Do you set a sales goal every month, which corresponds to your overall sales goal for the year?
If your answer is “sometimes”, you are not alone. It’s an important step that a lot of retailers miss (or skip) because they get too busy. OR they think because creating a sales goal is “guesswork”, it doesn’t really matter if they do it or not.
Here is why you should:
- It serves as motivation for you and your team
- It provides a tangible metric for how your team and your inventory is performing
- It is the basis for the action you need to take each month
Setting realistic sales goals is so important for your inventory planning.
Because planning what and how much inventory to order is only part of your inventory management. You also need a plan for selling that inventory!
In fact, your sales goal should be realistic, accurate and based on several factors, with only a tiny bit of guessing added in (since our crystal ball is bound to be a little fuzzy at times).
First, start by looking at last year’s numbers. For most months, you will use last year’s sales as a starting point. The exceptions are March/April which will always shift depending on which month Easter falls in, and the holiday season.
For the holiday season, you should always look at last October, November and December sales as they relate to each other. Often you can see a pattern with your sales for these three months and you can use this pattern to predict this year’s holiday season.
Next, you want to keep your annual goal in mind, and pay attention to how your sales have trended so far. Are you ahead? Behind? What else is possible this year?
Then look ahead to what is coming up. Do you have any special events coming up that might impact your sales?
Once you have your number (which should always scare you a little), start brainstorming which actions you and your team can take this month to reach it!
There are a lot of components to consider when setting an accurate sales goal, which is something the RETAILMavens have perfected with 93% accuracy using Management One’s Orbit platform. We provide this service to all our private clients in our Profit Club and Mastermind programs every month. Reach out to learn more!
Let us know in the comments once you have set your sales goal so we can high-five you!