Listen to a Business English Dialogue about Fixed price
Sean: Hi Elizabeth, do you know what a fixed price is in business?
Elizabeth: Yes, it’s a price that remains constant and doesn’t change over time or based on demand.
Sean: That’s correct. Fixed prices are often used for goods or services where the cost is known and stable.
Elizabeth: So, what are some examples of products or services that are typically sold at fixed prices?
Sean: Items like groceries, movie tickets, and certain utility services are often sold at fixed prices.
Elizabeth: I see. So, fixed prices provide certainty for both buyers and sellers?
Sean: Exactly. They simplify transactions and make budgeting easier for consumers while ensuring stable revenue for businesses.
Elizabeth: That makes sense. Are there any drawbacks to using fixed prices?
Sean: Well, in some cases, fixed prices may not reflect changes in market conditions or production costs, which can impact profitability.
Elizabeth: I see. So, businesses need to carefully consider their pricing strategy to account for potential fluctuations?
Sean: Yes, it’s important for businesses to periodically review their pricing strategy and adjust as needed to remain competitive.
Elizabeth: Thanks for explaining, Sean. Fixed prices seem straightforward but can have implications for businesses’ bottom line.
Sean: No problem, Elizabeth. It’s important for businesses to strike a balance between offering competitive prices and maintaining profitability.