How do companies know if a product is doing well?

How do companies know if a product is doing well?
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1 Answer

Answer :

Well I am not an expert in retail logistics. But your initial hunch is correct that they can not tell based on how much a store buys from them on the initial purchase. But, if the item is selling well the retail store will have to order more. And this is how a company can tell. Also they can track their own production and see how many they have sitting around etc. Obviously the manufacturer does not know how many Ipods are sitting around in a store. But if best buy keeps ordering X amount of units a month they know they are selling roughly the same amount of units a month.
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