How To Balance Supply And Demand Of Your Product In The Market?

[Good-Guy]

Supply and demand are the two very important things when it comes to running the business. Whenever you run a business, you must always analyze the actual demand of the product. This is why many companies tend to conduct researches before they could actually launch the product in the market. There are various ways researches could be conducted. However, the problem comes when the company does not carry out the research in the proper way and ends up launching the product. There could be many reasons why a company might not carry quit a research and I believe that is a big mistake to never bother to analyze the demand of the product!

One of the reasons why a company may not actually conduct research is that the products they plan to launch is commonly in the market and they believe that such commonly found products would definitely sell off. for example, a company may plan to launch a soft drink and they might think that they do not need to carry out research because other soft drink brands are also in the market and they are being sold off. However, what should a company do in case the demand of the product fall significantly and when you have a good supply of product in the market?

 

[Jasz]

Balancing the supply and demand of a product in the market is important when you want to sustain your business.

In order to balance supply and demand, you need to be aware of:
-The type of marketing you will use
-The target market you want to focus on
-How much money you can invest in your business (cost)
-What to produce
-How much to produce

An entrepreneur faces a challenge: they want to create a product that will sell, but they don't know how much to produce. It's crucial that they understand how to balance the supply and demand of their products.

You should know the kind of product to produce and the kind of market or audience that fits the product.

I will also like to talk about the cost of production. The cost of production, which is a direct function of the price at which you sell your product. The other factor is the quality of the product, which is determined by the price at which you sell it.
The price at which you sell your product depends on your target audience and their purchasing power, as well as the demand for your product in comparison to other products in the market, such as substitutes and complements.

 

[Alexandoy]

I have noticed in business that the usual priority is the concern for the demand. There is even a saying that the customer is always right (although this is not accurately true). When the sales would go down the management would feel panic. How about when the supply suffers an interruption just like what happened here when the pandemic started? Food supply had a shortage because the suppliers had difficulty in passing by the road checkpoints. Delivery drivers are afraid that the cops will milk them of their hard earned money by inventing issues on their cargo.

The healthy setting in the supply aspect is to have at least 3 suppliers of the same product. You order from each one in an alternating fashion so that all of them will have a sale from you. When one supplier goes down then you still have 2. When there is a problem with shortage of the products like the farm harvest during the rainy season the prices will go up due to the shortage. In that scenario you are lucky if your supplier can still deliver your complete orders.