Revenue is Quoting investopedia.com , revenue is money generated from normal business activities, calculated by multiplying the average selling price by the number of units sold. Revenue is known as the gross income figure (or total income) to calculate net income. This definition is also put forward by several experts in their books. Among them, the book Microeconomics by Bachrudin Sjaroni et al. (2019), defines revenue as income or the amount of money obtained by a company from the activity of selling products or services to consumers .
Meanwhile, the book Easy
Ways to Understand Investments singapore telegram data edited by Jack Guinan (2009), defines revenue as money received by a company during a certain period. In simple terms, you can interpret revenue as income from a business. Factors Affecting Revenue Here are some key factors that play an important role in determining how much revenue can be achieved: Selling Price ( Product Pricing ) The selling price of a product or service is the factor that most directly affects revenue . The higher the selling price, the greater the potential revenue that can be obtained, provided that the sales volume remains stable.
However, setting a selling
Price cannot be arbitrary. Companies need to pay attention to consumer purchasing power, so that the price set does not actually reduce buyer interest. Therefore, companies must be wise in their pricing strategy in order to attract consumers and still obtain maximum profit. Sales Volume Sales volume is the second factor that has a major influence on revenue . The more products or services sold, the higher the revenue that can be generated. If the selling price of the product remains the same, an increase in sales volume will directly increase the company’s total revenue.
Therefore, companies must
Ensure that the products make your stories more engaging or services they offer are in demand by the market and are available in sufficient quantities to meet demand. Marketing Strategy ( Product Marketing ) Effective marketing strategies play an important role in increasing sales. Good marketing makes products more known and in demand by potential consumers. Without the right marketing strategy, consumers may not know the products offered. Through promotions, branding , and marketing campaigns, companies can expand their market reach and attract more customers. As a result, sales will increase and directly impact revenue .
Price Management ( Yield Management )
Yield management is a strategy saudi data to manage selling prices to maximize revenue . One of its applications is by providing discounts or cashback when consumers buy a certain amount. Flexible price management according to market demand is essential to maintaining stable revenue growth. Economic Conditions General economic conditions also affect a company’s ability to generate revenue . When economic conditions worsen, people’s purchasing power decreases, which causes product or service sales to fall.