Sales Mix

DEFINITION of '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.

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.

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