The preference of a monetary system is determined by considering several factors. Among them includes a wide range of production parameters which affect the rate at which goods and services are produced into the market. On the other hand, the preference is determined by the parameter affecting the customer behaviors in their purchasing (L. Meehan, 2015). Money and bargaining is the two main systems which the markets in the universe utilize in the process of buying and selling both goods and services. In my opinion, I prefer the money system where customers, retailers and producers have the fixed charge on a certain items or services.
Time is one of the most precious commodities with limitations. It is fixed presuming that it can neither be added nor reduced from its original state (Hibler, 2015). Considering this factor, one can conclude that with the bargaining system, there is a ...view middle of the document...
For this reason, it is right to presume that a money stem is better as it helps one plan prior to purchasing either a good or service. Planning and budgets especially in big institutions are a crucial policies in purchasing an item, it is therefore easy to purchase on a fixed cost basis to allow proper planning and budgeting(Hibler, 2015).
Buyers’ behaviors as mentioned in the first paragraph also constitute when deciding the preference system. In some case, buyers will have an altitude to bargaining units especially when sellers have agreed to lower their prices. This creates an over-pricing and misleading attitude on the customers from the buyers. This is as opposed to the fixed cost (money) system where the customers have a fair pricing attitude (L. Meehan, 2015). However, to the sellers’ advantage, the bargaining system offers them instances where they make high rated percentage profits when the customers lack good bargaining skills (L. Meehan, 2015).
In conclusion, considering the above factors, it is right to presume that a fixed money system is better that a bargaining system. Time resource wasted is one of the supporting factors where the bargaining system wastes time as opposed to the fixed money system. In addition, customers prefer fixed prices systems where they can plan and budget prior to purchasing the goods or services. Finally, the customers’ attitude on bargaining in most cases is over-pricing and mistreatment. For this reason, they opt to go for the fixed system where pricing is fair. Just to mention, in some way, the bargaining system helps the sellers get more percentage profits especially in cases where the customers have poor bargaining skills (L. Meehan, 2015).
Hibler, W. (2015). Bargains or Fixed Price Shopping? - My Personal Experience : USA. Discoverabroad.com. Retrieved 20 February 2015, from http://www.discoverabroad.com/us/Mpe/Bargainsorfixedpriceshopping.htm
L. Meehan, C. (2015). Fixed Price Vs. Cost Plus. Small Business - Chron.com. Retrieved 20 February 2015, from http://smallbusiness.chron.com/fixed-price-vs-cost-plus-2220.html