Implemented products are... Price and volume of products sold

The Result of activity of any manufacturing company are finished goods held for sale to the final consumer. The set of sold goods manufacturer is called “implemented production”. This concept implies a number of not only manufactured but also sold. Total sales is revenues received for the account of the company.

Products

The Production of the final product, goes through several stages – from the stage of processing of raw materials to warehousing of the final product. Conventionally, the production process is divided into three stages through which must pass the product unit before becoming a finished product.

• Work in process includes the initial stages of the manufacture of the final product, ranging from procurement of raw materials and zakazchika stage of the semifinished product (semi-finished).
• Semi-finished products – products whose production cycle is not currently completed. Further processing will be made by the company or given to third parties. Sometimes the semi-finished products can be sold to the final consumer - in this case, the buyer should be aware of the shortcomings of this product.

• Finished products – variety of products which have passed all stages of the production cycle. The resulting product must meet the specifications and the current state standards must be accepted by the quality control Department and intended for sale to the final consumer.

Prepared and implemented products: similarities and differences

Implemented the company's products consists of finished products which were shipped to the buyer and has already received the money. The similarity of these two types is that all operations are conducted with products that have passed the full cycle of technological processing. The difference is that the implemented production – a product that has already received money, finished products – the one that was sold during the reporting period, together with the remnants of stock, still waiting for a buyer. If the finished product will not be sold, then the cost of its production will be costs for the enterprise as a whole.

The calculation Formula of sales

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

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- Realpr = He + of Towardi – OK

Where is He, OK – the remnants of unsold goods stored in warehouses at the beginning and end of a time interval.

Formation of prices of products sold

The Selling price of finished products should meet the following parameters:

• Competitive position
• Return;
• The appeal to buyers.

These three factors are the basis of sales performance. Consider each indicator in more detail.

Competitiveness

The Cost of production of each product unit must be in the range of prices submitted by major competitors. To do this, marketers define the positioning strategy of the prices at which the company's products fit into market realities. This monitor competitor prices form a range in retail value, which must fit the total price of products sold.

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: to calculate the total cost of producing one unit of product or to find the final quotient from dividing the total expenses of the company to issue a certain number of products affecting its volume and value. Realized products in the formation of the final price takes into account two factors:

• Cost of production per unit of product or standard of the party;
• Commercial expenses incurred by the company in order to realize its products.

costing Method

Manufacturing enterprises are often unable to determine the unit cost of finished products, but use the statistics of a larger scale. The administration of the company knows how much money was spent on the production of quantities of goods and how many units of finished products one such party.

This method can be used to calculate the cost of goods in the warehouse. The amount of the purchase of goods from the manufacturer should add the total cost of enterprise storage, inventory and delivery to the consumer (or retail chain). Calculation of profitability provides a minimum price below which the cost of production can not be omitted – its production will be unprofitable (unprofitable).

Attraction for buyers

The Third stageis to assess the attractiveness of the goods from the buyers ' point of view. For this are various surveys that assess the willingness of customers to pay a certain price for the product.

Important! Each buyer expresses his subjective opinion, taking into account the characteristics of the product, but overall, these surveys provide an objective assessment of the expectations of customers.

The Implemented products – the response of each customer to choose products, brands or manufacturer.

Range of possibilities

As you can see, sales prices must lie in a narrow range of possibilities, profitability, competitors and buyers. Without this principle it is impossible to predict the growth of sales and increase the pace of production of finished products – it is possible that due to the unattractiveness or the high cost of the finished product will be collecting dust in the warehouse, and after – disposed of or sold for a pittance.

Results

For any manufacturing enterprise production is realised – is the factor directly shaping the profitability of the business entity. Without a developed structure of the sales production process stops quickly, the company is insolvent. If there is no government support, the firm goes bankrupt, people are losing their jobs, and the owners of the company waiting for the sad fate of bankrupt.

To avoid unfortunate scenario, you should thoroughly examine the market opportunities and perspectives of manufactured goods. Even expensive goods can find a buyer, if it is desirable for most buyers.