Drivers of sales You must understand the strength of and trend in the industry's sales drivers. The growth in population as a whole influences demand, as does growth in particular segments of the population. Lifestyle Shifts in taste, fashion and culture affect demand. Government Government regulations have an impact on demand and pricing in many industries. Fiscal and monetary policy are powerful influences on the economy.
Technological innovation can create new demand.
Other Seasonal factors and weather conditions can affect demand. Competition can stimulate demand and affect pricing. Conditions in the capital markets can affect demand by raising the costs or limiting the amount of financing available for purchases. Volume is sales in units and price is the financial value paid by the buyer. They tend to be highest when demand exceeds supply, but in periods of excess capacity prices are usually low.