sales mix

Sales mix refers to the proportion or percentage of different products or services that a company sells relative to its total sales. It reflects how much of each product contributes to overall revenue. Understanding sales mix helps businesses assess which products are more profitable and make informed decisions about pricing, marketing, and production. Changes in sales mix can impact overall profit margins even if total sales stay the same, since different products often have different costs and profit levels. In essence, sales mix provides insight into the composition of a company's sales and its impact on profitability.