Why does the price of caster wheel keep changing?

Why does the price of caster wheel keep changing?

The price elasticity of the caster wheel depends on the number of substitutes and caster wheel related substitutability, the importance of the buyer's budget and the use of the goods. The price elasticity of caster wheel is mainly based on changes in the economic situation.

The price elasticity of caster wheel refers to the ratio between the percentage change in product sales and the rate of price change, and is a sensitive indicator for measuring the quantity change caused by price changes. When the elasticity coefficient is 1, the increase in sales volume offsets the decrease in prices. When the elasticity between 0 and 1 means that the price will rise, the profit will also increase, and the decline in price will reduce the profit. We say that the demand for this kind of goods is relatively inelastic or price-insensitive. Most of the same caster wheel have low demand elasticity, and most high-quality caster wheel have relatively high demand elasticity.

With the continuous impact of the market, the price of casters is relatively low. Many caster manufacturers have low profits or even losses. The possibility of finished product inventory will increase, and enterprise inventory will continue to decline. Due to excessive price competition, there are now many caster manufacturers. Ningbo Central Metal Products Co., Ltd. caster wheel factory is one of the large-scale manufacturers. There is also vicious competition among manufacturers. The way to reduce customer prices is to disrupt the operation of the entire market.