This is not magic, but knowing how to handle the data, here we teach you how to get forecast sales for anything to be taken by surprise in his shop.
The sales forecast it is an essential task for the management of a store, the fact of being able to estimate the amount of products that a retailer will sell in the future, will allow the owners of these shops prepare the inventory you will need.
The predictive analysis you can help us to study and discover the factors that determine the amount of sales that will have a retail store in the future, this article will help you discover how to draw forecast sales and you get the greatest benefits.
The prognosis of sales it is the backbone of a business plan, people measure a business and its growth in sales role, and the get sales forecast it is possible to set the standard for expenses, profits, and growth.
Steps to make sales forecast
The sales forecasts allow you to manage your business more effectively, below we detail the steps you must follow to achieve this.
1. Initial planning
In the case of existing Businesses
The starting point for your sales forecast is sales last year, or of a particular period of time. Before you are able to pre-empt the outcome is important to observe the level of sales by customers of the previous year.
In the case of customers that represent a significant value of sales, you might ask them if they plan to change your level of purchase for the foreseeable future.
In the case of New business
If you still do not have a trading history, the new stores have to make assumptions based on market research and applying even your good judgment.
To do this is to make estimates based on the number of customers who are expected to work, in this way it is possible to plan the volume of resources required in areas such as production, storage and transport.
2. Sales estimates
Every year is different, so they should be listed to the changing circumstances that could significantly affect their sales. These factors, known as the assumptions of sales forecast , form the basis of your forecast.
It's not about being negative, but must be sought the power to obtain reliable results which provide not only the positive scenario, with the goal of being prepared for any circumstance.
For example:
2.1 The market
- The market retail will grow by 2%.
- Your participation in the market is reduced by 2%, due to the success of a competitor.
2.2. Use of resources
- Doubles its sales force of three to six people, half of the year.
- Spend 50% less on advertising, which will reduce the number of queries from potential customers.
2.3 Overcoming barriers of sale
- You are moving the store to a better location, which will attract a 30% more than customers who buy the next year.
- Is increasing prices by 10%, which will reduce the volume of goods sold in a 5%, but will result in an increase of 5% in the general revenue.
2.4 Your products
- You are incorporating a range of new products, sales will be small this year, and the costs will be higher than the profits, but in the next few years will reap the benefits.
- Have products that have recently been established and that have the potential to increase sales quickly.
- It has established products that have sales regular but have little growth potential.
- We have products that face a decline in sales, perhaps due to some other top product of a competitor.
3. Development of forecasts
For example; you could predict that a customer will purchase products with a value of $ 1,000. If it is estimated that there is a 70% chance of this happening, the forecasted sales to this customer are $ 700, that is to say, 70% of $ 1,000.
Sell more products an existing customer is much easier to make a first sale to a new customer. Therefore, the rates conversion for existing customers are much higher than those of the new buyers.
To predict the actual sales, is predicting what you think will sell. In general, this is much more accurate than the forecast from a target and then try to figure out how to achieve it.
The prognosis of sales completed not only used to plan and monitor their sales efforts, but is also a vital part of the flow box.
4. Common faults of forecasts
4.1 Illusion
It is very easy to be too optimistic, this is why it is a good idea to look back at the outcome of the previous year to see if their numbers were realistic. The new business should avoid the error of calculating the level of sales needed in order for the company to be viable and then include this amount as the prognosis.
Make sure that your assumptions sales are linked to the sales forecast detailed, otherwise, you may end up with information completely contradictory.
4.2 Overcome lapses fixed
Make sure that the prognosis is finalized and agreed upon within a time scale set, because if you spend a lot of time refining the same can walk away from their objectives.
Avoid excessive adjustments in the forecast, even if you find that it is too optimistic or pessimistic.
4.3 Without consultation
The personal of sales the store probably has the best knowledge of the intentions of the purchase of its customers, therefore it is important to take into account:
- Ask for their opinions
- Give them time to ask your customers about this
- Get the support of the sales team for any goal that you set
4.4 No feedback
After you have achieved draw the prognosis of sales, you need someone to challenge you, to do this it is advisable to go for people that are experienced, such as your accountant or a senior sales executive, to review the entire document.
Conclusion
The use of the predictive model focused on the retail sector is a great tool that can help retailers to determine the amount of sales that are going to perform in the future.
Power get forecast sales retailers will be able to plan for the amount of products you are going to need and, as a result, make more efficient the whole process and increase your profits.
The task of predicting outcomes in terms of sales, can be facilitated through the use of technological tools, such is the case of the developed system Intelligenxia called Lab retail, it works as an automated predictive that will help you to obtain the desired objectives.
