Sales Run Rates
Keep Your Finger on The Pulse of Your Business!
Run Rates is a unique method of sales analysis and reporting to evaluate whether you are on track to budget and also to indicate the variances by week, month or whatever period you choose. Also this tool is a great metric to allow you keep on top of these critical areas of your business, providing a snapshot view, this method is a quick and easy way to evaluate and analyse your business trends.
How Do Run Rates Work?
Using the same formula that is used in limited over cricket this tool is a great way to have a snapshot of exactly where you are in line with your budgeted expectations for sales and profit on a monthly, or for an even closer look, a weekly basis.
• You can see at glance what your current run rate (actual per month) is compared to the required run rate (budget per month) along with the comparison to the same period last year.
• This great tool will also give you the expectation for achievement to budget (for the year) based on the current levels of sales and profitability; this allows you to see quite clearly the shortfall or over achievement at a glance.
• This is a great tool for any type of business, whether you are running your own small business or you are a sales manager in a larger organization looking to keep a very close eye on how your individual sales people (or overall sales) are tracking to budget.
See How to Use the Sales Run Rates Template
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How Do You Use This Great Sales Analysis Tool?
1. Monthly: - whereby you can check you sales and profitability on a monthly basis.
2. Weekly: - for an even closer look and greater control of your sales and profitability. This is a great way to keep your finger on the pulse even if you do not measure your sales on a weekly basis.
• All you need to do to achieve this greater level of control is to break your sales down into weeks - total for the year (12 months), divided by 52 (weeks).
• This can be used to great effect if you have a team of salespeople, once they provide their sales results each week simply input this data into each of their own templates and then they have a clear picture of where they where to budget for both sales and profitability by week. This could be a great discussion point when you give these to each of your salespeople to present and comment on at the Monday morning sales meeting!
• A clear understanding of what is happening on a weekly basis may be far better than waiting for the end of the month to take corrective action, as in some cases it may be far too late and the required result is slipping away from you.