Note: The following article was written by Ritesh Arunkumar 8F
Everyone rushes to the store to get the latest iPhone or the newest and greatest TV, whatever the price may be, but what actually decides the price? And is it better if it costs more?
Factor 1: How many were produced
Many items' prices are based on how many were made. For example, the 2026 Porsche 911 GT3 Earls Court 51 Edition; there are only 51 units, making it rare and highly sought after, meaning people will pay more for it knowing they are 1 of only 51 people who own this car. But a normal mass-produced car like the Toyota Corolla won't be as high of a price, as it is mass-produced and people can get it at almost any time.
Factor 2: The materials used
The material an item is made of could also affect it, as if a certain material is harder to acquire, then the item with that material in it would be harder to get as well.
For example, a normal phone with aluminium alloys as the frame compared to a special edition gold frame. The gold frame phone would cost more, as gold is harder to acquire, therefore increasing the price of the phone to make it harder to buy.
Factor 3: The age
The age affects items in different ways, as normally the older the item, the lower the price. This is the truth for household items like washing machines, dryers and fridges, but other items such as cars become more sought after and rarer as more and more of them disappear or break down, and one in quite good condition may sell for a higher price. For example, the 1995 McLaren F1, when new, cost around $815,000, but now, in an auction, it sold for $20.46 million. But a normal Honda Civic over 5 years will decrease in value.
Factor 4: Market
If a company is making an item in a competitive industry, they will price their item close to their competitors' prices and maybe even a bit lower so they get more units sold than their competitors. For example, the HP OmniBook, which is available for £799, and the Lenovo IdeaPad Slim 3 costs £729. They are both mid-range laptops used for work and are priced quite closely, showing that the competition also affects the price.
Factor 5: The Brand
The brand affects the price, as its image as an essential company or a luxury company decides the price for its items, as nearly all of Gucci's items cost over £100, but Primark is known as an essential company people go to get clothes at, where each piece of clothing costs around £3–£10 and is cheaper in some cases. Where the luxury companies have 1 special thing about them that makes them stand out, such as the car industry, where Pagani, where every car is hand-crafted and fully carbon, which makes their image as luxury, this affects the prices of their cars, which is around £4 million on average.
Conclusion
Overall, many factors affect the price of an item, but different industries have a different factor affecting them the most. For the car industry, it might be the brand. For the electronics industry, it might be the materials used, but all of these factors affect nearly every industry in some way.
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