How to grow your business with these 8 tips

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Your ergonomic office chairs account for 33% of your total sales mix and 45% of your revenue. Your most popular modular desks represent 67% of your sales mix and 55% of your gross margin.

Your ergonomic office chairs have a higher profit margin. However, they are also more complex and time-consuming to manufacture. Your modular desks have a shorter production time per unit and lower variable costs.

Calculating your sales mix shows that you don't always need to sell more of your most expensive products to be more profitable. Instead, it can direct your sales team 's attention to the right products.

Product mix information and sales metrics help business owners and leaders more accurately visualize and allocate future resources to products that positively impact their bottom line.


Sales Mix sales indicators


For larger companies with multiple product lines, the number of units that must be sold to make a profit may change constantly based on internal updates (e.g., product development) and external factors (e.g., market trends, changes in customer preferences).

Constant fluctuations in sales data like this make it even more crucial to evaluate your sales mix strategy regularly, for example quarterly, to ensure accuracy. If you have many products, you may need to make sales mix decisions monthly or even weekly.

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How to calculate the sales mix to achieve revenue goals
To calculate sales mix more accurately, you need to understand profit margins, contribution margins, and positive and negative variance.

Let's break down each of these calculations.

Note: Use the formulas below as a sales mix calculator to create benchmarks unique to your company, so your sales team can use them to improve.


Profit margin formula
Before calculating the sales mix, you need to know the profit of each product: the profit of each product divided by its selling price. After deducting variable costs, the final percentage represents your company's profit.

You can calculate the profit margin on your product inventories with this formula:



( Selling price - cost to the company) ÷ selling price × 100 = profit margin


We show you an example here:

Selling price : $100

Cost to the company: $20

Profit: $80 (100 - 20 = 80)

Profit margin : 80% (80 ÷ 100 × 100)

(100 − 20) ÷ 100 × 100 = 80% profit margin


Perform this calculation to analyze the cost classification gambling data singapore of each of your products and compare sales data.

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Let's say you have five product varieties, and Product C has the highest profit margin. In that case, you might consider selling 10 of Product C's and five each of Products A, B, D, and E.

It will always be better for you to sell the products with the highest margins because your sales mix will be more profitable. You can compare your percentages here to get a rough idea of ​​your product mix.