4 Ways to Analyse Your Product Sales
You can analyse your product sales against various criteria, such as period, customer or product category. Once you have produced a sales report, though, you may need one more level of analysis: sorting the results by a particular criterion. Below are four criteria you can sort sales reports by, and why each is useful:
#1. Sorting by quantity sold
This report shows you which products you sold the most of by volume. A report built this way can help you plan purchasing over a longer period, since it shows which products sell most in quantity terms so that you can buy more of them.
#2. Sorting by margin
This report lets you see which products deliver the largest margin across their total sales. These will often not be the best sellers by volume, and a report like this can prompt you to think about how to increase sales of these products, or how to improve the margin on the ones further down the list.
#3. Sorting by sales value
This report lets you see which products deliver the highest sales value — that is, quantity sold multiplied by selling price. A very useful report, and one that helps you consider which products need a price adjustment, up or down, to improve sales.
#4. Sorting by cost of goods sold
This report lets you see which products require the largest outlay to buy in or manufacture. These are usually the products with the highest purchase price that also sell well. A report like this may give you grounds to negotiate a lower purchase price with your supplier, or to try to reduce your manufacturing cost if you make the product yourself.
Analysing your sales reports further can help you make important business decisions the right way.
TiramisuERP lets you sort the sales reports you produce by the following criteria:
- Name, item, location
- Quantity sold
- Margin
- Sales value
- Cost of goods sold
- Sales value excluding VAT