Sales Volume: Why Its Critical and 15 Ways To Increase It

The faster the sales cycle, the more products you can sell within a short span of time. Hence, 4,000 units is the break-even sales volume needed to achieve zero profits. To find out your sales volume, you need to multiply the number of items you sell per month by the necessary period — a year, for example. Suppose your supplement company sells 10,000 units of multivitamins but budgeted for 8,000.

Signs That It’s Time to Walk Away From a Prospect, According to Sales Leaders

Invest in training programs to equip your sales team with the necessary skills and knowledge to effectively communicate your product’s value proposition. Motivate and incentivize your sales staff by setting clear goals, providing rewards for achieving targets, and fostering a positive work environment. Encourage teamwork and knowledge sharing among your sales team to maximize their performance. Calculating the percentage of sales-volume per sales representative will help to divide the area amongst the team.

How to calculate percentage sales volume

(Units of individual items sold multiplied by 100) / All-products units sold equals the total sales volume %. Think of your existing customer base as an extension of your sales team. Without knowing the number of units sold, it’s hard to assess the productivity and efficiency of your sales team, or the effectiveness of your marketing activity. The unit formula calculates sales volume by multiplying the number of units sold by the time period. Sales volume helps determine a company’s market share, which represents the portion of total sales a business captures within a specific industry or market.

Know Your Unique Selling Proposition

Packages and bundles are not only a great way to increase sales volume, but also average order of value. For example, if you sell an average of 20 pairs of shoes each month, your annual sales volume would be 20 times 12. It’s important to mention that many confuse sales volume with total sales. If you aren’t measuring sales volume, you’re not getting a full picture of your sales performance. Having honed in on your product’s key differentiators, it’s time to figure out how to communicate them in a way that resonates with your target buyer.

What is sales revenue? Ultimate guide on how to calculate it

For example, if your sales reps are not happy with their territories, you may want to assign them to areas where they can perform better. This is the reason why mapping and implementing a good territory design is essential. New reps may also be overwhelmed when assigned to accounts that require years of experience. Knowing the strengths of your people and playing to them will keep them happier and more productive, which can also bring a positive effect to your sales in the long run. Knowing your opponents will allow you to be more strategic with your own services.

Tips To Increase Your Sales Volume

Continuous market analyses allow you to keep an eye on your target audience and monitor the demand for products or services like those your company sells. Speaking of online interactions, make sure you and your sales team are taking advantage of all the digital channels out there for communicating with prospects. The term “sales volume” describes the number of units a company sells during a given reporting period (a month, quarter, year, etc.). If your business is new or if you are just not getting enough sales yet, you will need to set a target customer profile. These are the “ideal” customers that need your products and services. By knowing your ideal customers, you can create strategies for selling that will attract your targets without spending too much of your resources.

Higher realized prices were primarily driven by Trulicity, Humalog® and Verzenio®. New Products(i) revenue grew by $3.07 billion to $4.51 billion in Q3 2024, led by Mounjaro and Zepbound. Growth Products(ii) revenue increased 5% to where’s my refund $5.19 billion in Q as growth led by Verzenio and Taltz® was largely offset by lower Trulicity sales. If your company has a consistently high sales volume, that can be an indicator that it’s time to focus on scaling and expanding.

• Your target audience is likely diverse, and your sales team should be, too.
• This is one of the things you should be ready to do as a business owner.
• This can be calculated using either the unit formula or the percentage formula from the sales volume formula.
• As a result, you will know whom to consider when the time comes to deliver raises, award promotions, recommend people for leadership positions, etc.
• Diversity and inclusion allow you to cast a wider net and build relationships with people who might not have been interested in your products or services previously.

Once you understand those pain points, you can draw parallels between their challenges and why your product is the right solution. When qualifying prospects, you want to reach those who are the best fit for your product and are most likely to make a purchase. Pushing for the sale from the wrong people can be a frustrating endeavor that can hurt your sales efforts. Here, we’ll cover sales volume basics, why it matters, and 12 ways to increase it. Calculating sales volume is very simple, but it is important to know the difference between gross sales volume and net sales volume. Arm your business with the tools you need to boost your income with our interactive profit margin calculator and guide.

Sales velocity is the measurement of how fast you can move prospects through your sales pipeline to generate revenue. The faster you’re able to do this, the more potential customers you can reach. By increasing sales velocity, you can reach more customers, which can positively impact your sales volume. Your company can choose to measure sales volume by individual product units, or by entire cases of product.