Pricing too High is as Dangerous as Pricing too low.

This entry was posted on Saturday, May 14th, 2011 and is filed under Cashew.
Pricing too high is just as bad as pricing too low. The first one is harmful to the consumer and the other one is harmful to the processor. If the processor, who has incurred heavy losses in the past 3-4 months, now reasonably increases the prices for June-end or July contracts, there is nothing wrong in it. But if he pushes the market beyond all ceilings, the budget-conscious consumer will shift to Almonds or other dry fruits. The danger in pricing too high is that the resulting sales volume will be too low and the greatest risk in pricing too low is the possibility of huge losses to the industry. Retail prices should be increased according to demand and supply but should not be over exaggerated on rumors.

Filed Under: Cashew