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    #1

    price cycle

    I don't understand what "price cycle" means in the following.

    You could keep your prices fixed in January and promote this fact ..... The problem is that when you get round to increasing them in June, you might be the only company doing so --- and some customers may switch to your competitors. If your whole industry has adopted an annual price cycle outside January, it is probably best to align with that.

    Thank you.

  1. MikeNewYork's Avatar
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    #2

    Re: price cycle

    Quote Originally Posted by unpakwon View Post
    I don't understand what "price cycle" means in the following.

    You could keep your prices fixed in January and promote this fact ..... The problem is that when you get round to increasing them in June, you might be the only company doing so --- and some customers may switch to your competitors. If your whole industry has adopted an annual price cycle outside January, it is probably best to align with that.

    Thank you.
    The average price of many products varies throughout year. The price is affected by product availability (short supply drives up prices), consumer demand (low demand drives down prices), and competitor's prices. One main factor that cycles throughout a year is weather.

    For example, air conditioners are sold throughout a year. The demand for air conditioners is low in January and high in June. You will usually find that the price of these units will be lower in January than in June. If a particular seller decides not to lower the price in January, many customers will buy from a competitor who does lower the price.

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    #3

    Re: price cycle

    I think it is saying to change your prices at the same time as all the competitors do. To follow their cycle.

    If everyone raises their prices in September every year, don't be the one that raises them in June.

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