Principles of Macroeconomics

Posted: October 17th, 2013

Principles of Macroeconomics

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Principles of Macroeconomics

In every business, several factors affect sales of a product. In a surf shop, these factors also apply. In addition, to increase sales of a product, several ways could be considered. Several factors that would determine the number of surfboards that I sell every month would include the price of the surfboards as the first factor. Many customers are sensitive to prices of goods, and when the price is too high, the number of surf boards sold every month will be lower considering not many may wish to forego some commodities for a surfboard (Doganis, 2002).

Another factor that determines the number of surfboards sold every year is the season. For people to surf there must be tides. When there are no tides, consumers will not buy surfboards. In addition, the season could determine the umber of consumers or surfers available in the market. During summer, there are more consumers, considering schools are on holidays. Consumer income is yet another factor that affects the number of surfboards sold in a month. When consumers’ income increases, they might buy more while they will buy less when their income is lower. Another factor is the cost of the output that has to be considered before setting the price (Arnold, 2008).

One way of increasing demand is through reducing the prices so that people will not have to forego other commodities (Arnold, 2008). This will increase the demand for the surfboards considering demand is inversely related to price. In addition, when there are more surfers, the sales might increase. Another way of increasing sales is offering customers discounts in order to attract them. In addition, there has to be a strategy to make the shop stand out from the rest, such as using internet to sell and offering delivery and maintenance services.

References

Arnold, R.A. (2008). Economics. New York, NY: Cengage Learning.

Doganis, R. (2002). Flying off course: the economics of international airlines. New York, NY: Routledge.