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A change in the company's sales mix is also protecting profits.
Other issues such as profit by product and changes in sales mix could also be explored.
In his evidence, however, he showed some uncertainty about how the sales mix had varied during the loss period.
He said the difficulties went beyond the regional setup and that "something in their sales mix isn't working."
The sales mix did not change significantly this quarter.
In addition, the company's sales mix provides flexibility to adapt its commercial strategies according to market needs.
Consumers favoured lower cost items, and therefore the sales mix had the impact of lowering margins.
Identify their size, market share, sales mix (products/service), years in business, and their reputation.
The decrease in this gross margin is directly attributable to the sales mix of third party products delivered.
Not just slower sales, but sales mix should have deteriorated too. '
The true sales mix must be ascertained.
Reductions in buyer incentives and an improved sales mix pushed average selling prices for Ford up by about $2,700 per vehicle.
This activity changed the sales mix of the Company, increasing absolute dollar profits while reducing gross margin percentage.
"The sales mix is still lopsided, tilting toward the low end, and lending institutions are only making really safe mortgage loans."
The margin improvement was attributable to a more profitable sales mix coupled with an aggressive cost containment program.
Ensure your sales mix blends sales of low-margin items with higher margin lines.
This sales mix has contributed, in part, to the Fusion's relatively high residual value compared to the Taurus.
It added that the sales mix was less favorable than last year, when the company was selling more large machines, which have bigger profit margins.
A 4.5 percent improvement in pricing and sales mix translated into a 0.2 percent drop in revenue.
Nissan dropped 12 places to 24th, but Mr. Sargent said that was primarily because the brand’s sales mix had changed.
Lower gross profit margin from sales mix was offset by more efficient manufacturing operations and better labor and spending control.
Profitability is also under pressure because the company's sales mix has been shifting, toward lower-margin products, like chips for inexpensive desktop computers.
The change in license gross margin is a result of fluctuations in the sales mix of products delivered.
Also, fourth-quarter 2012 sales mix included increased shipments to customers in Asia, which realize lower revenues per ton due to the higher freight.
Deere said sales to the U.S. farm sector included "a highly favorable sales mix of larger equipment."