flexible prices generally indicate that the company is open to a certain negotiation of the price for goods or services. Buyers and sellers use this practice to get the best price to buy more items or save money. In economics, flexible prices can be in a way that the open market regulates the price of goods or services to compensate for a short or long -term shortage or excessive excess. The study of this price method is able to explain the supply and demand for certain events in the economy.
Some companies sell goods with the idea of flexible prices from the very beginning of business. For example, sellers of main equipment or car dealers usually have a flex at their prices. Negotiations with the buyers to obtain as much sales as possible are common in these companies. The main purpose of such pricing strategies is to sell most goods in a high rankRencnítrh. For example, the price of a product price by a certain amount can cause sales more than another company.
In economics, flexible prices can throw away the basic curve of offer and request. This curve records the balance of the selling price for which the company can sell the maximum amount of goods at the most important market price. When the company is involved in a flexible price, it changes the equilibrium point for the supply and demand curve. The result is higher demand for goods when the price drops. Insufficient offer in the long run may result in lack of goods unless the company attempts to sold out a certain product.
Price negotiation is a common practice for a certain industry. Here is not a chart of supply and demand always able to detect the equilibrium point. For example, a construction company often provides customers to customers for Variase projects. Although the company is trying to make a competitive offer, they have no idea, what are other offers from competitors. Therefore, the construction service can offer negotiations of its offer to obtain business and still earn a certain profit from the lower price.
Companies that are constantly involved in flexible prices may be difficult to stop this practice. Consumers will come to expect flexibility of pricing and often negotiate goods and services regardless of item. When the company changes its price strategy, consumers may be the result to change their shopping habits with the company.