Making accurate Sales Forecasts in Music2Go is crucial in ensuring that you are stocking enough of your products to meet the demand of your consumers, and to ensure that you are not wasting money in ordering unnecessary amounts of product.
A Sales Forecast is a prediction of the number of units you believe you can sell in the year ahead while also taking into consideration your existing stock levels. This is calculated by using the following equation:
The number of units you believe you can sell should be based on last year’s Actual Sales, found in the Product Contribution report, and next year’s Estimated Market Size, found in the Market Information report.
If you had Lost Sales last year then your sales forecasts may have been too low. Lost Sales shows how many more units could have been sold if your firm had ordered more stock.
Tutorial Video: How to Accurately Forecast Sales
Have a look at our tutorial video which explains Sales Forecasting in further detail: