Sales Mix

Sales Mix is a mixture of different products and the services of a company that make a complete sale of that company. In most of the cases the sales of a company are the mixture of different products and services where each product or each service provided different profit to the company as a result the profit of the company varies from one period to the other. This means if a company sells a new product that is yielding low profit that may be possible that this sale will decline the profit of the company even if the sales are made aggressively. On the other hand if a company drops the idea of selling low profit product and replaces the low profit product with high profit yielding product then it will result in increasing the profit of the company even if the sales are normal or declines as compared to earlier sales. The best way of company to improve its sales and to earn additional profit through selling their goods and services is to introduce such a sales mix that has high profit earning products within the sales mix. When designing a new sales mix for the company the mangers and decision makers must find out which activities and products may result as a constraint over the company as there may be some products that need more bottle neck time as compared to other products and may leave a little room for the production of the new units of the product.

Sales Mix Model

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