Business demand and supply

[Carpon]

A business' most basic activities are supplying and demanding. They demand from producers and wholesalers while they supply to users and customers. There are some things about business demand and supply that business persons should know in order to help them keep their business alive.

1. The rate of demand should determine your supply: you must be careful to note the level at which every good and commodity is being purchased. The higher the rate of purchase, the more the amount you'll supply. The opposite will happen for less patronized goods. Supply them in lesser quantity depending on the level of its need by customers.

2. Your supply sometimes affects demand: there are conditions when the public that is your customers are not in need or demanding for a particular product but because you have supplied it, they go ahead and purchase it. Sometimes as a substitute for a similar product other times not as a substitute

 

[Shaf]

You can use the rule of demand and supply to help boost your business. A new business should analyse the demand to see if it is enough for them to make enough revenue and generate profits.
You can also check to see if there is extra demand that is not being met by your competition, because if they are already providing what the market needs, Yiu won't have sales except you are offering cheaper products or you are solving a problem they are not solving.

Some businesses also have seasonal supply and demand. If you are looking for something that will give you consistent income all year round, you should find a way around this problem.

It is not possible to easily change the demand and supply pattern, except you want to create artificial scarcity which is not part of good business ethics, but some people especially big producers are known to do it.

 

[Suba]

Supply and demand is not a business but a market law, if you study marketing, you will certainly know market participants and demand and supply in depth.