Demand for goods - is determined by the need of buyers for this product at a given price and the availability of its solvency. The value of demand (one of the most characteristic indicators) is the amount of products that consumers are willing to buy at a given price. This fact only means that potential buyers have a need for this product and the opportunity to purchase it, but this does not mean that buyers are ready to purchase it in such quantity. It follows that demand is the potential need of the buyer with his solvency, however, these prerequisites do not have to be met, a number of economic factors are responsible for their implementation.
The main factor in demand is the price of the product, which affects demand. In addition, there are a number of factors that are called non-price, they affect the demand of the goods, regardless of price.
- Incomes of consumers. An increase in income usually leads to an increase in demand for goods, but the general structure of consumption can significantly change. Demand for low-quality products is declining, as consumers are able to purchase better products.
- Fashion, consumer tastes. It is no secret that consumer tastes change under the influence of capricious fashion, and as a consequence, demand for this product can also change. The growth of consumer preferences inevitably leads to the fact that the demand for a certain type of product inevitably grows. A similar fact has a rather strong effect on fashionable goods (clothes, shoes) and the least on durable goods.
- The number of consumers. A decrease in the number of consumers leads to a decrease in demand, while an increase in the number of potential buyers significantly increases the demand for goods. All this depends on various factors, for example, a change in the population, which is associated with migration or a higher birth rate.
- Promotion on the markets of other countries increases the demand for goods, while an incorrect pricing policy and the introduction of taxes on the export of goods can significantly reduce it. The number of potential buyers affects the price of the goods only if the goods are in demand everywhere. This does not apply to national clothes, products or symbols that are in demand only in a certain region of the country, in another territory they simply will not be in demand.
- Substitute prices. Since almost any product on the market has its own substitute that performs the same functions, higher prices for the product itself lead to increased demand for substitute products. This factor plays a huge role, especially if substitutes have similar qualities as the product itself. The more unique the product, the more difficult it is to choose a substitute for it, in which case this factor ceases to play a significant role.
- Consumer expectations . The consumer can expect a significant reduction in the price of this product, because of which the demand for products can significantly decrease. Thus, in difficult economic situations, the demand for goods (salt, soap, matches) increases significantly, buyers disassemble essential products, because they are afraid of their disappearance from the shelves. With the expectation of higher prices for some goods, demand is greatly reduced. This factor is rarely taken into account when compiling the demand curve, since it is rather difficult to predict the expectations of potential buyers.
- Prices for complementary products. Many of the products on the market need complementary products. For cameras, such products are memory cards and film, their prices will affect demand in the opposite way. If the prices of components increase significantly, then the demand for cameras will decrease significantly.
Audit of settlements with customers involves an accurate analysis of consumer demand in the market, a qualified specialist must deal with these issues. It is the correct work with customers and the calculation of demand for goods that will help to establish the correct operation of a trading company in market conditions.