Sales Analysis Methods

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subornaakter40
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Sales Analysis Methods

Post by subornaakter40 »

There are many effective and widely used methods for assessing sales volumes, allowing one to analyze their dynamics and structure and take into account the range of products.

Analysis of the dynamics of enterprise sales
It is carried out with the aim of forex email list determining sales volumes and comparing the obtained data with similar time periods of the previous year.

This method allows you to identify the growth or decline in sales volumes. Here, the revenue amount is used as a tool, but not only. You can take into account the indicators of profit increase, customer base and other data. The formula used is as follows:

Sales growth = (Revenue for the period under study / Revenue for the previous period) * 100

The following conclusions are drawn:

there is a positive trend in sales if this indicator is above 100%;

sales do not increase, but do not decrease either, if the result is 100%;

volumes fall if the figure is below 100%.

Sales analysis here is performed on the basis of data collected in an Excel table; no special programs have been developed for this.

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ABC sales analysis
It is carried out in order to determine the importance of different types of goods for the final sales volume.

This method is very effective for retail. It helps to identify product groups that sell best and provide the largest share of revenue, as well as products with weak demand, which bring the least benefit.

Here, for calculations, you will need the revenue from the sale of certain product groups or a specific product. Based on such a comparative analysis of sales, you can adjust the product range.

ABC sales analysis

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ABC analysis of sales is based on the so-called Pareto principle, which states that the 20% of the most popular products account for 80% of the company's total revenue. The idea here is that all products offered to customers are divided into three categories:

Category A - the best-selling items, bringing in (increasing total) from 0 to 80% of revenue.

Category B - these seem to be in-demand items, but the share of revenue from them is still not that large.

Category C - completely unprofitable goods.
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