market

Grading is the process of dividing the products into lots which are similar characteristics in shape and size, type, weight, quality and performance etc. Products of different qualities should be separated into groups or lots and similar quality products are put into a grade. There are two types of grading; one is fixed grading which refers to storing out of goods on the basis of standard(size, quality etc) already set, to be followed from year to year. Next, variable grading refers to various standards for goods from year to year.

Importance:

The importance of grading are similar to the importance of standardization. They are easy sales, wider market, no risk, satisfaction, goodwill, easy claims against losses, easy loan facility, reasonable price, low transport cost, reduce sales cost, product information, mass production etc.

There are four bases for standardization and grading. They are quantity, size, quality and colour.

a. Quantity: Quantity is one of the important base for the standardization and grading of the product. The standard weights and measures are kilo, meter, liter etc. Thet determine quantity which ensure smooth marketing operation. They are enforced by the government and its local bodies.

b. Size: This is another important base for the standardization and grading of the product. Size helps to determine the standard and grade of the product. Readymade garment, shoes, nut-belt, pipe, screw, etc. are sold in size standards.

c. Quality: Another base for the standardizatation and grading of the product is its quality. It is difficult to establish the standard. However high, medium and low quality are the bases for this purpose. Furniture, food items, cotton and medicines etc. are classified under this basis.

d. Colour: Some of the products are also standardized and graded on the basis of their colour. Mostly, agricultural products such as vegetables and fruits are standardized and graded on this basis.