How come the same products are priced differently in different countries? Like if a Snickers bar costs 2$ in the US it’ll cost 30 cents in Ukraine. Do companies loose money this way?

Question

How come the same products are priced differently in different countries? Like if a Snickers bar costs 2$ in the US it’ll cost 30 cents in Ukraine. Do companies loose money this way?

In: Economics

Answer 1

Prices are based on profit. That’s like 99.9% of what drives price. If you see an item in a store operated by people who know business (i.e. anything but the most poorly run), its price is based on how much profit they will make at that price, including how many they will sell, how much space the product takes up, etc.

All of that is different in different countries.