CODEWITHSUNDEEP
phpstatisticspercentage
eozzy
eozzy

Reputation: 68710

Calculating real value

I'm trying to run sales report to find which products sold the most, but sold/available doesn't really give a real measure of of performance because for example:

Product 1: 6 sold of 8 = 75%
Product 2: 232 sold of 500 = 46.4%

.. so although Product 2 is clearly selling well but based on the percentage of sales, its scores low in the report. I'm sure there must be some formula to calculate this but being a non-programmer I haven't come across it, and googling didn't find me anything useful either.

Upvotes: 0

Views: 46

Answers (1)

Alex
Alex

Reputation: 17289

Your question if I get it right is not about programming or about math.

It is about business analysis :-)

You wrote : is clearly selling well.

What is your criteria to decide what is WELL?

In different situation and business flows there are many parameters.

For example if your product 1 price is 1 000 000. - you did huge sales. and at the same time price of Product 2 is 0.01 - who told you that is clearly selling well ? why is it clear for you?

Another example is frequency and history. If your Product 1 was in stock for a while 6 month before with no sales, and last week you'va sold 6 of 8 - you must get a bonus from your manager. On another hand, if your Product 2 last sale (232 items) was 6 month ago. and you can sell 0 items during las 6 month. Your boss could decide to fire you.

So what is your question about? :-)))

Maybe you can use formula: Product 1 = 0.75 (%) * PriceOfProduct1 vs Product 2 = 0.464 (%) * PriceOfProduct2 and compare amount of sales.

but usually there much more than 2 or 3 criterias managers analyse the sales data. there could be some planed volume against real achievements. season factor multiplicator and many others.

So what are yours criteria to say is clearly selling well ?

Upvotes: 1

Related Questions