Sales Mix

Sales Mix
The relative amounts purchased of each of the products or services a company sells. A clothing company's sales mix might include 100 pairs of shoes, 200 shirts, 100 jeans, 25 suits, 50 dresses and 200 accessories. Sales mix is important because some of a company's products or services may be more profitable than others. If a company's sales mix changes, its profits may rise or fall accordingly.

A company that is not performing as well as it would like can analyze its sales mix and see if changes can be made to increase profits. Perhaps the company should deemphasize or even stop selling a low-profit product or service and focus on increasing sales of a high-profit product or service. Also, investors may look at a company’s sales mix to see if its prospects for overall growth and profitability look promising.

Investment dictionary. . 2012.

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  • sales mix — ➔ mix * * * sales mix UK US noun [C] COMMERCE, MARKETING ► the combination of different products and services that provide a company s total sales: »A change in the sales mix towards larger detached homes also contributed to their increase in… …   Financial and business terms

  • Sales Mix Variance — The difference in the quantity of customer purchases of each product or service compared to the quantities that a business expected to sell. Sales mix variance compares the actual mix of sales to the budgeted mix. The metric can be used for… …   Investment dictionary

  • sales mix — / seɪlz mɪks/ noun the sales and profitability of a wide range of products sold by a single company …   Dictionary of banking and finance

  • sales mix profit variance — See: sales margin mix variance …   Accounting dictionary

  • sales mix — The relative proportions of individual products that make up the total units sold …   Accounting dictionary

  • sales mix — The relative proportions of individual products that make up the total units sold …   Big dictionary of business and management

  • sales mix profit variance — /ˌseɪls mɪks prɒfɪt ˌveəriəns/ noun the differing profitability of different products within a product range …   Dictionary of banking and finance

  • mix — [mɪks] noun [countable usually singular] a group of different things combined together for a particular purpose: • If the investment manager picks the right mix of bonds, his total return should rise quickly. ˈasset ˌmix FINANCE a mix of… …   Financial and business terms

  • sales margin mix variance — sales mix profit variance In standard costing, the adverse or favourable variance arising as a result of a difference between the actual mix of sales achieved and the standard mix of sales. It is the difference between the actual total sales… …   Accounting dictionary

  • Sales variance — is the difference between actual sales and budget sales. It is used to measure the performance of a sales function, and/or analyze business results to better understand market conditions.There are two reasons actual sales can vary from planned… …   Wikipedia

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