Supply and demand is a huge part of every industry and each business. Even though they may be basic economic concepts, it is difficult to maintain the right balance. Too much product in storage can start to be expensive, but too little and someone else will fill the demand. In our latest conversation with Asif Ali Gohar about his rice leather and his growing brand, he shared his thoughts on keeping that balance.
Demand is the desire of the community to purchase your items or products. The higher the demand, the more you will sell, the faster it will sell, and sometimes you can increase the price of the product and people will continue to pay it. When considering how to meet this demand, Asif Ali Gohar uses predictions for how much they will sell each month and year, based upon the growth in the previous year as well as the sales month to month in the current year. As demand goes up, there is a need to make more product to keep up with demand, and thus more supplies must be purchased and stored.
To manage these calculations and decisions, Asif Ali Gohar does not just try and do his best guess or leave the results up to fate, but he has hired someone for this task. They pull all the sales numbers and projections and use that to do the calculations, passing that information on before any order is placed. Knowing when to delegate is a key part of running any successful business, and the larger the business gets the more delegation needs to occur.
In order to ensure that the best decisions are made it is key to trust those who have worked and trained in those situations and is prepared to make the hard choices. Knowing how much to make of any item, and how much stock to keep as well as what level of supplies to maintain is a complicated mathematical equation, and it takes into account upcoming events, new product launches, and other considerations. There is never an exact answer to the question, so Asif Ali Gohar suggests that you trust your best guess sometimes, and work to make that a successful decision.