If in a market segment the offer of several manufacturers exceeds the demand, Preisdruck develops, i.e. the price of the commodity becomes the purchase-crucial factor (contrary to markets, in which the goods offered are too scarce: There the availability of the commodity becomes the main criterion).

Accordingly all competitors are forced to minimize the price of their commodity whereby first profit margins and profits sink, on a long-term basis it in addition, to a market shakeout come: Those offerers, who can manufacture the commodity at the less favourable price, are displaced by the market.

Articles in category "Preisdruck"

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