1. Conducting A Sales Volume Analysis The sales volume analysis is part of the company’s evaluation process. “A careful and detailed study of the company’s sales volume; done to determine where sales come from” A manager must look at end results—then find out (1) what happened, (2) why it happened, and (3) decide what to do about.

2. Subdivisions used to analyze sales: By Territory By Salesperson By Product By Customer By Order Size

3. 80—20 Principle A phenomenon that occurs when 80 percent of customers, products, territories, or orders produce only 20 percent of total sales volume or profit. This also means—20 percent of accounts produce 80 percent of volume or profit (called “key accounts”).

4. What is a “soft spot?” “a market segment or other unit of the company (product line, territory, etc.) that is suffering from below standard performance” Soft Spot Principle—the manager achieves the greatest performance improvement by concentrating on the weakest areas of the company

5. 80—20 Principle of Products Often, a few popular products bring in most of the company’s sales volume. Sales may be analyzed by product groups, product lines, or individual products. There may be no relationship between a product’s volume and its profitability.

6. Why do a sales volume analysis if sales are increasing every year? Because important information or trends may be hidden in the aggregate sales data.

7. Colorado Ski Company