If the volume of production a company produces is on the order of 10,000 units or more, it is referred to as a “production volume.” If the volume is at the low end of the production quantity spectrum (i.e. 500 units) it is called a “production volume variance.
A production volume variance can make it difficult for a company to sell its product to a new customer base because it will likely set a new benchmark on the demand for the product. If a company’s sales volume exceeds the production volume, it is said to be overproducing.
The problem with production volume variance is that it can also cause a company to overproduce. For instance, a company producing 1000 units can produce more units to a new customer base because it is selling them at 1000 units or more. In this scenario, the company will be at the low end of the production volume variance, and its customers will be at the high end.
If you have a company that produces 10,000 units, your average customer will likely be your average customer. If your average customer consumes 1000 units of the company’s product, then the average customer will likely end up consuming less than 1000 units. And because the customers being overproducing are customers of the company, the company will be at the low end of the production volume variance.
The production volume variance concept is a fairly common one, and the most prominent example is the fact that Ford Motor Company’s average customer will be the average customer. Ford Motor Company’s average customer has likely been buying the same car for the past 20 years, so they’re likely to be buying the same car. And because customer orders are more likely to be high-volume orders, Ford’s average customer will probably be at the highest end of the production volume variance.
This is one of my favorite ways to get feedback. The first thing you see is the total number of customers at the dealership who are buying the same car for the same period: 12,988. If you look at Ford’s average customer list for every vehicle sold, Ford has a couple of really good examples of these numbers. It’s hard to say what the average customer might be like, but you could say that every Ford dealership has a pretty decent number of customers.
The problem is that the average customer is so different in each year that you can’t find the average customer in every customer list. This is one of my favorite ways to get feedback. The top-end of the customer list has a few hundred thousand customers, but the average customer has a couple of hundred thousand.
I think this is why the number of cars in the car market has gone down over time, because every year the average customer has become less of a consumer in the car market. This is why many people don’t buy new cars every year (or ever). The car industry is a business, after all, and they know they need to make money.
The average American household contains around 400 cars. That means that the average customer is in the top-end of the market, but for the last decade or so, the average car in the American home has been in the lower-end of the market, in terms of how many cars it needs to buy. There has been a steady decrease in the number of cars, but the average American still owns around a hundred cars.
Now in 2017, an average American car has been in the lower-end of the market, in terms of how many cars it needs to buy. That is not a bad thing. Even though that number has decreased, it is not in any way a bad thing. In fact, it is probably even a good thing.