Pricing of gloves should differently would depend upon the
following factors :
1.No. Of units demanded by customer :
Assuming the customer has demanded a considerable amount of product
which would not have been ordered in case dying option was not
available , in such a scenario not increasing the price can be
considered considering additional revenue which would not have been
earned in case of white gloves.
2.Demand for white Gloves in the Market :
In case there is surplus demand for white gloves in the market and
even if dying request for the customer is rejected and the order is
cancelled manufacturer can earn through supplying whites gloves to
other customers in such a scenario manufacturer is in a bargaining
position and should charge extra .
3.Pricing Strategy of Competitors : Price charged by competitors
should also be considered . Even in case the cost of dying is
negligible if competitors are charging extra for coloured gloves
and manufacturer gives it a same price then there is a opportunity
loss for the manufacturer .
4.Market Position : It is very important to understand the current
status of manufacture in the market in case the manufacture does
not have enough sales he can give coloured gloves for same prices
in order to gain entry in a particular market . But if manufacture
is in a comfortable market position and has enough sales there
might not be a need to bear extra cost for dyes.
5.Price Trend for Dyes :Once the manufacturer does not charge for
the dyes it might be difficult to charge in future . In a scenario
where future price of yes increases significantly and forms a
significant part of cost manufacture might incur huge loss .Hence
it is very important to gain knowledge of price trend .
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