The price comparison market is an ever-changing market which gives us the information we require in order to make our decisions on the best products or services at the best prices. We as consumers are always on the look at for the cheapest prices and the best value. We live in a world where we see a change in price on a daily basis, for example, this could include the increasing price of products and services depending upon the geographical area, demographics.
The market will be influenced by the buying habits of its consumers depending upon their needs and wants. Overall it is always the best practice to make sure that you get the best deals at the best prices to make you save and be mindful of the influences of the competition in the marketplace.
Many online sites now make this decision for you in terms of showing what the best price on the market is and who are the suppliers who are offering the best prices, this will always give us a guide to who is charging the most money and who is charging the least for the same for similar products or services.
The fierce competition in the marketplace will create competition amongst businesses trading with the same sector, for example, fast food takeaways, supermarkets, betting shops, newsagents, internet café, mobile phone stores. The key to succeeding the competition is to have knowledge of what your competitor are doing that will affect your business, for example, are your competitors selling products at a cheaper price than you.
What are they offering the customer that is different to you, once you identify what you competitors are doing you can then act accordingly with your business making sure that you either match or improve against what your competitors are doing. It is also important to have a strategy in place if something was to go in the wrong direction in your business, for example, you are not reaching the sales target, not having enough customers, business is going bust all these factors can affect your business.
We can look at some of the economic forces that may affect a business and its ability to continue to trade in the market. We will also look at what the economic factors are that may have an impact on the business and what the importance of economic are in business.
Economics plays a huge role in any business, for example, the supply and demand of products and services play key importance, the market equilibrium where supply meets demand and economies of scale, producing at a lower price due to high quantities being manufactured.
It is important to look at the economic factors that affect a business such as interest rates, we live in a world where bank interest rates are rising and inflation is on the rise. Bank borrowings are having a dramatic impact on businesses where loans taken for starting up a business are not being paid on time, business owners are running out of cash due to fewer sales and loss in business revenue.
Employment is another factor, having the right number of staff is vital to any business in terms of managing the workload and making sure that the resources are available for the work to be done. This will have an impact on cost, for example, the more employee you have the more money you will be paying out to your employee, therefore, it is important to manage that aspect of it. Having a budget in place will be the key to identifying how many staff you can afford to hire.
Demographics, starting your business in a busy location will provide more chances of success, this involves looking at the number of people who will be your target market and will be a potential customer. This can have a positive impact on your business in terms of increasing awareness and having a large customer base.