When To Use Volume, Value, and Equivalized Volume

In marketing, our goal is to get people to consume our product. It doesn’t matter if its food, clothes, or anything else. But what do we do after they consume, what can we do with that information. An important thing to calculate is Volume, Value, and Equivalized Volume.

Volume:

Volume is calculated by comparing how many units were sold between two separate timelines. For example, if a store that sells domino chips, sold 1,000 units last year and 2,000 last year than their volume increased. This can help companies see how their products are performing in their stores as well as in other distributors.

Value:

Value is calculated by comparing the amount of money made from a product. For example, if the same company that sells domino chips, sells them at 50$ but last year they sold the at 55$. They would have made 55,000$ last year and 100,000$ this year. This can help companies make decisions on if prices should increase, decrease, or stay the same depending on how different products perform.

Equivalized Volume:

Equivalized Volume is calculated when there is a product that has several versions of itself. For example, eggs are sold in various sizes like 6 eggs, 12, eggs or 18 eggs. Finding the Equivalized Volume allows a business to see how their eggs are selling and how each different size is preforming compared to the others.

All these aspects are important by themselves, but they are just as important when they are used together. Volume, Value, and Equivalized Volume can help businesses make the best possible decisions with real life numbers of their products sales, and they can influence changes in prices and changes in production for specific items.