Non-price factors of the offer are those factors that have a significant impact on the formation of the offer, as well as the price of a product on its volume.
These are:
1) The level at which the development of production of the enterprise is located. This also means the quality of the application of production factors. These include highly qualified specialists working at the company, well-functioning automated equipment, as well as good quality raw materials. If you keep all of the above under control, then you can achieve a significant reduction in production costs. Which, in fact, will not only improve the productivity of the enterprise, but also increase profits.
2) Non-price factors of supply are, in addition to everything else, also taxes with subsidies provided by the state. They are also quite a significant condition affecting the proposal. These factors can both increase the costs of the enterprise, and reduce them.
3) Another factor is the presence on the market of goods that are substitutes for the product manufactured by the company. As, for example, some types of energy can be replaced by artificial ones, which will help to reduce costs again.
4) The prices of resources and factors of production also represent non-price factors of supply.
The aggregate proposal and its factors are also quite important information that every entrepreneur or company manager needs to know. Firstly, it is worth saying that it is understood as the sum of all existing individual offers. In other words, this is the quantity, the quantity of all services and goods on the market.
Factors that influence the aggregate supply:
1) Increase or decrease in raw material prices.
2) The growth or decline in labor productivity of workers of the enterprise.
3) Change in the conditions on which the business of the company is based.
In addition to all of the above, I would like to note the factors that shape the quality of goods, since their role, just like the rest, is important. The most important of them is the range of goods. It represents a certain amount of any products that differ from others in specific features and signs.
The assortment is usually divided into four large groups. The first is the breadth of coverage of the goods, the second is location, the third is the degree of satisfaction of needs, the fourth is allocated based on the nature of the needs of consumers. In addition, two types can be distinguished: commercial and industrial. The latter is a set of products that the manufacturer produces, taking into account production capabilities. It must be agreed with the Ministry of Health of the Russian Federation. But the trade assortment is goods, the formation of which takes into account the specialization of the enterprise, as well as the existing technical base and consumer demand.
In general, non-price factors of supply affecting quality are, of course, profitability and demand.
