Profitability- a relative indicator that characterizes the degree of economic efficiency of the use of any resource (material, monetary, labor). It is calculated according to special formulas, usually has a percentage expression. Profitability can be called the most important indicator for evaluating the activities of a commercial enterprise.

This concept is used very widely, is divided into several types, but, in principle, it represents the ratio of the profit received from the activity to any asset or resource.

Therefore, the profitability ratio is calculated by dividing the amount of profit by the value of interest. Both values ​​are accepted in the same units. Since it is rather difficult to express profit in non-cash form, the denominator is also given in monetary terms. Most often, profitability is calculated as a percentage.

It should be noted that the approach to profitability ratios is not as strict as to purely mathematical formulas, there is a replacement of words that are similar in sound and content of concepts. So the profitability of production can be considered both as the profitability of the process, and as the profitability of the production complex. Therefore, it is worth considering not only the name of the term, but the components of a particular formula, their practical meaning.

The most common are the following profitability indicators:

• Product profitability(realized) - the profit received from the sale of a certain amount of products is divided by the cost of this product.

It is calculated in much the same way profitability of services sold. Only in the denominator is taken the cost of providing a certain number of services in the numerator.

• Profitability of fixed assets- the ratio of net profit from activities for the period to the cost of fixed assets.
• Profitability of the enterprise- equal to the ratio of profit to the total cost of fixed and current assets of the enterprise
• Staff profitability- represents the ratio of net profit for a certain period to average population personnel for the specified period.

The following indicators are also used:

• Total return on assets- the ratio of net profit for the period to the average total value of the company's assets.
• Return on equity(capital) - the same as the above coefficient, but in relation to the organization's own capital.
• Return on assets used- profit before taxes and mandatory interest in relation to the amount of equity and long-term loans.

The list of profitability ratios used is not limited to those listed above. With the development of economic and financial relations, the development of investment, new, previously unused coefficients appear. General rule their unifying factor could be approximately expressed as the ratio of the value of the benefit (profit) received to the resource used to obtain it.

Let us dwell on the most commonly used in our conditions and, therefore, indicators that are informative for us:

Profitability of sales(ROS, from the English Return on Sales,) is a very important indicator that reflects the share of profit in the total amount (turnover). Most often, profit before taxes is used in the calculation - operating profit. This seems to be justified, since the amount of taxes is not directly related to the efficiency of activities, and profitability, first of all, is an indicator of the economic effect. But it can also be applied net profit margin. This allows you to better represent the real benefits of sales.

Accordingly, the return on sales can be calculated using the following formulas:

Total return on sales = Gross profit / Revenue;

Net return on sales = Net profit / Revenue.

The concept of revenue can be replaced by the concept of turnover, which does not affect the essence of the ratio.

These ratios are used primarily to assess the current state of affairs. Profitability of sales allows you to determine the operational efficiency of the organization, i.e. its ability to organize and control current activities. Which, in turn, shows the direction of the company's movement, fall or rise.

The profitability of sold products is defined as the ratio of profit from the sale of products to the sum of the costs of production and sale of these products. The composition of costs, in this case, includes material costs for production (the cost of raw materials, components, energy carriers, etc.), wages, overheads, and trading costs.

RRP = (CPU - PSP) / PSP x 100;
Where:

• Ррп - profitability of sold products;
• CPU - selling price of products;
• PSP - the total cost of this product.

Sometimes this ratio is called the profitability of production (as a process).

The profitability of production (as a production complex) is calculated as the ratio of the amount of profit (total) to the sum of the costs of fixed and normalized working capital.

ORP \u003d OP / (OS + OBS);

Where ORP - the total profitability of production;

OS - fixed assets of the enterprise (buildings, structures, equipment);

OBS - normalized working capital (inventory, semi-finished products for the production cycle, finished products in warehouses).

Based on the foregoing, we can conclude that the concept of profitability is very broad. Methods and formulas for its calculation are a flexible working tool for determining the profitability, benefits from certain investments in material, human and other resources, assets.

One of the economic indicators of the effectiveness of the organization of the enterprise is the profitability of sales (hereinafter referred to as RP).

It allows you to determine how profitable for the company is the entire process from manufacturing to the sale of manufactured products. This value depends on the indication of gross profit (hereinafter referred to as VP), revenue and other factors.

The concept of profitability and its main types

The RP indicator is very widely used in all sectors of the economy in order to find out how efficiently current costs are used in an enterprise.

This indicator is measured as a percentage, showing the ratio of profit to expenses. This coefficient shows what share it takes in each earned ruble after the sale of manufactured products.

Exists several types of RP depending on the parameters used in its definition:

1. by value before interest and taxes in each ruble of proceeds;
2. according to the indications of the VP (Operating Margin, Gross Margin, Sales margin,);
3. by net profit, part of which falls on 1 ruble of revenue (Profit Margin, Net Profit Margin).

Receiving net profit is possible only if the company carries out expedient activities aimed at the rational use of investments. The coefficient also depends on the turnover of capital and the volume of output.

What characterizes this value?

The RP parameter is an indicator of economic efficiency that characterizes the company's profitability from production activities.

By its meaning produce analysis how rationally the organization uses its available production resources:

If the result of the activities of non-profit structures is analyzed, then this parameter will evaluate the overall effectiveness of their work. For commercial divisions, exact quantitative characteristics are important in the calculations. RP is similar to KPI, only the parameters in this analysis are the result obtained as a result of the activity, which is presented as a ratio of costs incurred to the amount of profit received. The more benefits received, the more profitable production.

At enterprises, RP is an indicator of the organization's pricing policy and competent cost control. Diversity in the competitive strategies of an enterprise stimulates a large difference in the parameters of RP in various companies. It is widely used to analyze the performance of organizations' operating efficiency.

For information on what this indicator is, the rules and examples of its calculation, see the following lesson:

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The order and rules of calculation

The RP indicator is calculated in order to to analyze such factors:

• company development dynamics;
• efficiency of production processes;
• methods of product realization.

The value of RP is usually calculated as the ratio of net profit, from which taxes have already been withheld, to the amount of proceeds received from sales, for the same period of time.

By gross profit

The RP coefficient calculated using the VP parameter is called on English language: GrossProfitMargin.

It is obtained in the course of solving a simple formula - the ratio of VP to revenue:

RPval \u003d VP / V,
where B is revenue.

This parameter shows the share of VP in kopecks contained in 1 ruble of proceeds.

By operating profit

Numeric value found as a result of the ratio operating profit to the amount received after the sale of products is the RP for operating profit or it is also called Return on Sales (ROS).

The formula for determining this parameter is as follows:

where Ebit is operating profit. This value is obtained as the sum of two lines: 2300 "Profit (loss) before tax" and 2330 "Interest payable";
Tr - proceeds after sales.

In English, operating profit is Earnings before Interests and Taxes.

In this parameter, as well as in the previous case, one can immediately see a penny share of operating profit included in 1 ruble.

This parameter is an intermediate performance ratio between sales profit and net profit.

By net profit

The designation Net Profit Margin (Npm) belongs to the term net profit margin. It is determined as a result of the ratio of net profit to total revenue. In this case, they talk about RP, which shows what share of net profit falls on 1 ruble of revenue.

The formula looks like this:

Npm=R.h./Tr,

in which the net profit (Tr) is determined by multiplying the price by the number of items sold from the output:

Tr=W*L,
W is the price, L is the number of units sold.

Net profit \u003d Tr - Full cost - Expenses + Income - Taxes,

where are the indicators “Expenses” and “Incomes” arising from the non-core activities of the enterprise. These include exchange rate differences, transactions with securities, into the production of other enterprises through, etc.

Balance Formula

Another option for calculating the RP indicator is a formula that uses balance data:

RP = profit from sales / amount of revenue

RP = line 050 / line 010 f. #2,

where the profit from the sale is the value from line 050 in the form No. 1 of the enterprise; the amount of revenue is reflected in line 010 in form No. 2.

Each of the above calculation options in one case or another is used to analyze the activities of an enterprise in the field of sales.

Return on sales ratio

The share of net profit in total sales is determined using return on sales ratio(hereinafter KRP).

It is the most important among other indicators of the company's profitability. The indicator cannot have a negative value and correspond to the current inflation rate. In order for it to show a smaller error in countries with highly developed economies, the coefficient depending on the industry is correlated with its parameter.

The formula for calculating the coefficient is as follows:

KPI = net profit / sales revenue.

This parameter can be calculated both for individual items (for example, for a specific product) or for general products in general. Calculations need to be done quite often, because. this is important for the organization of rational production at the enterprise, which makes it possible to stably maintain and increase profits.

Calculation example

To calculate the RP parameter necessary for analysis and find out how much net profit the company received from the sale of goods, you need to apply the formula. To make it easier to understand how to calculate RP, consider an example.

The company received total sales revenue for the year 2014 amounted to 15.85 million rubles, and in 2015 it increased to 17.51 ​​mln. rub.

Net profit amounted to:

• in 2014 - 3.8 million rubles;
• in 2015 - 4.9 million rubles.

Need to determine how the RP has changed?

To answer, you must first find out the CRP for 2014 and 2015. To do this, we substitute the initial data into the formula for calculating the CRP given above:

KRP (2014) \u003d 3.8 / 15.85 \u003d 0.2397 or for net profit RP (2014) \u003d 23.97%.

CRP (2015) = 4.9/17.51 ​​= 0.2798 respectively and RP (2015) = 27.98%.

Now we need to clarify how the value has changed as follows:

RP (2015) - RP (2014) = 27.98-23.97 = 4.01%.

It follows from the calculations that in 2015 the profitability of sales increased significantly by 4.01%.

Analysis of the results

Analyzing the value of return on sales, the managing administration tries to find out how well the use of costs is organized in order to make a profit.

In many enterprises this analysis needed for the following:

• stable income and increase in profits;
• control over the development of the company;
• making comparisons with competing firms;
• detection of profitable and unprofitable commodity products, etc.

The management of the organization must carefully consider measures to increase profits and reduce losses in production activities. What to do if you need to increase the RP indicator? What to do in case of decrease in profitability? Regular monitoring and analysis of the level of RP allows you to identify a lot of extremely important information. In the course of calculations, it becomes clear how production is developing, what needs to be adjusted, and which factors, on the contrary, do not require changes.

For each entrepreneurial activity There is no more important goal than constantly increasing your income. To do this, it is necessary to regularly calculate all options for determining profitability and record the results.

The main source of movable capital is the proceeds received from the sale of products. Therefore, one of the main activities of the subject should be to increase the RP indicator by observing the savings regime, reducing costs, rational use of enterprise resources.

Due to the fact that the volume of costs for raw materials requires considerable investments, and an increase in profitability implies a reduction in cost, it is necessary to rationally calculate the costs of purchasing materials. This will raise the CRP and increase profits.

Marketing research of the market will allow to establish an improved production of products similar to similar products from competitors and increase the demand from buyers for their products.

Main activities for use labor resources affecting to increase profitability, such:

• optimal use of workers employed in production;
• improving the skills and qualifications of the working staff;
• optimization of costs for departments that are not involved in the direct production of products;
• the use of automated mechanisms in production;
• promoting the interest of the state in increasing labor productivity.

The main factors that may influence to reduce the profitability of sales, such:

• Expenses are growing faster than the proceeds from the sale of products;
• Falling revenue outpaces rising costs;
• There is a decrease in revenue against the background of an increase in costs.

The first option is usually associated with an increase in corporate costs with a forced price reduction due to the onset of unfavorable market conditions. The second point is characterized by a drop in sales of products.

And in the latter case, there is a series factors influencing the decrease in RP. These include:

• the need to reduce prices for manufactured products;
• reducing the range due to the inability to suspend the increase in corporate costs.

It is necessary to analyze these factors and reconsider economic policy enterprises in order to prevent and gradually increase the RP indicator.

Normative values ​​of this indicator for Russia

RP depends on many factors. The highest rates are in the trade and extractive industries, and the lowest in heavy engineering.

For this parameter affect:

• Industry;
• Region;
• terrain;
• Kind of activity;
• Seasonality, etc.

According to statistics, in 2014 there were such profitability indicators:

• The maximum number belongs to the mining sector (24-33%), and chemical production (16,7%).
• Large business areas show a decrease in profitability due to falling prices and consumption in world markets.
• Enterprises of the small and medium segment of the economy showed a slight increase of about 0.9% of GDP.
  Due to the turbulent geopolitical situation, there was a decrease in the profitability of some industries, but nevertheless, growth is observed and economists predict that retail could grow by 2.1% per year.

The rules and procedure for calculating profitability are discussed in the following video:

It describes the final (net) performance of the organization.

The indicator reflects the share of net profit (loss) in the company's revenue.

Calculation formula (according to reporting)

Line 2400 / line 2110 of the report financial results * 100%

standard

Not standardized

Conclusions on what a change in indicator means

If the rate is above normal

Not standardized

If the rate is below normal

Not standardized

If the index increases

positive factor

If the index decreases

Negative factor

Notes

The indicator in the article is considered from the point of view of not accounting, but financial management. Therefore, sometimes it can be defined differently. It depends on the author's approach.

In most cases, universities accept any version of the definition, since deviations in different approaches and formulas are usually within a few percent at most.

The indicator is considered in the main free service and some other services

If you see any inaccuracy, typo - also, please indicate it in the comment. I try to write as simply as possible, but if something is still not clear, you can write questions and clarifications in the comments to any article on the site.

Sincerely, Alexander Krylov,

The financial analysis:

• Definition The profitability of the main activity is the ratio of profit (loss) from sales to revenue. The indicator characterizes the share of profit (loss) received by the organization in its core activities. That…
• Definition Return on sales is an indicator that characterizes the level of gross profit (loss) in revenue. It describes the basic performance of an organization. It can be considered the mark-up level of the enterprise ...
• Definition Retained earnings (uncovered loss) 1370 is the amount of retained earnings or uncovered loss of an organization. It is equal to the sum of net profit (net loss) of the reporting period, i.e. ...
• Definition Other 2460 - these are other indicators that affect the amount of the organization's net profit: taxes paid when applying special tax regimes, penalties and fines, surcharges for ...
• Definition A deferred tax asset 1180 is an asset that will reduce income tax in future periods, thereby increasing profit after tax. Having such an asset...
• Definition Net profit (loss) 2400 is the net profit (loss) of the organization, i.e. retained earnings (uncovered loss) of the reporting period Net profit (loss) is the result of the organization's activities ...
• Definition Current income tax 2410 is the amount of income tax generated according to the data tax accounting for the reporting (tax) period. In site services, the meaning of this ...
• Definition Borrowed funds 1410 are long-term (more than 12 months) loans and borrowings received by an organization. An organization can transfer reporting to short-term, when the term ...
• Definition Other liabilities 1450 - these are other liabilities of the organization, the maturity of which exceeds 12 months, which are not included in other groups of the 4th section of the balance sheet. Their presence...
• Definition of Earnings before taxes (EBT) - profit (loss) before taxes. For analysis, it can be considered an analogue of the line profit (loss) before tax (2300) ...

What does the concept of profitability mean? This is a relative value that reflects the performance indicator of the enterprise.

Calculation of the formula for profitability of sales.

Return on sales is a kind of indicator of pricing policy. Alternatively, considered as an indicator of cost control.

For example, in competing companies, the net return on sales and the formula display performance depending on the strategy and product line assortment.

Often this data is used to evaluate operational efficiency. One caveat: given the same revenue, costs and relatively equal profit (before tax), the profitability of sales of similar companies can differ dramatically.

This may be due to the influence of the volume of interest payments on the size of the NP (net profit).

What is the meaning of the return on sales ratio? This indicator is characterizing in determining the efficiency of production activities.

That is, the level of profitability of sales and the formula that clearly displays the calculations actually shows the size of the NP (net profit) from the currency unit of sales.

That is, how much remains with the company after the cost of production, interest payments on existing loans and the corresponding tax deductions are covered. In other words, this indicator reflects the share of cost in sales.

KRP is determined primarily by the performance indicators of a certain reporting period. Important to know: CPI does not reflect the intended effect of long-term investments.

For example, an enterprise is switching to new technologies, or, alternatively, plans to release new products, which may require additional investments. In such cases, the CRP may decrease.

However, subject to the right strategy, this cannot be considered an indicator of the company's low efficiency, since the costs pay off rather quickly.

How to find the ROI formula?

RP (profitability of sales) is an indicator of pricing policy that reflects the ability of the company's management to keep potential costs under control.

For example, Gross Profit Margin - RP for marginal income.

The indicator is expressed as a percentage of marginal income to the proceeds received from the sale of goods/services.

For example, Gross Profit Margi: how to calculate return on sales, formula:

GPM = (sales revenue excluding variable costs / sales revenue) x 100%

The formula for profitability of sales by balance sheet.

The profitability ratio, which reflects the share of profits in each earned currency unit, is actually profitability. The calculation is not complicated: the ratio of profit after tax (net profit) to sales (in monetary terms) for a certain period.

That is, the profitability of sales is determined by the formula:

PE / V;

where: NP - net profit, B - revenue.

The formula for the return on sales ratio.

KRP shows the share of NP (net profit) in the total sales of the company. This is the main indicator that is used most often to display the profitability of the enterprise.

Accordingly, the indicator should not be negative and correspond to the current inflation rate. Alternatively, for firms in advanced economies, CRP is correlated by industry.

The calculation is made as follows: return on sales - formula, example:

ROS = NI/NS

Decryption:

ROS: Return on Sales - the actual profitability of sales;
NI: Net Income - net income in a certain currency;
NS: Net Sales - revenue and net sales in general.

Important! KRP is the most important indicator that allows you to determine the profitability of the enterprise from each currency unit due to the sale of goods / services.

The profitability ratio of sales can be calculated both for individual items of goods / services, and in general. This is especially important for the analysis of the economic activity of the enterprise.

Any activity related to sales is carried out for the purpose of making a profit. It is the actual sale that provides income to the business, because. at this stage, the company receives money from the client. Profit, in turn, is the main goal of business as such. In order to achieve it, it is not enough just to make sales. They need to be cost effective. In other words, they are effective. Estimating the profitability of sales is an integrated approach, which we will talk about.

Definition of the concept of "profitability"

Profitability of sales, or profitability ratio of sales - an indicator of the financial performance of the company, showing what part of its revenue is profit.

If we express this concept as a percentage, then profitability is the ratio of net income to the amount of revenue received from the sale of manufactured products, multiplied by 100%.

Thanks to the profitability indicator, one gets the impression of the profitability of the company's sales process or how much the products sold pay off the costs of its release. So, the costs include: the use of energy resources, the purchase of necessary components, the hours of work of personnel.

When calculating the profitability ratio, the amount of capital of the organization (the amount of working capital) is not taken into account. Thanks to the data obtained, you can calculate how successfully competing enterprises in your field of activity work.

What does profitability ratio mean?

Thanks to this indicator, you can find out how profitable the company's activity is. You can also calculate what share falls on the cost price after the product has been sold. Having an understanding of the profitability of sales of its products, the company can control all costs and expenses, as well as adjust its pricing policy.

Important! Various manufacturing firms produce a wide variety of products, and for its implementation they also use different strategic and tactical ways, advertising moves, therefore, the value of their profitability ratios will be different. Even if two firms producing goods received the same revenue and profit, and also spent the same amount on production, then after deducting tax costs, their profitability ratio will be different.

Also, the planned effect of long-term investments will not be a direct reflection of profitability. If the company decides to improve the technological cycle of production or purchase new equipment, then for some time the resulting coefficient may decrease significantly. However, if the sequence of introduction of new technologies and equipment at the enterprise has been determined correctly, then over time the company will demonstrate increasing profitability.

How is return on sales calculated?

To calculate the return on sales, use the following formula:

ROS = NI / NS * 100%

• ROS- Return on Sales - profitability ratio, expressed as a percentage.
• N.I.- Net Income - data on net profit, expressed in monetary terms.
• NS- Net Sales - the amount of profit received by the company after the sale of products, expressed in monetary terms.

If the initial data are correct, then the resulting formula will allow you to calculate the real profitability of sales and find out how profitable your company is.

Calculation of the company's profitability by example

When starting calculations, it must be remembered that with the help of a general formula, you can find out how efficient or inefficient the activity of an enterprise is, but it will not allow you to find out in which part of the production chain there are problems.

For example, a company analyzed its activities and received the following data:

In 2011, the company made a profit of 3 million rubles, in 2012 the profit was already 4 million rubles. The amount of net profit in 2011 amounted to 500 thousand rubles, and in 2012 - 600 thousand rubles.

How to find out how much profitability has changed in two years?

Calculations show that in 2011 the profitability ratio was:

ROS 2011 = 500000/3000000 * 100% = 16.67%

ROS 2012 = 600000/4000000 * 100% = 15%

Find out how much the profitability has changed over the estimated time:

ROS = ROS2012 - ROS2011 = 15-16.67 = - 1.67%

Calculations showed that in 2012 the company's profitability decreased by 1.67%. The reasons for the drop in profitability are not yet clear, but they can be found out if you conduct a more detailed analysis and calculate the following indicators:

1. The change in tax costs needed to calculate NI.
2. Calculation of the profitability of manufactured goods. Produced according to the following formula: Profitability = (revenue - cost - costs) / revenue 100%.
3. Profitability of sales personnel. For this, the formula is used: Profitability = (revenue - salary - taxes) / revenue 100%.
4. Advertising profitability of manufactured products. It is calculated using the following formula: Profitability = (revenue - advertising costs - taxes) / revenue * 100%.

When calculating these indicators, it is necessary to take into account the following features of the production process:

1. If the company is engaged in the provision of services, then the cost includes: organization of jobs for sales specialists. For example, you need to buy computers. Rent a space telephone line, pay for advertising, purchase software for work and pay for a virtual PBX.
2. Calculating the profitability of sales professionals, you can use a fairly simple formula - gross profit divided by total revenue. But it is better to use it when working with specific indicators: the profitability of each specialist, a specific type of product, a section on the site.

What factors affect the profitability of sales?

You can increase the profitability of sales by reducing the cost and level of costs. However, this must be done thoughtfully and carefully, as such savings can reduce product quality or negatively affect the work of personnel. To avoid this, you should take a comprehensive approach to the issue of increasing profitability and study the following aspects:

• Staff efficiency.
• Sales channels.
• Competing companies.
• Sales process and costs.
• Efficiency of work with CRM.

After these components of the business have been studied, you can proceed to the formation of a sales strategy and tactics. It is also important to understand how profitable each group of goods is separately.

For example, a company offers clients three types of real estate for rent:

• Residential.
• Warehouse.
• Office.

By applying the calculations, for residential real estate, we received the highest rates of return on sales, so you can increase the costs associated with this group of services, as they will pay off.

Increasing profitability in many cases also depends on the human factor, for example, on the level of employees who are involved in manufacturing process Therefore, the business owner needs to pay attention to:

• Effective application of knowledge of specialists.
• Raising the qualifications of employees.
• Optimization of expenses for specialists who are not directly involved in the production process.
• Implementation automated systems and innovative technologies.

Profitability may also depend on the industry. Thus, the sphere of heavy engineering demonstrates a slow growth in the profitability of sales, and the highest rates can be observed in the trade sector or in the mining sector. For example, in 2014, the highest profitability indicators were noted in chemical industry- 16.7% and in the field of subsoil development - 24-33%.

Profitability is influenced by the following features of the enterprise:

• Seasonality of sales.
• What is the activity of the company.
• The area in which the company sells its products (regional attribute).

Ways to increase profitability

The profitability indicator does not always meet the expectations of business owners. In this case, it is important to find the causes of low profitability and ways to eliminate these causes. There are many ways out of the situation, we tried to highlight the main ways to increase the profitability of sales.

We reduce costs. Reducing the cost of goods is the best incentive for profit growth. The main thing is not to do this at the expense of quality. It is better to optimize logistics, work on the professionalism of managers, and agree on more favorable terms with the supplier.

We raise prices. A difficult step that few are willing to take. Given that indecision in this matter is just the main mistake. Dumping is the way to kill a business. Prices can and should be raised. It just needs to be done wisely. First, no sudden jumps. Second, be sure to warn customers ahead of time that prices will rise soon. This is an unspoken rule of good taste and a way to maintain confidence in yourself and your company.

We focus on the client. For any product, the main thing is not the price, but the value that it represents for the buyer. In the selling description, you need to describe in detail what is the main advantage of the product, what problems it helps to solve, etc. This should be information that will make the client buy the product right here and now. If a person understands that you really give him the best offer, then the price increase will fade into the background for him. It is natural that, for our part, you need to ensure good quality goods and services. Not a single sales text will help you if you don’t organize delivery properly or if you “push” people with outright nonsense. And vice versa - with a loyal attitude, a person will become your regular customer.

And to achieve a loyal relationship is simple: go forward where it is appropriate. If the buyer needs extra urgent delivery, implement it. The person is dissatisfied with the purchase (for objective reasons) - offer a refund, replacement or a small compensation at your discretion.

People appreciate not only a professional, but also a human approach. Which ultimately has a positive effect on the profitability of sales.

We sell related products. Standard situation: store manager household appliances after buying a laptop, he offers to take a monitor cleaning spray. A trifle, and one that you were not originally going to buy. However, many agree. And all because this little thing will really be useful for them. Analyze which items from your assortment can go with the main product and offer them to the buyer. In online stores, for such a reception, the block “Buy with this product” is usually used.

P.S. This method suitable for b2b sales. Here, your main task will be to convey to the partner that an additional product will give more sales to his company in the first place. As an argument, you can use an example-statistics for other partners.