Reply to this post agree or disagree

Proof of Statement

To start with, the market is a very hard sector and if you do not move smartly, then you will not see any success for your company. Moving on, when looking at the statement and it says that if the demand curves are always downward-sloping and we have 4,000 units sold when we charged $20 for our product, then increasing our price to $25 will result in sales less than 4,000, it finds me agreed. I agree because if the market is down, then you cannot increase your sales by increasing the price of the product and this is simple math.

My opinion on this statement is that if the market is down then it will be for both you and your competitors too. The problem here is not that you are losing from the competition, but you are losing because of the market conditions. To fix this, it is not on our hands every time and of course, if you increase the price for a product you will see a huge decrease in your sales. Furthermore, you cannot increase sales without making innovations if you want to increase the price. For example, you cannot sell a car at the same rate as before with the price of $20,000 and after some period increase the price of the same car up to $22,000. It depends on the product and the name of the industry. From my little experience, when my dad bought a Volkswagen car with the price of $30,000. He was looking for a powerful and strong car and he wanted to buy the Mercedes Benz. But the industry of the Mercedes made a big fault. They increased the price by making something new in the car, something innovative. And this is how they lost one sale from my father. On the other hand, Volkswagen made something new in their new car, something more innovative and this made my father choose that car instead of the Mercedes Benz.

How you will increase your sales without convincing the marketplace to buy your product at an increased price? A short question with a short answer I think. The market needs are many and the people are always looking for something new, something different and innovative too. You must now wait for success if you just increase your prices. You must work hard and justify the price increase, so the people will buy it.

To end this, this theme is very related to our daily experience. Every day we can look same examples as this assignment. The market is something very lovely to me, but you need to be smart, strategic, and not risky at a high level. If you want to increase your sales, then work hard to make something new in the current of your products, to be more innovative and then you will increase the price of the product and the sales too.

REFERENCES:

1. https://fs.blog/2012/02/how-raising-prices-can-increase-sales/