KPI for Measuring of Sales of a Product as a % of Total Company Sales posted in category Sales

WinningKPI - Sales - KPI for Measuring of Sales of a Product as a % of Total Company Sales posted in category Sales

This indicator is for measuring the % of the sale of one product from the total sales of the company.

More details:
It is a very useful tool for businesses to identify its strongest or weakest products. Based on this evaluation, companies can focus their marketing efforts (even production/product acquisition) on what brings more profit to the company.
For instance, if a refreshment company sale a total of 600 million dollars of its 10 main products, but only product X’s total sales is 150 million, the % of sales of product X from the total sales is calculated as shown below.

Formula
Total sales product x / total company sales x100

In our example: 150/600 x100= 25%

KPI Units: %

KPI Time Frame: update once a month or quarterly

Posted by Oana Boteanu | Help to protect community: Flag for moderation

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Here are comments:

This KPI is helpful to identify the strongest product. As a bar owner, I often calculate this for individual brands for my drinks.
From my 4 brands of beer on draft (beer A, B, C and D) I calculated the percentages of sales individually over a quarter and realized that one of them (the most expensive) sales very little.
Example:
If brand A, B and C sale on average 30% each and Brand D sales 10% or less, it is more profitable for my business to stop selling brand D. Instead, I use the revenue to purchase a different version of Brand A, B or C and promote that at a good price to my existing customers.

Oana Boteanu | + | September 6, 2012 at 7:54 am

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