Really broad question, and probably really simple, but when a product (of any kind) finally hits the shelves, what makes it the price that it is? How is it determined?
In: Economics
It depends on exactly what type of product but you start by figuring out how much of a product you can make and what components it takes to make them. When you figure out what it costs to build (include the price of labor, parts, packaging) you have sort of a “base” price. Then you add the cost of logistics, and if you’re going to sell it in stores a retail cost (meaning mark the price up to pay the store for selling your product essentially), and even the individual store can mark it up. But also you have to take into account the quality of your product vs your competition if there’s a similar product out there, and make sure it’s in an acceptable range that a consumer would pay for it.
Mass production can make overhead much cheaper, as well as underpaying your labor force.
Then of course you have products like medication that can be wildly jacked up because they know people will pay whatever the asking price is because they just want to live…
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