Sales per Point of Weighted Distribution

In the previous example, considering that the average retailer stocks only 7 TVs, retailers and suppliers need to prioritize which models should be listed. The Sales per Point of Weighted Distribution (SPPD) is one of a number of metrics that helps you to do that. It is simply a ratio of sales (units or volume or value) divided by weighted distribution.

Sales per Point of Weighted Distribution (SPPD):

$$ \frac{Volume \,Sales}{Wtd \,Distribution} \,\,\, or \,\,\, \frac{Value \,Sales}{Wtd \,Distribution}$$

For example if a brand’s sales is 10,000 kg and its weighted distribution is 80%, then:

$$SPPD = \frac{10,000}{80} = 125kg $$
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