Analysis of product sales will help you identify the most promising products in terms of sales. It also allows you to track downward and upward trends in sales. With this information, you will be able to more effectively manage your sales and plan your professional activities.
Necessary
Sales information, calculator, computer
Instructions
Step 1
Analyze the dynamics and structure of product sales. To do this, keep track of how many units of production were purchased during the reporting period. Compare the data obtained with the previous or reference period. The result can be a conclusion about the growth, decline or stability of sales. Determine the rate of revenue growth by dividing the data for the current period by the data for the past. Find out how many products were sold on credit.
Step 2
Evaluate the uniformity of product sales. To do this, determine the coefficient of variation or unevenness. The less it matters, the more evenly sales are distributed over periods.
Step 3
Determine the critical sales volume. This indicator demonstrates at what amount of products sold the enterprise will cease to be unprofitable, but has not yet begun to make a profit. To do this, the fixed costs must be divided by the marginal income level.
Step 4
Determine your ROI. It represents the profitability of your business and the feasibility of its existence. Profitability is calculated by dividing the profit from sales by the revenue from them. This indicator should be analyzed over time. It demonstrates how much profit each ruble of revenue brings.
Step 5
Analyze your competitors' sales growth rates. This will allow you to identify your position in the market and strengthen the position of the company in the future.
Step 6
Identify the reasons for the decline in sales, if any. Most often, they are the approach of the product life cycle to the end, high competition in this market sector, market oversaturation. Depending on the reason, the company must either launch a new product, or strengthen its strengths, or enter new market segments. A timely decision can save you from a further decline in sales.
