Selling Rate of Products Example
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NOTE 26 - SELLING RATE OF PRODUCT FORMS
The following chart estimates the selling rate for each product form.
| YEAR 1 | YEAR 2 | YEAR 3 | |
| Estimated selling rate of product in Diskette Form | 60% | 40% | 20% |
| Estimated selling rate of product in CD Form | 35% | 50% | 65% |
| Estimated selling rate of product in Internet Form | 5% | 10% | 15% |
| Total Percentages (total Customers) | 100% | 100% | 100% |
In year one, J&B is estimating that 60% of customers will purchase the product in diskette form, 35% of all customers will request the product in CD form, and 5% will buy the product in Internet form. In year two and three, CD sales and Internet sales are expected to increase due to the fact that more consumers will have computers with Multi-media features (CD ROM) and more consumers will be connected to the Internet. These trends will certainly benefit J&B since higher gross margins are seen on CD sales and Internet sales (relative to diskette sales).