How To Justify Price Increases

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How To Justify Price Increases
How To Justify Price Increases

Video: How To Justify Price Increases

Video: How To Justify Price Increases
Video: How Do I Raise Prices Without Losing Clients? 2024, March
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Higher prices, especially for food, medicine and housing costs, hit the pocket of Russian citizens. It is quite easy to justify price increases in the era of global financial crises and major changes in the economies of many countries.

How to justify price increases
How to justify price increases

Instructions

Step 1

Please note that any weak or developing economy is subject to both external and internal influences. Even without experiencing serious pressure from the global economic crises, it is not able to fully provide a decent life for its citizens. It is worth noting the excessive dependence of Russia's economic growth on the volume of exports of energy carriers and raw materials, which is a disadvantage of the Russian economy. But the country is not only the economy, but also politics, the real legislative base and the executive branch.

Step 2

Consider the fact that experts from the Institute of Economic Forecasting of the Russian Academy of Sciences (INP RAS) believed that world oil prices would rise in 2011, driving economic growth and reducing inflation. With the forecasted level of 7, 8%, in fact, it dropped to 6, 1%. In the context of the impending second wave of the global crisis, it is generally difficult to predict, although OPEC expects certain levels of prices for "black gold" until 2035. Despite all the criticism and information addressed to the country's leadership, one should trust and rely on the common sense, economic and legal experience of the leaders of the state.

Step 3

The rise in prices for products and services in the current environment is partly due to the monopolization of markets in certain industries and dependence on imports. Operating companies, guided only by their own profit, without a worthy competition, set speculative prices. Despite various measures taken by the Russian government to control them, and the loss of agricultural crops in a number of regions due to the abnormal drought in 2010, citizens felt the price increase.

Step 4

It is easy to explain the rise in prices by the activity of ordinary speculators. Having formed trading networks, they dictate prices and are not going to lower them, as required by normal economic laws. "Dirty on hand" businessmen expect further inflationary shocks and plan to inflate profits. An agricultural producer in such a situation is faced with a clear infringement of his interests on the part of trade. Unreasonable and unmotivated trade margins lead to an unfair distribution of profits between the producer, processor and seller. Thus, all the costs incurred are offset by an increase in product prices and are easily passed on to the consumer. First of all, this situation is around fuel, food and medicine.

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