Unit-based Sales Forecast

Chapter 11: Forecast Your Sales - Page 11.2

Unit-based Sales Forecast

Forecasting is usually easier when you break your forecast down into components. As an example, consider a forecast that projects $1,000 in sales for the month, compared to one that projects 100 units at $10 each for the month. In the second case, when the forecast is price x units, as soon as you know the price is going up, you also know that the resulting sales should also increase. Thinking of the forecast in components is easier.

The illustration below shows the first part of a units-based sales forecast. It takes assumptions for sales in units, then the assumed average prices, and multiplies them to calculate sales dollar values.

Units-Based Sales Forecast

The sales forecast multiplies unit forecasts by per-unit prices to calculate projected sales.

[Home] [Buy this Book] [Links] [About the Author] [About this Site] [Site Map] [Contact]