Simple sales budget math... Im stuck!

[Rhuumz]

Hey all,

Just a quick one here but for some reason I cannot for the life of me figure out what I am supposed to do...

Here is what I would like to figure out....

I have a sales budget say of 100 sales. I have 20 working days a month and I want to find out on a daily basis what % i am above or behind, but its not as simple as 100/20 and working out what % each day is worth because each day is variable but the end of month goal is 100.

So my daily budget could be Monday 3 sales... Tuesday 6 sales... Wednesday 4 sales... Thursday 4 sales... Friday 3 sales...
And each week is not even either so it could be week one 20 sales... week two 20 sales... week three 25 sales... week four 35 sales...

any help is much appreciated!

R

 

[stapel]

I have a sales budget say of 100 sales. I have 20 working days a month and I want to find out on a daily basis what % i am above or behind, but its not as simple as 100/20 and working out what % each day is worth because each day is variable but the end of month goal is 100.

So my daily budget could be Monday 3 sales... Tuesday 6 sales... Wednesday 4 sales... Thursday 4 sales... Friday 3 sales...
And each week is not even either so it could be week one 20 sales... week two 20 sales... week three 25 sales... week four 35 sales...

Please reply with the exact text of the exercise. Thank you!

 

[Rhuumz]

Please reply with the exact text of the exercise. Thank you!

Hey,

This is not an exercise from a book. This is real life. This is sparta!

 

[stapel]

Then you'll need to start by defining your situation more precisely. For instance, if there is no set schedule for sales or set percentage of sales to have been made by a particular time, then how is one to determine by what percentage one is "ahead" or "behind" of schedule?

We can't help you figure out if you're "on schedule" if you haven't defined a schedule. I don't know about other readers, but I'm not even clear on quite what you're wanting...?

 

[Rhuumz]

Then you'll need to start by defining your situation more precisely. For instance, if there is no set schedule for sales or set percentage of sales to have been made by a particular time, then how is one to determine by what percentage one is "ahead" or "behind" of schedule?

We can't help you figure out if you're "on schedule" if you haven't defined a schedule. I don't know about other readers, but I'm not even clear on quite what you're wanting...?

Hey Thanks for that.

So I am given a budget of 100 sales but like i said above its not as simple as just dividing it amongst the working days. To give you an idea of what I mean each working day is treated very specifically. So i do know what the targets are each day but they are all over the shop depending on a variety of factors... and as long as I hit the end goal. I will lay out an example..

day 1 - Today I have meetings since its beginning of the month so I have a target of only 2 sales target
day 2 - Today is a Friday and historically traffic is very low on Fridays so again 3 sales target
weekend - not working
day 3 - Today is Monday its a very busy day on Mondays but its also first week of the month so it takes a week or 2 to get new leads so 4 sales target
day 4 - Tuesday is also a busy day but again need more lead generation 4 sales target
day 5 - Wednesday things start to slow up a bit 3 sales target
day 6 - Thursday again is slower 3 sales target
day 7 - Friday I have personal things so only working half day 2 sales target
weekend - not working
day 8 - Monday again leads are still coming in slowly so 5 sales target
day 9 - Tuesday I have training 4 sales target
day 10 - Wednesday business as normal 4 sales target
day 11 - Thursday slowing in the week 3 sales target
etc...
etc..
etc..
day 19 - 2nd last day of the month big close out promotion with discounts etc... 10 sales target
day 20 - Last day big sales deals! 12 sales target

Total = 100 sales

So when I start the month I can plan things out in such a fashion but I would like to know what my % variance is each day is and how far above or below the targeted path.

so

day 1 - target 2 / sold 2 - 0%
day 2 - target 3 / sold 2 - -1%
day 3 - target 4 / sold 5 - 0%
day 4 - target 4 / sold 0 - -3%
etc..

Does that help?

 

[stapel]

...each working day is treated very specifically. So i do know what the targets are each day but they are all over the shop depending on a variety of factors...

I don't see any way of working out a "formula" (if that is what you're asking for) to compute, in general, your very specific and changing goals. Sorry.

 

[Rhuumz]

I think I may have figured it out myself....

Tell me if this makes sense...

((Month to date sales/Month Target) - (Month to date target/Month Target))*100 = Month to date variance

so to put some numbers in...

((12/100) - (15/100))*100
= (.12 - .15)*100
= -.03*100
= -3%

 

[JeffM]

I think I may have figured it out myself....

Tell me if this makes sense...

((Month to date sales/Month Target) - (Month to date target/Month Target))*100 = Month to date variance

so to put some numbers in...

((12/100) - (15/100))*100
= (.12 - .15)*100
= -.03*100
= -3%

I would not divide by the month's aggregate projection.

I would simply calculate 100 * (actual sales for the month) / (projected sales for the month).

The rationale is this. Let's take your example of 12 actual sales month to date versus 15 projected sales month to date. Your formula measures this as being 3% below the entire monthly goal of 100. However if you keep missing your goals by this much for the remainder of the month, you will actually sell only 80, not 100. Based on your actual performance against where you thought you would be, you are 20% off. Up until the last day of the month, the denominator in your formula will never represent what you were expecting to happen over the time period that you are monitoring.