What factors can affect the price of a product during the sourcing process?

There are quite a few things that can impact product pricing, so here’s a quick rundown:

• Raw Material Costs: Prices for materials like metals, fabrics, or plastics can fluctuate, which directly affects the final cost.
• Order Volume: Bigger orders usually mean lower prices per unit – think of it as a bulk discount.
• Customization: Adding custom branding, designs, or fancy packaging? That’ll typically cost more than sticking with standard options.
• Labor Costs: Sourcing from regions with higher wages or stricter labor laws might push prices up a bit.
• Market Demand: High demand or seasonal spikes can drive prices up, especially for trending products.
• Shipping & Logistics: Don’t forget the cost of getting the goods to you – freight charges, customs duties, and shipping distances all add up.