0
Sales forecasting is the prediction of future sales performance based on previous sales history, upcoming events, statistical analysis or anything else that may influence sales. For instance, if a competitor has announced they are going out of business, this will increase your sales forecasting for the next year. Sales forecasting is an important tool used by many businesses to fulfill several objectives.
The primary purpose of sales forecasting is to establish sales performance goals for your company. Using all available information is critical to establishing goals for your entire sales team, in addition to preparing and preventing slower sales periods. Predicting slower sales periods offers time to brainstorm and create plans to offset declining sales.
Sales forecasting also serves as an important tool for predicting expenses and planning budgets. Plan to have additional staff on hand for peak periods. Know in advance when you need to order additional inventory to keep up with special events, promotions or prime selling periods. Prepare for additional advertising and supply costs as warranted by sales forecasting reports.
Sales forecast reports are also useful as business-assessment tools. It is important to know how well your business has done in the past as well as how well your business should be doing. If sales performance falls short of the forecast numbers, assess the situation thoroughly to determine what factors contributed to the missed projections. Use your analysis to plan more efficiently and to properly coach your sales team to prevent future sales decreases.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Discuss the shortcomings of the percent of sales method of financial forecasting?
The percent of sales method of forecasting needs to based on a series of assumptions, and the forecasting would heavily relay on the percent of sales as the key tool for forecasting. Furthermore, the percentage of sales for the next period cannot prevent the forecasting result from the expectations of the investors.
Relationship between market demand market potential and sales forecasting?
demand forecasting is crucial for sales forecast
Structured judgemental sales forecasting?
Structured judgmental sales forecasting requires the affiliate marketer to make decisions based on historical data. The forecast is done with field knowledge of the product.
What is macro and micro forecasting?
Macro forecasting is related to forecasting external forces that affect the firm. This is concerned with forecasting the markets and determining market demand, supplies and other external factors such as legal, cultural, economic and technological environmentsMicro forecasting is concerned with forecasting internal environments such as sales forecasts, market share and product life cycles. These can be described as factors which firm has control over or able to acquire information to forecast what will happen. For example, a company can check its sales records to forecast next months' sales
What are the best objectives for sales lady?
to do your duties as a sales lady
Discuss the shortcomings of the percent of sales method of financial forecasting?
The percent of sales method of forecasting needs to based on a series of assumptions, and the forecasting would heavily relay on the percent of sales as the key tool for forecasting. Furthermore, the percentage of sales for the next period cannot prevent the forecasting result from the expectations of the investors.
How do you do journal entry for Forecasting Sales?
There is no journal entry for forecasting sales rather journal entry is made for actual sales when they occur.
What has the author Lee Gunlogson written?
Lee Gunlogson has written: 'Sales forecasting' -- subject(s): Sales forecasting
Relationship between market demand market potential and sales forecasting?
demand forecasting is crucial for sales forecast
What is the difference between the sales objectives and communication objectives?
difference between sales objectives and commuicatio objectives?
What is meant by sales forecasting?
Sales Forecasting is the process of estimating what your business's sales are going to be in the future.Sales forecasting is an integral part of business management. Without a solid idea of what your future sales are going to be, you can't manage your inventory or your cash flow or plan for growth. The purpose of sales forecasting is to provide information that you can use to make intelligent business decisions.
What is the difference between sales objectives and communication objectives?
Sales objectives focus on sales. Communication objectives are goals the organization have for effective communication. Good communication can increase sales goals.
What is sales quotas?
sales quota as mean of sale forecasting
How managerial economist help for sales forecasting?
sales forecast
What has the author Michael Geurts written?
Michael Geurts has written: 'Forecasting sales' -- subject(s): Sales forecasting, Mathematical models
What has the author Thomas Frederick Dodd written?
Thomas Frederick Dodd has written: 'Sales forecasting' -- subject(s): Sales forecasting
Where could one go to learn about sales forecasting?
There is a website that has seven tips for improving your sales forecasting, however, a better option would be an online company called Your Training Edge run course to teach you about sales forecasting.
