Technological development. Companies are constantly making improvements to the technological process, which allows them to reduce costs. With the same amount of raw materials, it is possible to produce more finished products and, as a result, increase the supply.
Cost of resources. When they become usa phone list more expensive, the production of products, on the contrary, costs more. Due to the limited available resources, the maximum possible output decreases.
Competition. In a highly competitive market, it is difficult to gain customers' attention. In addition, resource consumption increases, which also reduces output.
The opposite of perfect competition
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Tax burden. As the tax rate increases, the cost of the final product increases, which leads to a decrease in demand. The manufacturer is not interested in mass production of unclaimed products, which means that supply also falls.
Manufacturers' expectations. This takes into account the preferences of the target audience. That is, if the owner of the company believes that the demand for his product will increase after some time, he can supply less now in order to increase sales revenue in the future.
In addition, the offer depends on seasonality, traditions and prices of substitutes.
The development of a company's development strategy must be carried out taking into account a wide variety of factors. In this case, it is necessary to strive for maximum accuracy, otherwise there is a risk of significant losses. Non-price factors affecting supply and demand are difficult to predict. Therefore, probable deviations must be taken into account.
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Internal structure of demand
To increase product sales and correctly select the target audience, you need to have an idea of the internal structure of demand. It depends on the product's useful life and is specific to the raw materials intended for the manufacture of final products.
Total demand for durable goods includes:
Initial demand is formed by buyers who have not previously used the product.
Substitution demand is associated with the replacement of an obsolete product with a new one.
Additional demand – occurs when a product is purchased as an addition to a previously purchased one.
Let's say a customer wants to buy two mixers: one for home and one for the dacha (maybe it will come in handy). It is logical that the consumer will have different requirements for the quality and cost of both products.
Internal structure of demand
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Demand for non-durable goods is formed as a result of:
First purchase – the buyer is unfamiliar with the product (for example, it has a different manufacturer) and wants to check it out.
Repeat purchase – if the buyer is satisfied with the quality of the product, he buys it again.
The structure of demand for raw materials should be considered separately. Its characteristic feature for such products is a direct dependence on demand for finished products. However, the acceleration principle is in effect here: when demand for consumer goods increases only slightly, there is a sharp jump in demand for raw materials.
Example . Five machines are used in production, which ensures a total output of 10 thousand units of goods per year. From time to time, due to wear and tear, the machines must be replaced. On average, the enterprise needs to purchase one new machine every year. Let's assume that the demand for manufactured products has increased by 10%, which means that the annual output can reach 11 thousand items per year. Then the manufacturer will have to additionally purchase one unit of equipment, i.e., its demand for machines this year will double.