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Calculate the volume of products sold. How to calculate the volume of products sold

One of the tools for reviewing the activities of an enterprise is calculating the volume of product sales. Product sales volume is one of the most important indicators, with the support of which production is carried out. centralized management enterprise and economic activities of the company in the aggregate.

Instructions

1. In order to calculate the volume of sales of products for certain types of products using the balance sheet method: Review the probabilities of the enterprise, based on the program of planned production for calendar year and expected product balances at the beginning of the year.

2. From the total number of these sources, subtract the volume of products going for processing and used by the enterprise itself for subsequent processing, and carryover stocks remaining for the remainder of the planning year.

3. Calculate the expected volume of product sales before the end of the annual reporting period, when the balance of products at the beginning of the planned year has not yet been determined. The economic justification for calculating the volume of sales of goods is provided only when the indicator of the volume of manufactured products is set positively, and is determined based on the production program of the enterprise.

4. Carryovers finished products at the end of the planned period, calculate according to the standards that determine the duration of the sales cycle for a particular enterprise. Calculating the volume of product sales becomes much simpler at those enterprises that do not use their own products for their own consumption.

5. Calculation of product sales volume is main factor accounting from the total number of economic instruments, the commonality of action of which contributes to the successful economic and financial action of the enterprise in modern conditions new system planning. Together with this calculation, you should also use such tools as monitoring the implementation of the product sales plan, monitoring the progress of product sales, indicator products sold etc.

The entire seller has successful days and many more. Occasionally, you may not close a single deal because you are selling too high or too low. It is very important to keep statistics on the sales of your products. This will greatly help in the prosperity of your company

You will need

  • – Calculation of average sales volume;
  • – control of the number of customers;
  • – review of competitors’ activities.

Instructions

1. Calculate last year's revenue and divide it by the number of sales made (all issued invoices, orders, contacts). If you don't know these numbers because you've just started selling, ask those who have skills in this field and have been working in it for several years. If such data is not available, proceed to independent calculations. The review should be carried out as funds accumulate.

2. Look at the resulting average sales volume. If this indicator is above the required level, then you will need fewer customers, and if it is below average, then look for more customers. Accordingly, based on these figures, calculate the required volume of sales, which should be of the appropriate size.

3. Conduct a survey of your customers after finding out the average sales volume. Potential for your development will be those customers who do not yet cost you that much. Calculate the time you spend servicing them. If you wish, you can transfer customers to other transaction data, and also replace any customer at any time and begin searching for more promising ones. All this allows you to regulate the number of products or services sold.

4. Get all the data about your hourly deals and daily sales volume. This will be a good indicator of professionalism, by which you can judge your abilities and your genre of work. Compare this indicator with competing organizations. If your sales figures are really a little higher, then you are an excellent seller, and your sales volume is calculated positively, and if lower, analyze your close and weaknesses before choosing other business tactics. If in any business you start, the sales figures remain the same, then it’s all about you and no one else.

The volume of produced or sold goods is the number of each product produced over a certain time interval (for example, during the reporting year).

Instructions

1. Determine volume goods in monetary terms. To do this, multiply its number by the cost per unit goods. The calculation may be different if the product is not homogeneous, and the cost, accordingly, varies. In this case, calculate the volume separately goods throughout the batch, and then add up all the resulting values.

2. Calculate volume goods in comparable prices (these are prices for a specific year or for a specific date). Such prices can be known or fixed, and also calculated through certain indicators (for example, through the level of inflation). In order to detect the volume goods in comparable prices, you need to multiply the number of each product produced by their cost for a particular year. You can also adjust the volume goods at current prices for the required indicator.

3. Detect Volume goods, implemented over a certain period of time (for a quarter, a year or six months). As usual, you must know the values ​​of the balances goods at the end, as well as at the preface of a given period. Consequently, in order to determine the volume goods within a certain period of time, add to the volume of production that was produced during a given period, balances goods for a preface of a given time. After this, subtract from the resulting amount the remaining products that were in the warehouse at the end of the required period.

4. Calculate the volume issued goods in monetary terms in the form of summation of finished products, which must be taken for the foreword and end of the reporting period. Later, subtract from the resulting value the sum of the balance of all goods produced for a certain period.

5. Determine volume goods taking into account the work in progress, but the one that needs to be put into production. To do this, from the volume goods, the one that needs to be released in this year, subtract work in progress goods to the preface of the period. Next, from the resulting value, subtract the volume of work in progress at the end of the period.

Video on the topic

Volume of sales products– perhaps the main indicator of the performance of an enterprise. The sales forecast for the next period depends on it, and on it, in turn, the required production volume. A review of this indicator allows you to assess the degree of plan implementation, the dynamics of sales growth (sales) and timely identify weaknesses and reserves to increase production and sales products .

You will need

  • Accounting statements of the enterprise

Instructions

1. Volume of sales products calculated in natural or value (monetary) terms. All necessary information for review, you can take it from the accounting or statistical reports of the enterprise.

2. Sold products in natural terms are how many pieces of parts the workshop smelted, how many meters of curtains the garment factory sewed, or how many square meters erected housing construction company. The main difficulty in calculating the volume of sales products in natural terms lies in a heterogeneous assortment.

3. Genuine if the plant produces only one type products, calculation of the volume of sales products comes down to counting units sold over the entire period. It is much more difficult if the enterprise produces a wide variety of products. In this case, the calculation of the volume of sales is used products in conventionally natural terms.

4. Calculation in conditionally natural expression is used for generalization various types manufactured products. For example, a soda bottling plant can produce mineral water, lemonade, iced tea, and every type of drink - in plastic bottles and cans, of various sizes, etc. Then some imaginary indicator is introduced, say, a 0.5 liter bottle of water. All other drinks are measured in terms of this standard bottle.

5. Volume of sales products can also be calculated in value (or monetary) terms. Products sold in value terms is the total volume products, shipped to customers and paid in full.

6. After calculating the volume of sales products you need to compare it with planned indicators, as well as with the volume of production products . This review will allow you to competently plan the need for sources and production rates products and predict subsequent sales rates.

Video on the topic

Every enterprise faces the inevitability of planning production volumes and sales of products. Calculation of product output is a mandatory element not only in production planning, but also in the work of sales and supply departments. In addition, the company's management needs to present production capacities calculated in natural and monetary equivalents. Let's talk about the meaning of production volume and its calculation.

Definition

In essence, the volume of output is the summed amount of goods produced over a certain period and expressed in various indicators. The significance of this indicator is due to two points of view:

  • financial, since it is the main volumetric value characterizing the scale production activities companies. The company is obliged to provide such information to higher organizations, founders, investors and other users;
  • strategic, since it positions the enterprise and provides conditions for concluding contracts and promoting in the market.

The units of measurement of production volume and product sales are the following indicators:

  • Natural (pieces, m, tons, kg);
  • Cost (in rubles or other currency);
  • Conditionally natural (in generalizing the assessment of the volume of output of heterogeneous products).

Output volume: formula

The main indicators characterizing the volume of production are the gross and commodity value of the product. Gross value is the monetary value of all company products and services provided during the reporting period. It takes into account the total cost of manufactured products, semi-finished products, services provided, changes in work in progress balances and intra-system turnover.

Commodity value refers to the cost of products produced by an enterprise and intended for sale. Fluctuations in the value of “work in progress” and intra-farm turnover are not included in the commodity value. In many enterprises, the values ​​of gross and marketable output are identical if there are no indicators of internal turnover and work in progress.

Gross production volume is calculated using the formula:

VP = TP + (NP k/g – NP n/g), where

VP and TP – gross and marketable products,

NP k/y and NP n/y – work in progress at the end and beginning of the year.

Equally important is the expression of production volume using natural values. This method is used when analyzing production volumes and sales of products by types and categories of homogeneous products. Production volume is calculated using the formula:

O pr = K x C, where K is the number of units of goods produced, C is the price of the product.

For example, if during the period under review 100 parts were produced at a price of 200 rubles. and 500 parts at a price of 300 rubles, then the total production volume will be 170,000 rubles. (100 x 200 + 500 x 300).

How to find product sales volume: formula

Product sales volume is calculated based on the size of products shipped or revenue received. It is important for the analyst to know how the product is being sold, whether demand for it is falling and whether to increase production volume. The indicator of the volume of products sold (in dynamics) answers these questions. It is calculated using the formula:

O rp = VP + O gpng - O gpkg, where

VP – gross product,

О gpng and О gpkg – GP balances at the beginning and end of the year.

For example, the volume of production for the year amounted to 300,000 rubles, the balance of the state enterprise in warehouses amounted to: 20,000 rubles. at the beginning of the year, 35,000 rubles. - finally. The volume of products sold was:

O rp = 300,000 + 20,000 – 35,000 = 285,000 rub.

Optimal output volume

The optimal production volume is one that ensures the fulfillment of the terms of the concluded agreements within the agreed time frame with minimal costs and maximum efficiency. The optimal volume is determined by comparing gross or maximum indicators.

Comparing gross values, calculate profits for various volumes of production and sales of products in the following sequence:

Determine the size of the output volume at which profit is equal to 0;

Calculate the volume of production with maximum profit.

Let us demonstrate the calculation of optimal values ​​using an example:

sales volume

price

revenue

gross costs

profit (revenue – gross costs)

permanent

variables

The essence of the calculations is to identify the sales indicator with zero and marginal profit. The table shows that the company will be able to achieve zero profit by producing from 15 to 20 parts. The profit will reach its maximum value when producing 50 pieces. In this example (with given cost parameters), a sales volume of 50 units will be the optimal indicator, and when concluding supply contracts, one should proceed from the optimal production size.

By comparing the marginal indicators, it is determined to what point an increase in production volume will be appropriate. Here the economist's attention is drawn to costs and income. There is a rule - if size limit income per unit of product is higher than the maximum cost, then production volumes can be further increased.

When calculating the optimal values, it is necessary to take into account factors affecting the volume of product sales. These include:

  • factors indicating the company's provision with material and raw materials, specialists, the use of new technologies and techniques, etc.;
  • factors that depend on market indicators, for example, product prices, market saturation with competitive products, purchasing power, etc.

Analysis of production volume and product sales

Analytical work begins with a study of production volumes and growth rates. Therefore, the primary tasks of analyzing production volume and product sales are:

  • assessment of the dynamics of production volume;
  • identifying conditions that influence changes in these values;
  • disclosure of reserves for increasing output and sales.

Problem 1

Determine the volume of products sold based on the data given in the table.

Solution

1. Volume of products produced (formula 1 table 1.11):

3750 120 000 = 450 000 000 rub.

2. Volume of products sold (formula 2 of Table 1.11):

450,000 + (76,500 - 22,000) + (30,800 - 13,200) = 522,100,000 rub.

Problem 2

Determine the volume of net production if the volume of products produced by the enterprise is 680 million rubles. The share of material costs together with depreciation charges is 58% in the volume of production.

Solution

The value of net production (formula 3 of Table 1.11):

680,000,000 - 680,000,000 58: 100 = 285,600,000 rub.

Problem 3

Determine the amount of conditionally net production based on the following data.

Solution

Using formula 4 of table. 1.11 and having made additional calculations, we determine:

1) profit from sales of products:

785,000-0.15: 100= 117,750,000 rub.;

2) size wages:

667,250-0.14: 100 = 93,415,000 rub.;

3) the amount of depreciation charges:

380,000-0.1 = 38,000,000 rubles;

4) conditionally pure products (formula 4 of Table 1.11):

93,415 + 38,000+ 117,750 = 249,165,000 rub.

Problem 4

Determine the volume of production in conditionally natural units in relation to representative product A based on the data given below.

Solution

1. The coefficient for reducing the labor intensity of production of the corresponding product to the labor intensity of the representative product:

product B 15:12 = 1.25;

product B 21:12 = 1.75;

for product G 26:12 = 2.17.

2. Production volume in conventionally natural units in relation to representative product A:

2500- 1 + 1200- 1.25 + 1500- 1.75 + 2100 -2.17=11,182 conventional-nat. units

Problem 5

Determine the volume of refrigerator production at the enterprise, the size of supplies to the domestic and foreign markets in the base and plan years, if the capacity of the refrigerator market in the country is 240 thousand units. per year; Atlant CJSC's share in this market is 76.5%.

In the coming year it is planned to increase it to 80%. The company sells 53% of its products on the domestic market. In the coming year it is planned to increase this share to 55%.

Solution

1. Volume of sales of Atlant CJSC products on the domestic market of the country in the base period:

240,000 76.5: 100 = 183,600 pcs.

2. Volume of refrigerator production in the base year

183 600 100: 53 = 346415 pcs.

3. Volume of sales of refrigerators abroad in the base year

346 4 1 5 - 183 600 =162 815 pcs.

4. Volume of sales of Atlant CJSC products on the domestic market of the country during the planning period:

240,000 80: 100 = 192,000 pcs.

5. Volume of production of refrigerators in the planning period:

192,000- 100:55 = 349,090 pcs.

6. Volume of sales of refrigerators abroad during the planning period:

349,090 - 192,000 = 157,090 pcs.

Problem 6

Determine actual utilization rate production capacity, if the workshop has 48 units of equipment with a productivity of 34 products per hour. The planned operating capacity of the equipment is 2860 hours per year. In fact, 4560 thousand products were produced.

Solution

Actual production capacity utilization factor (formulas 9, 13 table 1.11):

4 560 000: (48 34 2860) = 0,98.

Problem 7

Determine the possible production volume with a production capacity utilization factor of 0.89, if the production capacity at the beginning of the year was 38,000 thousand tons, the average annual introduced capacity was 15,000 thousand tons, and the average annual output output was 8,000 thousand tons.

Solution

1. Average annual production capacity (formula 12, table 1.11):

38,000,000 + 15,000,000 - 8,000,000 = 44,992,000 tons.

2. Volume of products produced (formula 13, table 1.11):

44,992,000 t 0.89 = 40,043,000 t.

Problem 8

Based on the data given in the table, assess the possibility of the enterprise producing products in the amount of 80,000 units. products. The planned production capacity utilization factor is 0.85. Specific capital investments per unit of power - 30 thousand rubles. The amount of funds the enterprise can use to increase production output is 385 million rubles. Draw a conclusion.

Solution

1. Input production capacity (formula 10, table 1.11):

42-1650 = 69,300 pcs.

2. Average annual production capacity (formula 12, table 1.11):

69,300 + 10,1740 (7:12) + 6,1200 (1:12) = 79,968 pcs.

3. Average annual production capacity required to ensure production in the amount of 80,000 pcs. (formula 13 table 1.11):

80,000:0.85 = 94,118 pcs.

4. Amount of missing production capacity:

94,118-79,968 = 14,150 pcs.

5. The required amount of funds to bring production capacity to a given level:

14,150 30,000 = 424,500,000 rub.

Conclusion. Available from the enterprise own funds not enough to increase production to the target level (80,000 units).

Problem 9

Determine the input, output and average annual power of the enterprise based on the data given in the table.

Solution

1. Production capacity of the machine (formula 8 of Table 1.11):

15,3990 = 59,850 parts per year.

2. Input production capacity (formula 10, table 1.11):

480,59,850 = 28,728,000 parts per year.

3. Output production capacity (formula 11 table 1.11):

28,728,000 + 10,59,850 - 5,59,850 - 8,59,850 = 28,548,000 parts per year.

4. Average annual production capacity (formula 12, table 1.11):

28 728 000 + 10- 15 - 3990 ∙ (10: 1 2) - 5 - 15-3990-(7: 12) - 8 15 3990 (1: 12) = 29,013,000 parts per year.

Problem 10

Determine the average annual production capacity and its utilization rate according to plan and actually, if the enterprise has a two-shift operating mode with an 8-hour working day. In the analyzed year there are 52 Sundays, 45 non-working Saturdays, 9 holidays.

During the year the enterprise did not operate due to overhaul 15 days. The time spent on setting up equipment is 4% of the operating time fund.

The enterprise has 300 pieces of equipment installed. From June 1, 15 units of equipment were put into operation, and from August 1, 10 units were put into operation. The hourly productivity of one machine is 7 products per hour. The production volume according to plan is 7693 thousand products, in fact - 7852 thousand products.

Solution

1. Efficient fund equipment operating time (formula 7 table 1.11):

((3 6 5 - 5 2 - 4 5 - 9) 8 - 1 9) - 2 0.96 - 15 2 8 = 3721 hours.

2. Average annual production capacity of the enterprise (formula 10.13 table 1.11):

300 3721 7 + 15 7 3721 (7: 12) - 10 7 3721 (5: 12) = 7,931,000 pcs.

3. Factor of utilization of production capacity according to plan and actually (formula 14 of Table 1.11):

According to plan: 7693: 7931 = 0.97;

Actually: 7852: 7931 = 0.99

Gross output is the cost of the overall result of the enterprise’s production activities for a certain period of time. Gross output differs from marketable output by the amount of change in work in progress balances at the beginning and end of the planning period.

Changes in work in progress balances are taken into account only at enterprises with a long (at least two months) production cycle and at enterprises where work in progress is large in volume and can change sharply over time. In mechanical engineering, changes in the remains of tools and devices are also taken into account.

Gross output (GP) is calculated using the factory method in two ways.

Firstly, how is the difference between gross and intra-factory turnover:

VP = V O -V N,

where В о – gross turnover; Vn – intra-factory turnover.

Gross turnover – this is the cost of the entire volume of products produced over a certain period by all workshops of the enterprise, regardless of whether these products were used within the enterprise for further processing or were sold externally.

Intra-factory turnover – This is the cost of products produced by some and consumed by other workshops during the same period of time.

Secondly, gross output is determined) as the sum of marketable output (TP) and the difference in the balances of work in progress (tools, fixtures) at the beginning and end of the planning period:

VP = TP + (N n - N k),

where N n and N k is the value of work in progress balances at the beginning and end of a given period.

Work in progress – unfinished products: blanks, parts, semi-finished products located at workplaces, control, transportation, in workshop storerooms in the form of stocks, as well as products not accepted by the quality control department and not delivered to the warehouse of finished products.

Work in progress is accounted for at cost. To convert work in progress balances into wholesale prices, two methods are used: I) according to the degree of readiness of work in progress based on the ratio of the labor intensity of work already completed and the labor intensity of the finished product; 2) according to coefficients characterizing the ratio of the cost of finished products in wholesale prices and the actual cost of the same products.

The expected balances of work in progress at the beginning of the planning year in the shops are determined from reporting data based on inventory.

At the end of the planning year, the standard for the balance of work in progress (N k) is calculated using the formula

N k = N day ´ C ´ T c ´ K r ,

Where N day – daily production output in physical terms;

T c – duration of the production cycle, days;

C – production cost, rub.;

Кг – readiness factor of work in progress.

The readiness ratio of work in progress is determined according to the methodology outlined above - by labor intensity or cost.

Gross output is calculated in current comparable prices, i.e. enterprise prices that are unchanged on a certain date. Using this indicator, the dynamics of total production volume, the dynamics of capital productivity and other indicators of production efficiency are determined.

Products sold characterizes the cost of the volume of products received in this period to the market and payable by consumers.

The cost of products sold is defined as the cost of finished products intended for delivery and payable in the planning period, semi-finished products of own production and industrial work intended for external sales (including major “repairs of own equipment and vehicles, carried out by industrial production personnel), as well as the cost of selling products and performing work for its capital construction and other non-industrial enterprises on the balance sheet of the enterprise.

Cash receipts associated with the disposal of fixed assets, tangible current and intangible assets, the sale value of foreign currency assets, securities are not included in the proceeds from the sale of products, but are considered as income or losses and are taken into account when determining the total (balance sheet) profit.

The volume of products sold is calculated based on current prices without value added tax, excise taxes, trade and sales discounts (for exported products - without export tariffs). Products sold for industrial works and services, semi-finished products of own production are determined on the basis of factory contract prices and tariffs.

The volume of products sold (RP) according to the plan is determined by the formula

RP = O n + TP – O k,

where TP is the volume of marketable products according to the plan;

O N and O K – balances of unsold products at the beginning and end of the planning period.

The balance of unsold products at the beginning of the year includes:

Finished products in the warehouse, including shipped goods, the documents for which have not been transferred to the bank;

Shipped goods for which payment is not due;

Shipped goods not paid for on time by the buyer;

Goods are in safe custody of the buyer.

At the end of the year, the balance of unsold products is taken into account only for finished products in the warehouse and shipped goods for which payment has not yet arrived.

All components of sold products are calculated in selling prices: balances at the beginning of the year - in current prices of the period preceding the planned one; marketable products and balances of unsold products at the end of the period - in prices of the planned year.

In accounting it is highlighted products shipped and delivered locally by the customer and products sold, in this case, the moment of implementation is considered to be receipt cash to the supplier's bank account. An enterprise can choose one of the accounting policy options: determine profit either by the difference between the cost and the cost of shipped products (i.e., until the customer actually pays for them), or only after the customer pays for physically shipped products. The company does not have the right to change its accounting policy during the year.

Based on the volume of products sold, its total cost and profit from sales are calculated.

A number of enterprises plan and evaluate activities based on net production, which is determined by subtracting material costs and the amount of depreciation of fixed assets from marketable products, which in market conditions corresponds to the concept of “gross income.”

The result of any activity manufacturing enterprise are finished goods intended for sale to the final consumer. The totality of goods sold by a manufacturer is called “sold products.” This concept implies the number of not only manufactured, but also sold goods. The result of sales is the proceeds from sales received to the company’s bank account.

Types of products

The production of the final product goes through several stages - from the stage of processing raw materials to storing the final product. Conventionally, the production process is divided into three stages through which an assortment unit must go through before becoming a finished product.

  • includes initial stages production of the final product, starting from the purchase of raw materials and the ordering stage of semi-finished products (semi-finished product).
  • Semi-finished products are products for which the technological production cycle is currently not completed. Further processing will be produced in-house or outsourced to third party suppliers. Sometimes semi-finished products may be sold to the end consumer - in this case, the buyer should be aware of the shortcomings of such a product.

  • Finished products are an assortment of products that have gone through all stages of the production cycle. The resulting products must comply with the technical specifications and current state standards, must be accepted by the quality control department and intended for sale to the final consumer.

Finished and sold products: similarities and differences

The company's products sold consist of the finished product range that was shipped to the buyer and for which money has already been received. The similarity between these two types is that all operations are carried out with products that have passed full cycle technological processing. The difference is that sold products are goods for which money has already been received, and finished products are those that were sold during the reporting period along with the balances in the warehouse that are still waiting for their buyer. If it is not sold, then the costs of its production will become costs for the enterprise as a whole.

Formula for calculating products sold

The volume of products sold is calculated using a formula that takes into account warehouses. This value should be tied to a specific time interval. The calculation formula is as follows:

RealPr = He + ProductPr - Ok,

where He, Ok - the remains of unsold products stored in warehouses at the beginning and end of the time interval.

Formation of the price of sold products

The selling price of finished products must correspond to the following parameters:

  • competitiveness;
  • profitability;
  • attractiveness for buyers.

These three factors underlie sales effectiveness. Let's look at each indicator in more detail.

Competitiveness

The cost of production of each product unit must lie within the price range provided by the main competitors. To do this, marketers determine a price positioning strategy in which the company's products fit into the realities of the market. To do this, they monitor competitors’ prices and form a range of retail prices into which the final price of the products sold should fit.

IMPORTANT! Price positioning depends on many individual factors: brand reputation, customer activity, intensity of promotion of competitive products.

Profitability

The cost parameter can be determined in two ways: by calculating the total cost of production of one unit of goods or by finding the final quotient of dividing the company’s total costs for producing a certain amount of products, which affect its volume and cost. When determining the final price, the products sold take into account two factors:

  • cost of production of a unit of goods or a standard batch;
  • which the enterprise bears in order to sell its products.

Cost calculation method

Manufacturing enterprises often cannot determine the cost per unit of finished products, but operate with statistics on a larger scale. The administration of the company knows how much money was spent on the production of batches of goods and how many units of finished products are in one such batch.

Using a similar method, you can calculate the cost of goods in a warehouse. To the amount of purchasing a product from the manufacturer, you should add the total costs of the enterprise for storing, accounting for the product and delivering it to the end consumer (or to the retail chain). Calculating profitability gives a minimum price below which the cost of a product cannot be lowered - its production will become unprofitable (unprofitable).

Attractiveness for buyers

The third stage is to assess the attractiveness of the product from the point of view of buyers. To do this, various surveys are conducted to assess the willingness of buyers to pay a certain price for a product.

Important! Each buyer expresses his subjective opinion, taking into account the characteristics of this product, but in general such surveys provide an objective assessment of buyer expectations.

Sold products are the response of each buyer to the choice of a product, brand or manufacturer.

Range of possibilities

As you can see, the price of products sold must lie within the narrow range of possibilities that profitability, competitors and buyers provide it with. Without observing this principle, it is impossible to predict sales growth and increase the rate of production of finished products - it is quite possible that, due to unattractiveness or high cost, finished products will gather dust in a warehouse, and then be disposed of or sold for next to nothing.

Results

For any manufacturing enterprise, sold products are a factor that directly shapes the profitability of the entity economic activity. Without a developed sales structure, the production process quickly stops and the company becomes insolvent. If missing government support, the company becomes bankrupt, people lose their jobs, and the owners of the company face the sad fate of bankruptcy.

To avoid a sad scenario, you should thoroughly study the market opportunities and take into account the prospects of the product being produced. Even an expensive product can find its buyer if it is desired by the majority of buyers.