IMPACT OF PRICE INCREASE OF GOODS ON THE PROFITABILITY OF VENDORS IN THE INOPACAN PUBLIC MARKET

IMPACT OF PRICE INCREASE OF GOODS ON THE PROFITABILITY OF VENDORS IN THE INOPACAN PUBLIC MARKET

ABSTRACT
Price increase in goods has always been a major concern for vendors. This study determined whether the impact of a price increase of goods results in an increase or a decrease in the profitability of vendors. The researchers interviewed a total of 30 market vendors in the Inopacan Public Market. Frequency, percentage, and Pearson correlation coefficient were the statistical tools used in conducting this study. The data were analyzed using descriptive and inferential statistics. This study revealed that most of the vendors in the Inopacan Public Market were female vendors with ages ranging from 26-35 and 46-55 years old. It was also revealed that different factors were affecting the price increase of their products resulting mostly in a decrease in their profitability, especially those who had a smaller business. Competition among vendors and natural disasters like typhoons cause losses for the majority. This study also discovered the strategies of the vendors in dealing with the price increase namely relying on their good sales talk, relying on the quality of the goods they sell, and offering discounts to earn profit. There was no significant relationship between the percentage of price increase of goods on the profitability of vendors indicating a weak negative correlation. There was a significant relationship between the profitability of vendors and their monthly income indicating a strong positive correlation. The research offered information that could be used by vendors to develop their marketing and sales strategies and emphasizes the significance of being aware of the difficulties faced by small vendors in the marketplace.
Keywords: Price Increase, Profitability, Vendors, Retails, Business