Price increases, which started in commodities last year, are now presenting themselves at the nation's retailers. Responding to higher costs with rising prices may mean a consumer backlash when most Americans are concerned about their economic prospects. Savvy?
Retailers Try Velvet Glove in Raising Prices - NYTimes.com
Saturday, April 23, 2011
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3 comments:
I think that if the government would work out some kind of deal with the businesses looking to go overseas then the United states would have more employment possibilities which would provide people with the money to be able to purchase items at the higher value of prices.
I believe that right now customers are not noticing so much the increase in prices because the economy is starting to look etter, however, with everything that is going on with the cotton, and oil prices I am afraid there will be anotehr mark-down and if the prices continue to rise people will react to them.
However, for some retailers could not be that bad, a rise in prices could mean that the brand is creating a more meaningful added value, but if it is not supported by a good quality then the people will notice.
I think that the rise of prices has to be justified, provide reasons so the customers will understand and remain loyal to the company.
This article displays how globalization is making business functions become internationally integrated. For example the price of clothing is dependent on the demand China is imposing with wages cost. Retailers are automatically forces to use various tactics to lower expense therefore making business transactions that much more difficult. The different variables running a business domestically isn’t as hard as running a global business with a wide range of obstacles.
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