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Definition

Sales Velocity is a term describing the rate at which dollars or units pass through in a given time (basically, sales divided by distribution) and measures how well a brand sells when it is available. Two major velocity measures are "sales per point of distribution (SPPD)" and "sales per million (sales per $MM ACV)."[1]

Construction

      Sales per point of distribution ($) = Sales ($) ÷ % ACV distribution
      Sales per million ($) = Sales ($) ÷ [% ACV distribution x (Market ACV ÷ 1,000,000)]

References

  1. ^ CPG Data Tip Sheet. Velocity: How Well Your Product REALLY Sells. <http://www.cpgdatainsights.com/measure-sales/velocity-how-prod-really-sells/> (cited 2 June 2015).

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