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Think about it. You live on an
almost self-sufficient smallholding with chickens, selling the eggs from a
stall at your roadside gate. How do you price your eggs? Do you
meticulously work out your costs of labour, food and housing plus a profit
to arrive at a cost per dozen? Well, you probably should do that but in all
probability you will pop down to your local Waitrose to check out the
market price, then price your eggs accordingly.
Of course, if you sell at your
meticulously worked out price, by disregarding what the market is telling
you, you may be in for a nasty shock. If, by chance, your price and that of
Waitrose are aligned, happy days. If, however, you are way more expensive,
sales will be slow to non-existent as it is unlikely your egg buyers are
unaware of the market price. If, on the other hand, you are way below
market price you will sell out quickly. Soon you will ask yourself, or more
likely your customers, why?? Then, as your production is likely finite, you
will adjust your prices upwards.
The fact is that whether you sell
eggs, beer or fishing, the concept of the rural economy as separate and
distinct to the economy as a whole, is something of a fiction. Rural
business owners may be defined by location but in reality we all march to
the same macro and micro economic tunes as every other business; be it a
widget maker in Wolverhampton or a basket weaver in Cumbria.
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