What are non-price supply factors?

Non-price supply factors are those factors that have a significant influence on the formation of a proposal, as well as the price of a product for its volume.

These are:

1) The level at which the development of production of a given enterprise is located. This also means the quality of the use of factors of production. These include highly qualified specialists working in the company, properly operating automated machinery, as well as raw materials of good quality. If all of the above is kept under control, then a significant reduction in production costs can be achieved. What, in fact, will not only improve the productivity of the enterprise, but also increase profits.

2) Non-price supply factors are, in addition, also taxes with subsidies provided by the state. They are also quite a significant condition affecting the proposal. These factors can both increase the costs of the enterprise, and reduce them.

3) Another factor is the presence on the market of goods that are substitutes for the product produced by the firm. As, for example, some types of energy can be replaced by artificial ones, which will help to cut costs again.

4) The prices of resources and factors of production also represent non-price supply factors.

The aggregate proposal and its factors are also quite important information that every entrepreneur or enterprise manager needs to know. Firstly, it should be said that under it is understood the sum of all existing individual proposals. In other words, this is the magnitude, the quantity of all services and goods on the market.

Factors that affect the aggregate supply:

1) Rising or falling prices for raw materials.

2) Growth or decline in labor productivity of workers.

3) Change of conditions on which the business of a firm is based.

In addition to all of the above, I would like to note the factors that shape the quality of goods, because their role is just as important as the rest. The most important of them is the assortment of goods. It is a certain amount of any products that differ from others in specific features and attributes.

The assortment, as a rule, is divided into four large groups. The first - the breadth of coverage of goods, the second - the location, the third - the degree of satisfaction of needs, the fourth is allocated based on the nature of the needs of consumers. In addition, it is possible to distinguish two of its types: commercial and industrial. The latter is a set of products that the manufacturer produces, taking into account the production capabilities. It must necessarily be coordinated with the Ministry of Health of the Russian Federation. But the trade assortment is the goods, the formation of which takes place taking into account the specialization of the enterprise, as well as the available technical base and consumer demand.

In general, non-price supply factors that affect the quality are, of course, profitability and demand.