In order to ensure that a possible de-regulation would not generate an unjustified increase in the products considered to be of greater sensitivity, the government decided to extend the price control system of the basic basket for six more months.
At present, the list of products whose prices are controlled includes beef slices, ribbon steaks, ground beef, whole chicken, rice, onions, yams, national potatoes, perita tomatoes, cassava, powdered milk, sliced bread, processed American yellow cheese and sausages.
Segmenting customers by prices they are willing to pay, showing the value of the product or service to charge higher prices and being careful when applying discounts are some of the recommendations from experts to avoid losing money.
Ariel Banos, founder of Fijaciondeprecios.com explains some of the myths that exist among business leaders when building a pricing strategy, and what could be the alternatives to not lose money.
In order to reach customers who, have great uncertainty at the time of purchase and to improve the unit margin of the products sold, flexibility must be offered in the cancellation conditions to increase the probability of successful sales, even at higher prices.
In difficult times, such as the current scenario generated by covid-19, the companies that win will be those that provide greater peace of mind to their customers, even if they sell their products at higher prices.
A presidential decree gives the National Energy Secretariat the power to regulate maximum retail prices for 91 and 95 octane gasoline and low-sulfur diesel.
The regulation of maximum prices will be in effect for a six-month period, which may be extended, according to Executive Decree No. 474 of June 10, 2020 published in the Official Journal.
Discounts and offers, increase in the price level generally and the rise in operating costs due to new health and safety protocols are the main threats to the profitability of companies in this new commercial reality.
Given this context of economic and health crisis, which derives from the outbreak of covid-19 at the global level, Ariel Baños, a specialist in price management and founder of Fijaciondeprecios.com, explains what are the main threats that could affect the profitability levels of companies, and details some strategies that could be applied to mitigate the adverse effects.
In Panama, the government established the maximum gross profit margin in the entire commercialization chain, for different personal hygiene, cleaning and consumption items, which are of primary need.
According to Decree 152 dated May 13, the measure decreed is with the aim of mitigating the outbreak of covid-19 and to give the general population access to most products.
In the current complicated context, companies must reconsider their strategies so as not to fall into the error of making aggressive discounts, since they could affect the positioning of their products in the medium and long term.
Ariel Baños, a specialist in pricemanagement and founder of Fijaciondeprecios.com, explains some of the important conditions that must be considered when deciding to make discounts in an environment of high uncertainty such as that which has generated the current crisis of covid-19.
Authorities in El Salvador agreed that the prices of the masks should range from $0.73 to $2.67, while for alcohol gel it will be from $1.14 to $24.25, depending on the brands and presentations.
The Ministry of Economy will be in charge of setting the average price list of the products of the basic basket that will be in force in the country.
Article 3 of the decree approved by the Congress of the Republic explains that "... the Ministry of the Economy will set the average price list as of March 15, 2020, for each of the 34 products that make up the Basic Food Basket in its different forms of presentation, unit, pound, quintal, etc."
In the context of the covid-19 crisis, the Salvadoran authorities decided to establish a maximum price for all products in the basic basket.
The Consumer Defense Office has selected beans, corn, rice, milk and eggs as essential products, which must be kept at accessible prices in the local market.
Demonstrating solidarity with customers through reasonable prices and preventing monopolization to ensure greater market coverage are some of the strategies that experts recommend to companies in contexts such as the current one.
Ariel Banos, specialist in price management and founder of Fijaciondeprecios.com, explains three strategies generating responsible behavior in an environment of high uncertainty as the current crisis of the coronavirus.
In response to the covid-19 pandemic, the country's authorities set the price of masks at between $0.20 and $2.60, while for alcohol gel it will be $0.95 to $3.94.
The Consumer Defense Office ordered the maximum sales prices of the masks and alcohol gel, in order to contain speculation about the global coronavirus pandemic.
The authorities plan to regulate the prices of disinfectant soaps in tablet or liquid form, disinfectant sprays, liquid alcohol, alcohol gels and disinfectant towels.
According to official statistics, up to March 16, 41 cases of people infected with the coronavirus had been reported, and another 615 patients who were examined were found to be negative.
Although at the beginning of the Cortizo administration it was announced that the price control system for the basic basket would be gradually removed, now the Panamanian president is threatening to add products that were already excluded again, if their prices rise.
On January 7, it was confirmed that the price control on 14 products of the basic family food basket would be extended for six more months, a measure that was rejected by the Panamanian business sector.
Panamanian businessmen are opposed to extending price controls on 14 products in the basic family food basket for six months.
The list of products whose prices are controlled includes slank, ribbon steak, ground beef, whole chicken, rice, onions, yams, national potatoes, perita tomatoes, yucca, powdered milk, sliced bread, processed American yellow cheese and sausages.
Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand. The OHNE brand has 8 product lines: square bread, sweet...
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