What are non-price supply factors?

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Non-price supply factors are those factors that have a significant influence on the formation of the offer, as well as the price of the product for its volume.

These are:

1) The level at which development is locatedproduction of this enterprise. This also means the quality of the use of factors of production. These include highly qualified specialists working in the company, properly operating automated machinery, as well as raw materials of good quality. If all of the above is kept under control, then a significant reduction in production costs can be achieved. What, in fact, will not only improve the productivity of the enterprise, but also increase profits.

2) Non-price supply factors are, in addition toin total, also taxes with subsidies provided by the state. They are also quite a significant condition affecting the proposal. These factors can both increase the costs of the enterprise, and reduce them.

3) Another factor is availability on the marketgoods that are substitutes for the product produced by the firm. As, for example, some types of energy can be replaced by artificial ones, which will help to cut costs again.

4) The prices of resources and factors of production also represent non-price supply factors.

non-price supply factors

The aggregate supply and its factors are alsoquite important information that every entrepreneur or enterprise manager needs to know. Firstly, it should be said that by it is meant the sum of all existing individual proposals. In other words, it is a quantity, a quantity of all services and goods on the market.

Factors that affect the aggregate supply:

1) Rising or falling prices for raw materials.

2) Growth or decline of labor productivity of the enterprise.

3) Change of conditions on which the business of a firm is based.

In addition to all of the above, I would like to noteand the factors that shape the quality of goods, because their role is just as important as the rest of them. The most important of them is the assortment of goods. It represents a certain amount of any products that differ from others in specific features and attributes.

The assortment, as a rule, is divided into fourlarge groups. The first - the breadth of coverage of goods, the second - the location, the third - the degree of satisfaction of needs, the fourth is allocated based on the nature of the needs of consumers. In addition, there are two types: commercial and industrial. The latter is a set of products that the manufacturer produces, taking into account the production capabilities. It must necessarily be coordinated with the Ministry of Health of the Russian Federation. But the trade assortment is the goods, the formation of which takes place taking into account the specialization of the enterprise, as well as the available technical base and consumer demand.

In general, non-price supply factors that affect the quality are, of course, profitability and demand.

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