Sales Mix

What is a 'Sales Mix'

A sales mix is the relative amount 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.

BREAKING DOWN 'Sales Mix'

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.

RELATED TERMS
  1. Sales Mix Variance

    The difference in the quantity of customer purchases of each ...
  2. Sales Price Variance

    The difference between the amount of money a business expects ...
  3. Sales Lead

    A prospective consumer of a product or service that is created ...
  4. Net Sales

    The amount of sales generated by a company after the deduction ...
  5. Indirect Sales

    The sale of a good or service by a third-party, such as a partner ...
  6. Return On Innovation Investment

    A performance measure used to evaluate the effectiveness of a ...
Related Articles
  1. Personal Finance

    Microeconomics: Factors Of Business Decision-Making

    by Marc DavisThe process by which businesses make decisions is as complex as the processes which characterize consumer decision-making.Business draws upon microeconomic data to make a variety ...
  2. Investing

    Net Sales

    Net Sales is an accounting term used to analyze a company's performance. It is the sales revenue that remains after deducting for product returns, damaged or missing products, and discounts. ...
  3. Economics

    Understanding Gross Sales

    Gross sales represents the overall revenue of a company through its sales activities.
  4. Economics

    Mixed Economic System

    Many of today's democracies operate under what is known as a mixed economic system, which combines aspects of capitalism and socialism.
  5. Professionals

    Sales Director Career Provides Daily Challenge

    Find out what you need to do to close the deal on this investment management position.
  6. Economics

    What Is The Difference Between Revenue And Profit?

    Think of revenue as the top line of a company’s income statement. Profit is the infamous bottom line.
  7. Investing Basics

    Contribution Margin

    Contribution margin is a cost accounting concept that allows a company to determine the profitability of individual products.
  8. Economics

    What is the Retail Sales Report?

    The retail sales report is a measurement of the goods that retailers sell based on a sampling of different stores.
  9. Investing Basics

    What Does Window Dressing Mean?

    Window dressing is the actions taken close to the end of a reporting period by managers to try and make their financial numbers look better.
  10. Investing

    Return on Sales

    Return on Sales is a financial ratio that is used to measure a company's performance. Specifically, it is Operating Profit divided by Net Sales. The result is a percent, such as 10%, that indicates ...
RELATED FAQS
  1. What components are factored in determining net sales?

    Understand the key components that factor into determining a company's net sales. Learn about the underlying drivers of those ... Read Answer >>
  2. What are some common features of a mixed economic system?

    Look at a brief overview of the defining features of mixed economies, such as political and economic competition for resources ... Read Answer >>
  3. What is the point of calculating gross sales?

    Learn how doing simple gross sales and gross profit calculations can serve to help change a company's profit ratio and overall ... Read Answer >>
  4. What is the difference between a command economy and a mixed economy?

    Learn about command and mixed economies, how the two economic systems function, and the main difference between a command ... Read Answer >>
  5. How do you determine a company's percentage of credit sales?

    First, we should establish the fact that, depending on the industry, most companies' sales are sold with terms of payment ... Read Answer >>
  6. What is more important for a business, profitability or growth?

    Discover how both profitability and growth are important for a company, and learn how corporate profitability and growth ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center