Sales Forecasting Flashcards
Factors affecting accuracy and reliability of sales forecast?
Consumer trends
Economic variable
Competitor actions
Circumstances where sales forecasts are likely to be in accurate??
New business
The market is subject to technological advancements
Product is a fashion item
Significant changed to make let share.
Positives of sales forecasts
Estimate future revenue
Make data driven decisions
Allocate resources more effectively
Plan for future growth
Negatives of sales forecasts
Inaccurate
Overestimating
Time consuming
What is a sales forecast?
An expression of expected sales revenue
Why is it important
Helps a business capture relevant data so they can therefore plan ahead
What can it identify?
Risks
Opportunities
What is the MAIN problem?
It is only an estimate!!!
What three things does it consist of??
Revenue
Cost of goods sold
Gross profit
