Overview of prices

🍀❤️Everyone’s life is influenced by prices, whether we are talking about our personal, social or entrepreneurial life.🍀❤️

Why? In order to benefit from the most beautiful and diverse experiences in life on Earth, regardless of the area in which we speak, we need to pay a price.

What matters when prices are set? A small overview …

Starting from the buyer: the utility of the good to be purchased by the buyer; the buyer’s ability to pay; the cost of buying the other good / service from another place (from another market); the structure of the demand formed on the basis of some social behaviors, the perceived value.

Starting from the bidder: the cost of “production”; the prices of that good or service in other markets, the amount charged.

Starting from the state (see energy and gas prices this winter): indirect government intervention to stimulate or reduce supply and demand; government policies adopted to maintain economic balances (labor market, agricultural market, etc.), the behavior of large monopolistic organizations.

What types of prices in the broadest sense are practiced?

1. Free prices – are formed in conditions of open competition

2. Managed prices – are formed and modified under the influence of companies with a key position or the state.

3. Mixed prices – are formed based on all internal and external market factors.

The problem of the nature of the essence of the price is neither new nor unitary. It started with Aristotle, who found that price expresses a measure of what is sold in the process of exchange, but could not explain the equality of two heterogeneous goods.

The classical school of political economy found the answer to Aristotle’s perplexity. Namely, that the objective basis of the price is the value, the price being the monetary expression of the value, and the goods that change between them, although different in terms of quality, have as a common and homogeneous element the value created by human labor. Adam Smith in his work “Wealth of Nations” in which he emphasizes that labor is the real measure of the exchange value of goods and services.

Instead, contemporary marginal theory completely denies the existence of value, no matter what its support. Value is considered a fiction created by the imagination of classical economists, and price is not about value.

In worthless price theory, price is considered to be the only real category recognized on the market; it is determined exclusively by the dynamics of supply and demand.

Contemporary price theory is not limited to the two opposite major directions, as I originally wrote. In conclusion, we take into account labor, demand, supply, the usefulness and scarcity of goods and services, competition, the domestic and international economic environment, including the intervention of the state administration in the real mechanism of price formation.

And, at the same time, it matters your internal energy as a person and business owner or seller, your inner vibration when you set prices and when you engage in the sales process, your ETHICS and AUTHENTICITY and what you offer.

How do you communicate the price to the person in front of you? From what energy? How do you consider the price of your product and service, big or small? Does the person knows you in advance? Are you connected already?

I assure you that as you see and believe, the one in front of you will believe, and I assure you that if you are COLD also the person in front of you will be COLD, even if he / she may need your product or service.

People buy people. Connect from heart to heart and then you can truly communicate anything, not just the price, with the person in front of you 🍀❤️

From my heart to yours and your business ❤️

Nicoleta Mădălina Gherghe Mihăilă

Managing Partner - Powerfull Deeds For 10 years doing Powerfull Deeds, serving individuals and companies in their own journey of growth with my knowledge, experience, tools and shortcuts, enjoying each step. I would love to contribute in yours too. How can I serve you? Send me an email and tell me how can I add value to you? [contact-form-7 id="497" title="Contact form 1"]

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