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Transcript of Forecasting Sales
What is Forecasting Sales?
Forecasting sales is a difficult area of management, is the Projection of achievable sales revenue, based on historical sales data, analysis of market surveys and trends, and salespersons' estimates. Also called sales budget, it forms the basis of a business plan because the level of sales revenue affects practically every aspect of a business.
A sales history is the systematic recording of all sales achieved during a predetermined time period.
Point of Sale system has been designed to provide especific sales information.
How to forecasting sales
1. Review the last six months of sales figures on a daily, weekly, monthly and quarterly basis.
2.Inspect the competition
3.Calculate the percentage increase or decrease of sales from month to month
4.Calculate the percentage increase or decrease value for the last 6 months.
5.Remove the months where the changes can be related to a specific activity and calculate the average change
6. .Take the dollar value of sales for last month and multiply by the average percentage sales change
Reasons for undertaking sales forecasts
Businesses are forced to look well ahead in order to plan their investments, launch new products, decide when to close or withdraw products and so on.
In Food Industry is important to have a sales forecast, the guests served will provided the revenue from which the operator will pay basic operation expenses and create a profit.
Types of Forecasting
There are two major types of forecasting, which can be broadly described as macro and micro:
Macro forecasting is concerned with forecasting markets in total. This is about determining the existing level of Market Demand and considering what will happen to market demand in the future.
Micro forecasting is concerned with detailed unit sales forecasts. This is about determining a product’s market share in a particular industry and considering what will happen to that market share in the future.
% Increase Estimate
Guest Counts Forecast
1.00 + % Increase Estimate
Sales per Guest Forecast
Sales Per Guest
Average Sales Per Guest Forecast
Guest Count Forecast
Advantage and Disadvantage