These subjective and objective circumstances that have a direct impact on the planned sales level make up a whole list:
Seasonality . Numerous categories of goods are not in constant demand by consumers, but for several months a year. For example, clothing, footwear and other equipment for winter sports experience a sales peak from late autumn to early spring. Accordingly, minimal interest should be expected here during the warm season.
Fluctuations in supply and demand in the market for similar goods.
The rise, fall or stagnation of email database lists australia business among your direct competitors in the market.
Legislative factor . Changes are constantly occurring in this area. For example, customs duties, tax rules, harmful emission standards, logistics regulations, for example, restrictions on the passage of freight transport within the city limits, and much more may change.
Repurposing of production . In order to increase the profitability of the enterprise, the owner can curtail production that has become unprofitable and switch to more popular goods.
Pricing . Depends on the dynamics of the cost of raw materials and materials and, as a consequence, on the finished products of the enterprise.
Fluctuations in purchasing power of the population . A clear example: during the COVID-19 pandemic, which was accompanied by massive reductions in the working week, this indicator decreased in many countries.
Changing distribution channels for products .
The number of employees with a certain qualification who are engaged in the implementation of the current and strategic tasks of the company.
The place, authority and prestige of the company in the market of similar goods. The consumer makes a choice in favor of those brands that meet his expectations in terms of price and quality.
Factors Affecting Sales Budget
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The following list shows the factors that need to be forecasted to accurately calculate a business's sales budget:
The amount of discounts that a company can withstand without harming itself. The buyer always reacts positively to this, significantly increasing sales figures. But the manufacturer must clearly understand where the discounting boundaries are, otherwise it will negatively affect profits.
Inflation rate . This is a global economic reality that must be taken into account when preparing a sales budget. In other words, price increases must be included in the financial plan in advance.
Payment deferrals . Reduce the company's financial performance. The deferral is granted to the buyer in whom they are interested. But no matter how much you want to keep the client, you need to remember that every such day means a loss. About 1.2% of the uncollected amount is eaten up by inflation, another 0.8% is money that could work for your business. In total, over the course of a month, the uncollected amount melts away by about 2%.
Force majeure . These are circumstances that cannot be predicted. Natural and other cataclysms, sanctions, license revocation, state restrictions – such cases cannot be predicted and reflected in figures when drawing up a sales budget. Only a highly qualified specialist can calculate the hypothetical damage in the event of a particular force majeure.
Know-how. There is a widely known case of a significant increase in Heineken beer sales due to a strike at a St. Petersburg brewery. Regular customers were eager to stock up on their favorite drink. As we can see, financiers who make up the company's sales budget should think about non-standard factors that affect these indicators. In particular, a strike at a prestigious enterprise provoked an increase in sales, and stock market players were able to play for a fall and buy shares of a popular brand cheaper than the face value.