Traders have different ways of determining the price to sell their products to customers in different places. They major on various factors which may result in offering the best sales to clients without exploitation. This helps to maintain a good relationship between buyers and sellers and thereby enhancing a good economic environment for a country. Through this, the country collects taxes from the sellers of the products and also charges rates for the users of certain products. This revenue is used to maintain and developed social infrastructure such as roads and supply of water. It is, therefore, the responsibility of every person to ensure that they engage in income-generating activities to maintain the growth of their country’s economy.
A good agreement between buyers and sellers will result in fair prices of goods in the market. To decide on the prices of goods and services, traders consider factors like the demand for goods and the amount that is supplied to serve customers. This helped them to come up with the best prices that will not scare away customers. In addition, it shows them the required amount to be supplied to the market for sale. Through this, they escape the losses that arise when there is excess supply of goods.
If they supplied excess goods, buyers may not be in a position to consume all the products but they will just take the amount that satisfies them. this might bring losses to the traders which even makes some of them quit trading activities. When they do so, they are most likely to remain unemployed especially when they have no other income-generating activity. This reduces the amount of revenue that the government collects from the traders. In such a condition, there will be less development since the government will not have enough funds to cater for development projects like road construction.
There are three major dealers that enhance the availability of business activities in a certain country. These are the manufacturers, the wholesalers, and the retail traders, who sell products to the final consumer. All of them have a major role to play in the supply chain but they are required to base on certain conditions. For instance, wholesalers like shopping malls need to offer better prices for retailers. This is because the retailers also depend on the extra profits that they will get when they buy and sell commodities. Shopping malls, therefore, sell their commodities to the retailers at a lower price to help them make a profit when they sell these to the final consumers.