learn the most from your data comparison, your time periods should eliminate any variables that will significantly skew your data. For example, you wouldn’t want to compare december and june, because holiday spikes in december will likely affect your numbers. But you can compare june to july, q1 to q2, or q1 of 2022 to q1 of 2023.
Net sales for each period
the net sales for your business is the total sales revenue, excluding any sales returns, allowances, and discounts. You will need to get the total sales revenue from your finance team for each period. Just subtract returns, allowances, and discounts to get net sales.
Why this is important: determining the net sales ensures the accuracy of your growth measurements. Otherwise, you’re including revenue that will ultimately be subtracted — like returns, allowances, and discounts.
Once you have both your comparable periods and thailand phone number list net sales for each period, plug these figures into the sales growth formula.
sales growth rate example
to understand this concept, let’s see how alb directory this would play out for a new bookstore.
John, the bookstore owner, wants to track the business’s sales growth rate throughout its first few months in business. He launched the business in understand your user’s goals late summer, so opts to look at september and october. September net sales were $5,000, while october net sales were $6,000.
Let’s see how he can use the sales growth rate formula to determine the bookstore’s growth.