WinningKPI - Sales - KPI for Measuring of Markdown Goods % posted in category Sales KPI details: This indicator is for measuring of the number of products sold at markdown prices as a % of all products sold, in a specific time frame.
More details:
Companies can use this KPI to determine the direction of marketing efforts for goods that can bring back the most profit.
Also, the Markdown Goods % can be used to gain a clearer picture of where the profit comes from (what products, at what prices)
Formula:
Number of markdown goods sold/total number of products sold x100
KPI Units: %
KPI Time Frame: update once a month or quarterly Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
Businesses markdown their goods in order to increase demand, and it is basically an alteration of the price, within legal and market regulations. Annual sales are an example of Markdown goods optimization.
A retail business may choose to measure the markdown goods % as a whole or per individual products.
For example, if they have an expensive brand of jeans, called Brand A, over a year period they may choose to measure the % sold at discount/markdown prices, as a % of the total number of pairs of jeans sold.
Total number of jeans sold: 500
Total number of jeans sold at markdown prices: 300
Markdown %;
300/500 = 0.6 = 60%
Oana Boteanu | + | September 6, 2012 at 7:53 am
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