What are the different methods of sales forecasts?

Sales forecast can provide business a good idea of ​​future profits and sales level. Many businesses use different types of sales forecasts to predict the future of the new product, determine expansion or sales strategies, or simply analyze the expected levels of sales per month or annually. There are many different types of sales prognosis techniques, including history -based analysis, market research and predictions based on analyzing similar businesses. The forecasts may be short, medium or long range, although short reach forecasts tend to be the most accurate.

For established business, one of the simplest methods of sales prediction relies on historical data. Companies that have survived their first few difficult years are often able to perform accurate predictions for the future based on data from the previous year. In order for an analyst to perform a monthly forecast using the historical datatage annual sales this month. Understanding thatThe month fits into the annual sales level, it can be very important because different businesses can have different months of earnings in the highest level all year round.

, of course, the new business will not be able to rely on historical data. In order to come up with the prognosis of sales in the first few years, the newer enterprise will have to rely on external factors. One of the methods of sales prognosis that can be useful for new businesses is the analysis of competition. If a person opens the footwear store, he may want to look at the historical sales for other shoe stores that are approximately the same size and focus on the same demographic group. It may be useful to look at similar shops in similar communities rather than to analyze regional competition directly, as the addition of a new shoe store often changes the market.

It is important to avoid sales forecasts in a vacuum becauseE expenditure habits and trends in demand rely on dozens of external factors. The use of a market survey in sales prediction can help provide a clearer picture of the sales potential by including factors such as economic and demand trends. For example, if a small city has just acquired the main new source of employment, such as a factory, expenses could increase as a result of higher employment. Similarly, if the main product of the store has just been considered "out of fashion" by a large fashion magazine, sales can fall. Pay attention to external factors that can affect sales can create a more complex prognosis.