Legal Definitions - sales mix

Sales mix refers to the proportion of each product sold in relation to the total sales of a company. It is the combination of individual-product sales that make up the total sales of a business.

For example, a coffee shop sells coffee, tea, and pastries. If the coffee shop sells 60% coffee, 30% tea, and 10% pastries, then the sales mix is 60:30:10. This means that coffee is the most popular item sold, followed by tea and pastries.

Another example is a clothing store that sells shirts, pants, and shoes. If the store sells 40% shirts, 30% pants, and 30% shoes, then the sales mix is 40:30:30. This means that shirts are the most popular item sold, followed by pants and shoes.

The sales mix is important for businesses to understand because it can help them make decisions about which products to focus on and which ones to improve or discontinue. By analyzing the sales mix, businesses can adjust their marketing strategies and product offerings to better meet the needs and preferences of their customers.