Market demands and factors of supply and demand have got a real pressure on price.

However, there are brands, trade marks and product quality and integrity which has some connotation to social position, E.g. clothes worn by celebrity is well sort after at higher price.

As for a small business, it has to do with the bottom line - profit margin, competitions and market value of the product. The price structure has got very much to do with the stage of development of the business, but as businesses grow, like any other corporation, the cost increases along with the number of staffs, the salary increase, and increasing redundancy. That is the life-cycle of business, which has very much to do with the life-cycle of the product.

Dear Street Smart,


It is not that only small Businesses face a problem like this. Even if it is a large business house, lack of creativity, lack of value addition and continuous investment of some part of revenues in Brand Building, lack of Business Development Exercises, and reallocation of other efforts according to Market needs would kill a business be it small or big.


If you know how to command a market as a company-big or small you will always survive...But if you are governed yourself by the market forces , you will always perish to the cycles of all kinds.


Rgds,

 

Replying to [Street Smart]:EVEN IN LARGE BUSINESS HOUSES,LACK OFCONTINUITY IN INVESTMENT OF REVENUE IN BRAND BUILDING,CREATIVITY,VALUE AND BUSINESS DEVELOPMENT WILL COLAPSE A BUSINESS BE IT LARGE OR SMOLL.