Sales profit potential

The profit potential of aspartame was a major factor in the takeover of Searle by Monsanto. (Current aspartame sales are ca. 10 ton/a, equivalent to ca. 850 x lO /a). The success of the Nutrasweet Co. in establishing aspartame in the market. This has... 

The size of the company involved is also veiy important. Obviously a project with only relatively modest market and profit potential may be of considerable importance to a small company, but would probably not prove attractive to a large multinational company with much larger sales and profit criteria. 

In the selection of clinical candidates to pursue, the company does take into account competitors in the traditional sense of those that would compete for sales and reduce the profit potential. Some drugs are dropped from development plans because they are expected to be poor competitors with established drugs, especially where the competitor has a more effective sales force in the therapeutic area. 

One point of conflict is in the term "wide sales." The major factor limiting an instrument company s growth and profit potential is its development and engineering capacity. Within our own definitions, we aim to get 5 of profit before taxes for each instrument engineering dollar spent.. .. In general we cannot do a profitable business making instruments for only one company s needs, because the number would be too small to warrant the development expense, (p. 31A)... 

Material properties can be adjusted to meet government, local, or industry standards or requirements. Higher sales value and increased profit potential. 

Market potential (86%) Strategic fit (85%) Technical feasibility (84%) Sales objectives (81%) Product advantage (79%) Profit potential (71%) Technical feasibility (85%) Sales objectives (81%) Product performance (79%) Product advantage (77%) Strategic fit (76%) ROl (73%) Product performance (86%) Sales objectives (79%) Quality objectives (78%) Profit potential (75%) Custraner acceptanee (73%) Product advantage (72%)... 

When sales go above expected levels, the company is at risk for lost profits. If actual sales were 130,000, for example, the profit potential is 3.9 million instead of the budgeted 3,000,000, a market mediation cost of 900,000. Most measurement systems ignore this reality. 

By varying the prices, quantities and costs, the farmer can assess the potential profitability of the different products or enterprises. One approach is to estimate how much has to be sold in order to break even at a particular price. Alternatively, the farmer can estimate how much is available for sale and, on that basis, work out what price needs to be charged in order to break even. If the price appears to be too high, it is for the farmer to decide between increasing sales or reducing costs. 

The use of lime or other alkaline substances to neutralize acid is quite costly, especially when large capacities are involved. Also there are potential values in the acids and ferrous ion, and therefore, recovery of these substances will not only reduce the pollution load, but their sale or reuse will represent a profit to the industry. 

The distortions that patents provoke were reviewed recently by Kremer.14 Monopoly prices create both static and dynamic distortions. On the one hand, some consumers will not be able to pay prices that are fixed above the marginal cost in order to recover the investment in R D. On the other hand, potential investors will not necessarily take the consumer surplus into account when they decide to carry out research projects. The value of a patent - and in this case of a pharmaceutical - may be very different for different consumers, but price discrimination is impossible. The industry may shelve certain projects owing to the lack of a satisfactory return, because of the difficulty of price discrimination. Kremer even claims that the welfare loss due to monopoly prices is in the region of a quarter of the sum of the profits and the consumer surplus. Other authors, such as Giiell and Fischbaum,15 estimate welfare loss as being around 60 per cent of the sales figure. 

The sales department indicates that the sales potential for products 1 and 2 exceeds the maximum production rate and that the sales potential for product 3 is 20 batches per week. The profit per batch would be 20, 6, and 8, respectively, on products 1, 2, and 3. 

These plans envision composition-of-matter patents on drug molecules for which development timelines and market potentials can be estimated. Product stories are the clearest, most rational plans because profitable sales can be projected and rNPVs calculated. On the other hand, investors usually perceive higher risks because the rNPVs tend to be dominated by single product candidates for which historical failure rates are high. Examples of product stories include Amgen s development of Epogen and Amylin s development of Symlin. 

Based on the pilot-scale operation at the Britannia Mine, the vendor estimated the full-scale capital costs to be 2.5 million. Zinc and copper sulfates in the processed waste may be sold to smelters. The sale of these metals was estimated to produce a potential net operating profit for the plant of 130,000 per year (D16056F, p. 38). 

Increasing the profitability of the supplier can only be realised by the expansion of the business activity since the price is fixed. It must therefore be the aim of the supplier to sell more of its product or to find new potential revenues by combining sales with services. One solution could be the new business model Chemical Leasing. 

One study suggested that if a physician has a relationship with a pharmaceutical company, he or she tends to prescribe more of its products (Komesaroff and Kerridge 2002). In itself, this is not evidence of wrongdoing by either party. There are many potential explanations as to why this occurs. A pharmaceutical company may inform a physician about a new product because this is the best product available for the treatment of certain of the physician s patients. In this case, the relationship may result in a "win-win" situation. The pharmaceutical company incurs costs educating the physician about the new product, but may recoup these costs and make a profit on sales prescribed by the physician. The physician may obtain information he needs to give better care to some of his patients and they may benefit accordingly. 

Market Development. As Defined in Wiley s Successful Commercial Chemical Development, edited by H. M. Corley, market development is that field of promotional effort between basic research and regular sales, by which existing or potential markets for new products and entirely new fields of utility for old products are developed and tested for profitable salability. Included m this function is joint development activity between the producer of the product and the potential user, the distribution of samples and sales literature, packaging, labeling and pricing, among other functions. 

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