Demand for goods. The prerequisites for growth and decline.

Demand for goods - is determined by the need of buyers in this product at a given price and the availability of its solvency. The magnitude of demand (one of the most characteristic indicators) is the quantity of products that consumers are willing to buy at a given price. This fact only means that potential buyers have a need for this product and the opportunity to purchase it, but this does not mean that buyers are ready to purchase it in such quantity. It follows that demand is the potential need of the buyer for its solvency, but these prerequisites do not necessarily have to be met, a number of economic factors are responsible for their implementation.

The main factor of demand is the price of the product, which affects the demand. In addition, there are a number of factors that are called non-price, they affect the demand for the product regardless of its price.

• Incomes of consumers. The increase in incomes usually leads to the fact that the demand for goods increases, but the overall structure of consumption can change significantly. Demand for low-quality goods is reduced, as consumers have the opportunity to purchase better products.
• Fashion, tastes of consumers. It's no secret that the tastes of consumers change under the influence of a capricious fashion, as a consequence, the demand for a given product can change. The growth of consumer preferences inevitably leads to the fact that the demand for a certain type of products inevitably grows. This fact has a strong enough influence on fashion goods (clothes, shoes) and the smallest - for durable goods.
• Number of consumers. Reducing the number of consumers leads to a decrease in demand, while an increase in the number of potential buyers significantly increases the demand for goods. All this depends on various factors, for example, a change in the population, which is associated with migration or a higher birth rate.
• Promotion to the markets of other countries increases the demand for goods, while the wrong price policy and the introduction of taxes on the export of goods can significantly reduce it. The number of potential buyers affects the price of the goods only if the product is in demand everywhere. This does not apply to national clothes, products or symbols that are in demand only in a certain region of the country, in another territory they simply will not have demand.
• Prices of substitutes. Since almost any product on the market has its own substitute, which performs the same functions, the increase in prices for the product itself leads to increased demand for substitute products. This factor plays a huge role, especially if the substitutes have similar qualities as the product itself. The more unique the product, the more difficult it is to choose a substitute, in which case this factor ceases to play a significant role.
• Consumer expectations . The consumer can expect a significant reduction in the price of this product, because of which the demand for products can be significantly reduced. Thus, in complex economic situations, the demand for goods (salt, soap, matches) is growing significantly, buyers are dismantling the products of prime necessity, because they are afraid of its disappearance from the shelves. With the expectation of an increase in the prices of some goods, demand is greatly reduced. This factor is rarely taken into account when compiling a demand curve, since it is difficult to predict the expectations of potential buyers.
• Prices for complementary goods. Many of the products on the market need complementary goods. For cameras such products are memory cards and film, the prices for them will affect demand in reverse. If the price of components is greatly increased, the demand for cameras will be significantly reduced.

Audit of settlements with buyers requires an accurate analysis of consumer demand in the market, a qualified specialist must certainly be involved in this matter. It is the proper work with customers and the calculation of the demand for goods that will help to establish the correct operation of a trading enterprise in market conditions.