Sales mix refers to the relative proportions of different products or services that a company sells relative to it’s total sales. Think of it like a pie. where each slice represents a different product or service, and the size of the slice reflects its contribution to overall sales. It is important to understand your business’s sales mix because it can have a significant impact not only on your profitability, but also how you manage stock levels, how you decide on marketing and sales strategies and on your overall business planning.
For example, if you sell a variety of products, but one product is much more profitable than the others, you may want to focus your marketing and sales efforts on that product. This will help you to increase your profits even if your total sales volume remains the same.
There are a number of factors that can affect your business’s sales mix, including:
The types of products or services you sell
The target market you are targeting
The competitive landscape
The economic climate
It is important to monitor your sales mix on a regular basis so that you can identify any changes and make adjustments as needed. This will help you to ensure that you are selling the right products or services to the right people at the right time.
