Rate of Sales (Adjusted Average Sales per Store)

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.

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

Reverting to our Maxwell House (MH) example:

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

This means that Maxwell House sells 30 kg per month per averaged sized store selling coffee in supermarkets.

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