Average Sale Explained:
(a) What is this? This calculator tells you what the average customer spends. It is also known as average transaction value.
(b) What does this tell me? Retailers use this meansure to determine how successful sales staff have been at selling. The more customers like what your business has been offering, typically the more this number grows.
(c) Why should I use it? To determine how well your business is selling. Generally this number hovers around the same ragne. For example, you might have an average sale of $15.00. That number fluctuates naturally, but a sustained increase in the average by an additional $1.50 will increase sales for the business by 10% assuming the number of transactions remains static. There is much you can do to increase this average number, this calculator helps you assess the impact of your decisions.
(d) Caution: This calculator should not be used in isolation. This calculator does not consider total profit, nor how many transactions the business has. Both of these measures are critical measures and should be used in conjunction with at least Net Sales, planned GP%, GP$, number of transactions and total expenses.