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Tag: management overview

Pricing In The Product Mix

This is an example of how a bad product mix can affect us. Imagine you have in stock 100 pieces of Fabiany shirts “(I do not know if there is actually such a brand) and a stock of 100 units of Frenchy brand shirts “(if there is not really) It turns out that the shirt” fabiany “is very popular and today are popular addition to the profit margin of this product is approximately 25%. The shirts marked “frenchy” are of very good quality, have an excellent price that you win up to 35% and are quite popular but are not the most wanted. When a month has passed, the inventory of shirts “fabiany” is low, tools of the “frenchy” … there are still many questions, are you managing your inventory optimally? Obviously not. Even if you would like to sell more product than you get a higher margin on each unit sold, the reality of what your customers want is another and you must respond to that reality. If I was more aware of what happens in the market would have had more inventory of shirts, “fabiany” because they are also much in demand also an inventory that can satisfy buyers looking for the shirts “fabiany.” Is to reach this level of planning that must be business statistics and so when framing the budget for purchases and sales, be as close as possible to reality.

II. The pricing strategy. Another very important factor to consider when we talk about the establishment of the merchandising strategy concerns pricing strategy. Learn more on the subject from patrick dwyer boston private.

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