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Sales describes what a business sells and the money it receives for it. Denise van Beek of Nordsee Marine is having a sales meeting with her sales team: 'Our sales figures and turnover (money received from sales) in the last year are good, with revenue (money from sales) of 14.5 million euros, on volume of 49 boats. This is above our target of 13 million euros. We estimate our sales growth next year at ten per cent, as the world economy looks good and there is demand for our products, so my sales forecast is nearly 16 million euros for next year. I'm relying on you!'
Here are some more uses of word 'sale':
a make a sale: sell something
b be on sale: be available to buy
c unit sales: the number of things sold
d Sales: a company department
e A sale: a period when a shop is charging less than usual for goods
f The sales: a period when a lot of shops are having a sale
Match the word combinations (1-7) to their definitions (a-f).
|a money received from sales (2 expressions)|
b sales aimed for in a particular period
c the number of things sold
d increase in sales
e statistics showing the amount sold
f sales predicted in a particular period
The money that a business spends are its costs:
• direct costs are directly related to providing the product (e.g. salaries).
• fixed costs do not change when production goes up or down (e.g. rent, heating, etc.).
• variable costs change when production goes up or down (e.g. materials).
• cost of goods sold (COGS): the variable costs in making particular goods (e.g. materials and salaries).
• indirect costs, overhead costs or overheads are not directly related to production (e.g, administration).
Some costs, especially indirect ones, are also called expenses.
Costing is the activity of calculating costs. Amounts calculated for particular things are costings.
Choose the correct expression to describe Nordsee Marine's costs.
1 the salary of an office receptionist (direct / indirect cost)
2 heating and lighting of the building where the boats are made (fixed / variable cost)
3 the materials used in the boats, and the boatbuilders' salaries (overhead cost / COGS)
4 running the office (overhead / direct cost)
5 wood used in building the boats (fixed / variable cost)
6 the salary of a boatbuilder (direct / indirect cost);
Margins and mark-ups
Here are the calculations for one of Nordsee's boats:
• selling price = 50,000 euros
• direct production costs = 35,000 euros
• selling price minus direct production costs = gross margin = 15,000 euros
• total costs = 40,000 euros
• selling price minus total costs = net margin, profit margin or mark-up = 10,000 euros
The net margin or profit margin is usually given as a percentage of the selling price, in this ease 20 per cent.
The mark-up is usually given as a percentage of the total costs, in this case 25 per cent [1, p.62-63].
Companies and markets
You can talk about the people or organizations who buy particular goods or services as the market for them, as in the 'car market', 'the market for financial services', etc. Buyers and sellers of particular goods or services in a place, or those that might buy them, form a market.
|If a company:
||it starts selling there for the first time.|
gets out of
||it stops selling there.|
||it is the most important company selling there.|
||it is the only company selling there.|
||drives another company out of
||it makes the other company leave the market, perhaps because it can no longer compete.|
Use the correct form of the words in brackets to complete the sentences.
1 European films do not export well: European movies barely................ (abandon/corner/ penetrate) the US market.
2 In the 1970s, Kodak .............(corner/enter/leave) the instant photography market, until then ...............(abandon/dominate/penetrate) by Polaroid.
3 The Hunt brothers tried to fix silver prices and to..............(corner/enter/leave) the silver market, ........(enter/drive out/monopolize) all competitors.
4 In the 1940s, MGM....................., (abandon/get out of/monopolize) the market on film musicals. But by the late 1950s, Warner Bros had also started buying film rights to musicals.
More word combinations with 'market'
'Market' is often used in these combinations, for example:
||In the late 1990s, Internet use was doubling every 100 days. Market growth was incredible.|
||Women are a particularly interesting target for the Volvo V70. They are an important market segment for Volvo.|
||The Softco software company divides the software market into large companies, small companies, home office users, and leisure users. This is its market segmentation.|
||Among UK supermarkets, Tesco sells more than any of the other chains. It has the highest market share.|
||Tesco is the market leader among UK supermarkets as it sells more than any of the other chains.|
Replace the underlined expressions with expressions from table above. You may need to add a verb in the correct form. I'm Kalil and I'm marketing manager for CrazyCola in a country called Newmarket. In this market, we (1) sell more than any other cola. In fact, we (2) have 55 per cent of the market. (3) Sales are increasing at seven to eight per cent per year. There are two main (4) groups of users: those who drink it in cafes, bars and restaurants, and those who buy it to drink at home. Of course, many users belong to both groups, but this is our (5) way of dividing our consumers [1, p. 48-49].
1.Bill Mascull. Business Vocabulary in Use. Intermediate // Cambridge University Press. - 172 p.