Prices are determined by how much is selling. If there is a shortage in the item your looking for then when you find it the price is going to be higher then if you bought it when there was an aubundance. As more are produced and they don't sell prices drop and eventually a sale will be put on to try to get rid of the remaining amount left. When this happens and prices drop you can increase prices in two ways.

1st- Stop producing the product, this will intentially create a shortage making prices go up so you get paid more if the price is still low enough that people are willing to buy it.

2nd- Lower Prices, lowering prices will get more people to buy your product then were originally planning. Then you sit back and hope they talk about how good your product was, through word of mouth your going to slowly get more sales and hopefully increase prices.

Both these are temporary ways to put an item thats almost at the end of it's life back into the spot light for a limited time. These will not keep an item flowing through the market so eventually you'll have to give up and put out something new. All major companies do this when they come out with new products. You can buy an XP now for a dime but you can't get a good Vista loaded computer for the same prices. It's not that it cost more to put Vista on the computer but more of people want it more now since all the kinks are out so they can afford to charge more to put it on a computer so the company selling it to you has to charge more to make a profit.

The Effects On Our Economy

Supply & Demand has a huge effect on our economy and visa versa. Supply and Demand can make or break our economy because of what we choose to do.

Supply & Demand-

When the demand goes up more money transfers hands increasing the GPD of Our Economy.

When the demad goes down the prices become cheaper because they are trying to get rid of the excess product that they have.

OverView

If we spend smart then the economy will do fine. It's a balance that we need, if you spend to much and end up behind and in debt then you hurt the economy but if you spend extra cash and can still pay bills then your doing your share of trying to get and keep the economy at its peak.

Now with sustainable technology of internet, a tension in Middle East can raise the price of oil in a blink eyes. A certain information will be spread to everywhere in the world in the real time. Consequently we must face the roller coaster of price. This condition makes Monetary Ministers of any country also Central Bank Governors confused, because they do not know what they should do. Every government is busy to control the inflation rate. Nowadays inflation rate is essential thing for politic.

In the past the price of commodity depend on law of supply and demand. Now the price of oil and other commodities not only depend on supply and demand but also by investment movement done by investors. For the sake of maximisation return for their clients, investment managers think they should do something. They believe if an investment of a commodity is good, automatically the flow of the money will go there, this will make "unreal demand". The need of more food in China and India is not the only factor that makes the price of food increase; the money flow also contributes to the increase. After several time the bubble burst happens and the prices will get cheaper. This shows that the movement of money no longer depend of supply and demand.

Now, all of us must be ready to face the roller coaster of price, which is caused by monetary power. All entrepreneur and marketer must be able to fight in this condition.

In this new wave era, there are three main Driving Forces: Digitalisation, Globalisation and Futurisation.

Digitalisation could make a person be powerful, as long as he has internet access. The interaction of people in the internet, who influence and help each other, will make a powerful impact. No wonder if there are many social networking in the internet like, Facebook, Friendster, Multiface, Yahoogroups etc. And there are so many wireless devices to access internet like notebook/laptop, mini notebook, PDA, Blackberry, mobile phones, iPod, etc.

Globalisation includes Politic, Legal, Economy and Social-Culture. Globalisation becomes more intense because of digitalisation, especially because of Web 2.0 technology.

We must know that the future will always change. Something remain unchanged is the change itself. The future situation will be far different from something in this moment or in the past. Futurisation has happened, is happening and will continue to happen.

The market will always change, so divisions in a company like marketing section or accounting section is no longer effective. Every people in the company must have market orientation. In this New Wave Marketing era, everyone is marketer. Everyone will serve the customer, directly or indirectly. Marketer must also responsible for return from marketing program he runs.

Do not be afraid to change and be changed. To face the forever changing market every company should have a ”New Lifestyle”. Put down the old rule and paradigm. Have a new strategy and be ready for forever change of market. This statement is really extreme: Change … or die.

Each business outlet has a responsibility to ensure that transactions of the organization are conducted in a proper fashion. Through the process of supply chains, business form strategic relationships in an effort to effectively move products and services of the organization from one venue to another (Schneider, 2004, p. 207). Following these processes is the stage referred to as the supply chain. Products and services include the following phase's relative to design, promote, produce, market, delivery each branch provides a structure for the product or services rendered. The (SCM) or supply chain management aspect of the organization bears the responsibility of making sure the consumer gets the best possible price in comparison to the competition. Officials in management have the capabilities to identify the publics which are the best suitable clients for the organization. Business practices are performed in a challenging and competitive environment as business situations continue to evolve. Process should be stream-lined to fit the customers request and expectations. Supply chain management involves managing sound relationship with business partnerships.

Relationships between businesses via web-sites are commonly referred to as (B2B). To understand these practices better consider a company that sells discounted mortgages. One example of this type of enterprising relationship can be viewed here.

(B2B) sellers are familiar with the techniques involved in offering a product that is in-line with the customer needs. During this complicated process the importance of identifying a selective group of clients is the initial step to selling a product (Schneider, 2004). Companies use leverage to transmit a message by way of producing the most cost effective design. For example, mortgage auction web-sites give companies a cost efficient way of disposing of government repossessed, dilapidated, or otherwise discounted homes. These businesses provide software for bidders and sellers and offer a wealth of knowledge relative to on-line auctions .Companies has the opportunity to invest in a particular geographic location that share in personal areas of interest. Companies are also capable of capitalizing on interest by offering virtual web-sites to customers and suppliers. The world-wide webs serve as a productive form of communication.

Referred to as (B2C), or business to consumer transactions frequently occur on the web. Businesses often sell products or services to individual consumer during this type of relationship (Schneider, 2004). Sales in this sector are continuously increasing as a result of rapid growth potential. Businesses to consumer relationships are inter-related with electronic (2008) and are generally linked to financial institutions and several other different types of business practices. B2C are stemmed from internet marketing. The larger types of B2C companies have existing intermediaries which include informers and brokers. Informers lists web-sites information based on the goods and services that the site provides.

Although B2C verses B2B relationships have challenges, both provide some advantages to the publics. One challenge is to provide an avenue of traffic in an effort to sustain the dedication and commitment to the customer (2008). For example, the advantage acquired from B2C is such that e-commerce includes pricing which may fluctuate with the economy, shopping conveniences can be expedited for convenience, integration is incorporated with the website, and options in telecommunication provides a lightning speed experience. The e-commerce environment when managing e-business relationships reduce cost requirements and time with customers transactions, trade is increased over geographic locations, and new buyers and sellers can be easily located on given basis for statistical data.

According to Gunasekaran, A and Cheng T. supply chain management has been constantly making improvements in competitiveness between B2B and B2C operations. Businesses are gaining momentum and receiving recognition on web-sites following these relationships. B2B and B2C web sites have their differences and yet each are reaping the benefits of the competitive advantage and improving the growth potential of the organization. Furthermore, web sites are gaining partnerships and alliance to achieve their goals. Issues of cost and integration are no longer a factor in the efforts to maintain loyal and dependable customer relationships-commerce environments have the capability to achieve speed and flexibility. In contrast, a considerable cost lends a great deal of respect and attention to receive an integrated supply chain with the assistance of a pretentious web-site. Based on the fact that B2B and B2C websites improves operational performance the supply chain management are responsive towards these techniques.

It all begins with a farmer, not a garment maker. He plants seeds, helps them to grow and harvests the cotton crop. Already the fiber in your shirt has been through a whole year-long process.

The raw cotton goes to a mill, where it is scoured and processed to turn it into thread. The thread is then woven into a fabric. The fabric is then pre-shrunk and treated with dressing and softener to give it a good handle. It is shipped out in rolls to various wholesalers and retailers.

A fashion designer walks into a fabric Wholesaler and purchases the cotton fabric. He goes back to his studio and makes a sketch of his idea. Then, he develops a pattern from the sketch. He makes a sample to check the pattern for fit. If necessary, he will go back to the drawing board and make improvements. Improvements will be sampled again. Once he is satisfied, he will grade the pattern into different sizes for mass production. Pattern making and grading are often also outsourced from a pattern maker, adding another person to the supply-chain.

He goes to a CMT company (Cut, make and trim). The fabric is rolled out onto a long cutting table. It is laid one layer upon another. The pattern pieces are carefully laid out for the most economical use of the fabric with minimum waste. A Cutter uses an industrial cutting machine to cut out the panels of the garments.

Garments are not usually sewn together by one single person. Instead, a factory production line will have the first person ironing in the fold, the second person will stitch a seam, and the third person will sew just the darts, and so on until the garment is complete. In this way the production line works out more time-effective. It also eliminates errors. Each person gets to perfect their little task.

Yours is a special garment though. It has been finished with custom dyes and prints. The surface of the fabric is covered with intricate block prints over hand dyed backgrounds.

The dyer works on the fabric before the printer. It is washed to remove any residual chemicals from the mill and oils from the factory that might affect the dye process. Then it is manipulated and folded. The folds are fixed in place with tight elastic bands and string. The fabric is submerged in hot dye and left to stand overnight. The next day it takes many washes to remove all the excess dye. The garment is dried indoors for best results.

The choice of color, finish and design usually lies with the fashion designer. The printer and dyer are very often only technicians. A graphic designer or textile designer is employed as a freelancer at this point to design something unique if the fashion designer has no ideas of their own.

The printer takes the image that the fashion designer supplies and creates an original block which will be used for stamping the print onto the fabric. The design is traced onto the block and then it is carved out by hand with carving tools. The block is inked up with a roller and placed on the fabric ink-side-down. A rubber roller is used to apply pressure to the back of the block and push the ink into the fibre of the fabric. The ink is left to dry and then it is heat-set with a press.

The journey of your shirt is still not over.

It goes back to the factory for finishing, which involves steaming and pressing out of all creases, packaging and labeling.

The fashion designer collects his shirts and distributes them amongst his retail outlets, where you buy one.

Imagine how much more complicated the process is if your shirt is shipped in from another country. Once you realize how many hands have handled it before you did, you will make sure you wash it before you wear it when you get home from the store.