How can price escalation be counteracted

Products obtained closer to home are insulated from many price escalation factors because it costs less to ship them to your manufacturing and distribution centers. Further, goods sold domestically will not be subjects to tariffs, duties and other importation costs, nor the transportation and warehousing costs associated with selling goods abroad. Selling your products locally helps to overcome price escalation for the same reasons that shopping locally does.

When selling or producing internationally, try and do so in a free trade zone. This will help you avoid many of the costs associated with manufacturing or selling your goods internationally. Further, selling domestically saves you the cost of hiring lawyers to deal with the complexities of international trade. Reclassifying your product on the international market can save money as well.

You might be able to avoid tariffs by getting your product classified officially as something with a lower duty. This can also lower your administration costs if you no longer have to deal with certain trade bureaucracies.

These areas remove the additional costs that come with manufacturing or selling your products abroad. If you do sell to international markets, consider the local rate of inflation.

One market might have issues with escalated prices whereas in another market, there could be a lower overall inflation rate. Finally, another tactic you can use is to find cheaper ways to source your products on a manufacturing level. This could be more expensive initially as you might have to purchase goods in bulk.

But in the long-term, you might find that you save money. Running an ever-expanding e-commerce business presents itself with a range of issues and problems you need to think about. Failing to do this will not only hinder your growth but could cost you more money further down the line. Getting ahead of yourself and factoring in price escalation will ensure your business grows and your customers stay happy. Save my name, email, and website in this browser for the next time I comment.

Manual competitor tracking is a daunting task if you want to move in a negative direction. We encourage you to stop with 5 reasons. Shopify price experimentations are a great way to test product pricing and see if you can find a better revenue generator. Tell us more. Was the final answer of the question wrong? Were the solution steps not detailed enough?

Was the language and grammar an issue? Didn't find yours? Ask a new question Get plagiarism-free solution within 48 hours. Review Please. Next Previous. Related Questions. Instructions For this task, imagine that you have been asked to prepare a report for your marketing director that responds to the following: Explain the concept of price escalation and why it can mislead a global marketer. Determine the causes of Discuss five ways in which the effects of the problem of price escalation could be reduced by an international marketer.

How would you distinguish between services and products?