If the products and services sold include aspects that are highly valued by customers and our prices have evolved below market rates, it means that it is feasible to raise marketing prices.
Ariel Banos, founder of Fijaciondeprecios.com, describes the signs that should be analyzed by businessmen at the moment of applying an increase in the prices of the products and services marketed.
In Costa Rica, since July 2020 the producer price index for the manufacturing sector started to report increases, a situation that could lead to a rise in sales prices and simultaneously to a fall in the quantity of products traded.
Between December 2019 and June 2020, the producer price index for the manufacturing sector (IPP-MAN) reported negative year-on-year variations.
In September, price increases were more pronounced for vegetable oils and cereals, and for dairy products prices remained stable, while sugar and meat prices fell from their August levels.
The United Nations Food and Agriculture Organization (FAO) reported that in September 2020 the food price index averaged 97.9 points, i.e., 2% more than in August and already 4.6% above its value a year ago.
In Costa Rica, the price indexes of buildings and social housing registered in the seventh month of the year, year-on-year variations of -1.07% and -0.81%, respectively.
From the report of the National Institute of Statistics and Census:
The construction price indexes based on February 2012 are a set of twenty statistical indicators, which measure the variation in the prices of materials used in the construction of different types of works.
In Guatemala since April 12, interactions in the digital environment associated with the purchase of vehicles has rebounded; however, in April and May, prices of cars and pickups grew more slowly compared to the number reportes on the first quarter of the year.
Through a system that monitors in real time changes in price levels, interests and consumer preferences in Central American countries, developed by CentralAmericaData, it is possible to project short and long term demand trends for the different products, sectors and markets operating in the region.
In Guatemala, between January and February of this year, the price of 22-gauge steel sheet fell 2%, and the price of rustic pine formwork wood increased 2%.
The Price Index of Construction Materials -IPMC-, prepared by the National Institute of Statistics (INE), measures the price variations of the eighty-nine (89) materials and services that make up the representative basket of inputs used in the construction activity, using December 2018=100 as the base month.
During the second month of the year in the country, the price of the sand yard grew 4% compared to the same month in 2018, and the No. 4 stroller foot fell by 12%.
From the General Comptroller of the Republic's report:
The accumulated average behavior of January - February 2020, regarding the same period in 2019, showed increases in the Price Indexes (PI) of the Sand Yard and the Stone Yard No.
During February in the country the CPI reported -0.3% year-on-year variation, which is partly explained by the behavior of the prices of the transport category.
The groups that showed decreases in the National Urban CPI for February compared to January 2020 were: Transportation with 1.3%, Food and non-alcoholic beverages with 0.8%, Recreation and culture with 0.4%, Communications with 0.3%, Alcoholic beverages and tobacco, clothing and footwear, and Health all with 0.1%, reported the General Comptroller of the Republic.
In Costa Rica, the price indexes of buildings and social housing registered in the second month of the year, year-on-year variations of -0.90% and -0.89%, respectively.
From the report of the National Institute of Statistics and Census:
The construction price indexes based on February 2012 are a set of twenty statistical indicators, which measure the variation in the prices of materials used in the construction of different types of works.
During the second month of the year, the CPI registered a 3.7% year-on-year variation, which is less than the 4.1% reported in January 2020.
The variation in the Consumer Price Index was -0.13% in February compared to January 2020, placing accumulated inflation in the January-February period at 0.20%. With this result, year-on-year inflation measured from February 2019 to February 2020, reached 3.66%, below the center of the target range of 4%±1% established in the Monetary Program.
Price per gallon of regular gasoline: Costa Rica $3.82, Nicaragua $3.61, Honduras $3.39, Guatemala $2.99, El Salvador $2.98 and Panama $2.81.
From the Ministry of Economy of El Salvador report:
The current reference prices for gasoline and diesel maintain a mixed trend (ups and downs), these variations are because of the continuous fall in the reserves of these products.
In the second month of this year, the FAO food price index rose by 8 percent compared to the same month in 2019, explained by rising prices of meat, dairy products, vegetable oils and sugar.
From FAO's monthly report:
-The FAO Food Price Index* (FFPI) averaged 180.5 points in February 2020, down 1.9 points (1.0 percent) from January but still 13.5 points (8.1 percent) higher than in February 2019.
Price per gallon of regular gasoline: Costa Rica $4.10, Nicaragua $3.51, Honduras $3.39, El Salvador $2.95, Guatemala $2.92 and Panama $2.81.
From the report of the Ministry of Economy of El Salvador:
The current reference prices for gasoline and diesel show a mixed trend (ups and downs), these variations are due to the continuous fall in the reserves of these products, according to reports provided by the IEA in February 2020.
During January, domestic sand prices rose 3% compared to the same month in 2018, and the 94-pound sack of gray cement fell 2%.
In January 2020 compared to the same period in 2019, the IPs showing increases were: Sand Yard by 2.6%, Stone Yard No. 4 by 2.5%, Polarized Box Outlet Unit by 2.4% and Clay Block % by 1.2%. In contrast, the IP of the foot of Carriola No.
In Costa Rica, the building and social housing price indexes recorded year-on-year changes of -0.87% and -0.48%, respectively, in January of this year.
From the report of the National Institute of Statistics and Census:
The construction price indexes based on February 2012 are a set of twenty statistical indicators, which measure the variation in the prices of materials used in the construction of different types of works.