Question

Q.1. 'The success of any product depends only on PRICE"-Do you agree with this statement? why or why not? 3

Q.2. Suppose, you have started a new business of selling Mangoes using the online platform in Sylhet. You brought mangoes from Rajshahi with the help of SA Paribahan (courier services). What factors should you consider in setting the price of your mangoes? 5

Answer 1

There are many factors that contribute to the success of the product. I could say No to this statement as Price is not only the factor for success. It depends on Production, Stock, Quality, Quantity After sales support, and other factors.

For Instance, if we consider Oreo as an example of this question, We know that 100gms of package costs around Rs30 which is quite more when compared to the different products available in the market. There are competitors which are providing the same kind of product which is costing less than Rs 20 for the said quantity. This is just to illustrate that even though the price is high it does not impact the sales of the product unless this is very demanding and has met all quality requirements. There are many cases where the price of the product is less and has got no customer base even though the quality is very good. For example, We have accessories that are manufactured by local units with international standards. These types of products will have fewer sales as they don't have brand name stamped in the market. There are many products which are available cheaper than the market rate with good quality but they still don't see a good number of sales numbers.

Hence we can surely say that there are also other factors that influence the sale or success of any products. It does not merely depend on the price.

Q2: In the given situation, Forst we have searched for the quality of the product and analyze the market demand for the given product. FOr example, We have this Mango demand in the market, There are many types of fruits and different varieties available in the market. We have to ensure that the type of mange we procure is available in the market with demand. Now we have to check for the cost of procurement and shipping charges that actually costs us to get the product to our selling place. Now we have to ship them to our customers. As we already have data of demand we can check for the shipping prices and then ship accordingly by taking the right price for them. There is also another option to get profit. We have to see if the courier is available to sip the fruits to the customers directly from the place of procurement. but this has limitations as we know there are many situations that we have to consider for shipping. Customers may be requested for a quantity that is abnormal or very less. We have to check carefully and push the order. In this case, we can fix the price as base price + Our margin on each kg and shipping charges.

Shipping charges are applicable based on the distance and the ways available to ship this product. We have to check and send them accordingly.