# Rate of Sales (Adjusted Average Sales per Store)

#### Exhibit 30.6   Average sales per store and rate of sales per store for Nescafe and Maxwell House.

The rate of sales adjusts the average sales per store to reflect what the sales would be if the stores handling the product were average in size.

$$Rate \,of \, Sales = Avg \,sales \,per \,store × \frac{Numeric Distribution}{Weighted Distribution}$$ $$Or$$ $$Rate \,of \, Sales = \frac{Sales \,Volume}{\# \,of \,stores ×\,Weighted \,Distribution}$$

Reverting to our Maxwell House (MH) example:

• $$\large{ Sales \,Volume =30,000 \,kg/month}$$ $$\large{Numeric \,Distribution \,(ND)= 5\% }$$ $$\large{Weighted \,Distribution \,(WD)= 50\% }$$ $$\large{Number \,of \,Supermarkets = 2,000}$$ $$\large{Number\,of\,Stores × ND=100 = \#\,of\,stores \, distributing \,MH}$$ $$\large{Number\,of\,Stores × WD=1,000 =Equivalent \,\#\,of\,stores \, distributing\, MH}$$ $$\large{Rate\,of\,Sales=\frac{Sales\,Volume}{\#\,of\,Stores ×\,Weighted \,Distribution}}$$ $$\large{=\frac{30,000}{2,000×0.50}=30 \,kg/store}$$

This means that Maxwell House sells 30 kg per month per averaged sized store selling coffee in supermarkets. This adjustment for store size provides for an unbiased basis for comparison of sales velocity.

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