Posted in Marketing and Strategy Terms, Total Reads: 156
Definition: Salable Goods
Salable goods are products manufactured by a company, which are checked by the quality assurance team and given a go ahead by the marketing team and sales team for dispatching it. The basic meaning of the word salable is anything which can be sold.
Goods which are manufactured by the company generally go through a rigorous check within the company itself before they are dispatched to the customers. Initially, when a product is launched, the marketing team goes out into a test market and tests the products and if they find a good enough market, the product is usually given as a sample to check whether they are accepted or not in the market.
Once it is approved by the marketing team of the company, the goods manufactured are classified as salable goods. For example: When a company like Godrej was launching a series of mini refrigerators catering to the niche market where people cannot afford a regular sized refrigerator. It was very important to gauge the demand publicly from such customer segments and then decide whether to go on with full production or not.
The demand was seen decent enough to proceed and a sample refrigerator was used and checked for performance by the marketing team, when they saw everything was according to the specifications and customer expectations, it was classified as a salable good.