Pricing decisions are affected by many steps or thought such as determinig demand, estimating cost, analysing competitor cost, price and offers, selecting a price method and selecting a final price.
The company has detected that the demand of soaps in the communities are high as explain earlier, so there is the need for its production because most of house cleaning are done by it. The price and cost of the products can be determined or estimated when the sources of chemicals or raw materials used in the production are determined, but as for the Appiah Menkah company most of their raw materials are found in the country with the exeeption of a few materials that are imported to raise the standard or quality of the product.The materials obtain in the country are comparatively cheap to imported ones of virtually the same value, this accounts for the reduced price of their finished products compared to other companies who imports them. The company is also specialised in making good use of the local materials as they have used those products for a much longer time, of course other companies also resort to the use of the local raw materials but their blend is exceptional.
Thursday, December 13, 2007
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