Question:

Can we reduce market price by reducing purchase. If i purchase 2 eggs daily for 12 days rather than 24 in go

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It is said that if e price of commodity is getting higher, simply start buying that commodity on daily basis if being purchased on weekly basis, and this must be done by all consumer of that commodity at once. Is this true? for example if 10 people are buying 20 units each at 2 dollar per unit (40 dollars purchase) in a day from a store for next 5 days then on a price hike by the store.... simply ask all 10 people to purchase 4 units every day (8 dollars purchase), this will decrease the daily sales of store...Please answer Thanks

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3 ANSWERS


  1. Daily amounts would actually increase.  Plus, you factor in that more people would be driving to the store more often increasing demands for energy.  Demands for energy increase fuel prices which in turn drive up the cost of delivering goods.  

    Instead, people need to purchase only what they need.  I have a bad habit of buying a dozen eggs but only using 6 or 7 before they expire.  Instead, I should only buy 6 and return to the store if I run out of eggs.  

    Finally, very few business units measure sales on a daily basis to the point they would lower prices.  However, your scenario would actually increase daily sales and give the short-term impression that demand has increased.  Again, very low chance unless the business unit is using a just-in-time inventory system.


  2. This makes no sense.  If all people bought like that, then the store could have reduced costs, since they could better plan their purchases, not needing to carry large inventories.

    However, in an mass market purchase (your example of eggs works in this sense), there are so many purchasers that the overall purchases are spread out anyway.  1 person buying 24 eggs each day is not different (from the store's perspective) than 24 people each buying 1 egg.


  3. what you should do is called dollar cost averaging. not purchase the same number of eggs daily, but purchase the same dollar amount of eggs daily.

    that way, when the price fluctuates, you buy fewer eggs at high prices and more eggs at low prices. it is har to buy half an egg, though.

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