Retail Sales Goals Help

How to Calculate Retail Sales Goals

Retail Sales Goals Help

Whether you’re an online retailer or you have a brick and mortar shop, figuring your daily sales goals is a must. This is an easy way to track what your daily sales are and compare it with your sales from last year. If you don’t have sales from the previous year, then you only need to figure how close (above or below) you are to your weekly goals.

I’m assuming that you’ve already figured out what your yearly sales goal is. If you haven’t, that is a must. These formulas are for online shops as well as brick and mortar shops.

This is an easy formula to track what your average sale amount is. Take your Gross Daily Sales ÷ Number of Transactions = Sales Per Transactions (or average sale).

Gross Daily Sales $ ____________  Number of Transactions _________

Here are some other handy formulas to help you manage your daily sales:

Compare Daily Sales against last years sales:
Today $ – Last Year Day $ = Amount over or under compared to last year
Amount over or under ÷ last years day = decimal
Multiply decimal by 100 to get % over or under

Compare Weekly Sales goals:
Actual Sales to Date ÷ Weekly = % To goal you are in the week
Amount over or under ÷ last years day = decimal
Multiply decimal by 100 to get % over or under

Monthly: Do at the end of each week
Actual Weekly Sales ÷ Monthly = % to goal you are in the week
Amount over or under ÷ last years day = decimal
Multiply decimal by 100 to get % over or under

If you’re not tracking these numbers, you’re not seeing the whole picture of your business. You need to know where you’ve been and what you have to budget for or cut back on. There are also some other numbers that you need to understand as well.

  • Sales – Cost of Goods Sold = Gross Profit

Break even point is where business sales equal expenses. There’s no profit or loss.
Fixed costs / Gross margin % = Break Even Point $ (also known as break even analysis)

The formula: Take your fixed costs, divided by your price, minus your variable costs.

Break-even Point = Fixed Costs/(Unit Selling Price – Variable Costs). This calculation will let you know how many units of a product you’ll need to sell to break even. Once you’ve reached that point, you’ve recovered all costs associated with producing your product (both variable

Above the break-even point, every additional unit sold increases profit by the amount of the unit contribution margin, which is defined as the amount each unit contributes to covering fixed costs and increasing profits. As an equation, this is defined as:

Unit Contribution Margin = Sales Price – Variable Costs

Does your brain hurt yet? This is so important to do as a business. Especially if you have inventory. I’ll have a post soon on more things to track and how to calculate if you have enough inventory or too much. You can always contact me for a consultation about your business and get a power session with me to go over your current marketing plan.

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