What Are Unit Sales?

The sales unit method is one of the methods to determine the advertising budget, that is, the advertising budget can be determined according to the number of sales units in the previous year or the estimated number of sales units in the current year. For example, a certain enterprise stipulates that, for each bicycle sold by the enterprise, 0.3 yuan will be allocated as advertising expenses nationwide. Then, if the company sold a total of 100,000 bicycles nationwide last year, its advertising expenses for the current year will be 100,000 × 0.3 = 30,000 yuan. This method is more suitable for some large and expensive products, such as cars, houses, cameras, etc. Because the number of such products sold in a year must be countable, it is very simple and straightforward to determine the advertising costs using this method. ^[1]

Sales unit law

Right!

The sales unit method is one of the methods to determine the advertising budget, that is, the advertising budget can be determined according to the number of sales units in the previous year or the estimated number of sales units in the current year. For example, a certain enterprise stipulates that, for each bicycle sold by the enterprise, 0.3 yuan will be allocated as advertising expenses nationwide. Then, if the company sold a total of 100,000 bicycles nationwide last year, its advertising expenses for the current year will be 100,000 × 0.3 = 30,000 yuan. This method is more suitable for some large and expensive products, such as cars, houses, cameras, etc. Because the number of such products sold in a year must be countable, it is very simple and straightforward to determine the advertising costs using this method. ^[1]

Features:

Take each product as a specific advertising unit, use a certain amount of advertising costs for each specific unit, and then multiply by the planned sales volume to get the total investment of advertising costs.

Calculation formula:

Advertising budget cost = advertising cost per product * planned product sales

advantage:

The calculation is simple and easy to grasp.

Disadvantages:

Reversing the causal relationship between advertising and sales makes it difficult to adapt to market changes.

applicability:

The sales unit method is mainly used in the following two types of goods:

One is higher-priced durable consumer goods, such as machinery and equipment, automobiles, refrigerators, televisions, etc .;

The other is a commodity with a clear sales unit, such as fruit, wine, cosmetics, etc.

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