Sales volume: what it is and how to measure it in money and units
Sales show how many units of goods or services a company sold over a period (in units) and how much revenue it received (in hryvnias). The metric provides a basic picture of demand and business scale, helps you see trends, assess plan fulfillment, and adjust actions in sales, marketing, production, and logistics in a timely manner.
Why the Metric Matters
Sales answer the questions: “How big is the market for us right now?” and “Are we moving toward our goals at the pace we planned?” They show the contribution of channels and products to the overall result, and the impact of seasonality, promotions, and pricing decisions.
Calculation
- In units: the number of all units shipped or delivered over the selected period is summed.
- In hryvnias: the value of units sold is summed, usually excluding VAT and excluding returns.
Internal policy should define the moment a sale is recorded: upon payment, upon shipment, or upon a certificate of completed work.
Calculation example
In March a store sold 1,200 units for 960,000 including VAT, with 40 units returned for 32,000. Sales volume in units is 1,200 − 40 = 1,160 units; in money excluding 20% VAT it is (960,000 − 32,000) / 1.2 = 773,333. Compared with February (1,050 units) that is 10.5% growth.
Data Sources
Cash register systems and POS, CRM, ERP/1C, billing; for online channels — the store CMS, marketplaces, and payment providers. It is important to align product catalogs and rules for discounts and returns.
Interpretation
Watch the trend over time and compare with the plan and the same period last year. Analyze the “units ↔ ₴” relationship: when the amount grows while the quantity falls, this may indicate higher prices or a shift toward more expensive SKUs. Track returns and cancellations separately — they affect the “quality” of revenue.
Useful Breakdowns
- Products, categories, SKUs
- Sales channels: online, offline, marketplaces, partners
- Regions, points of sale, teams
- New and repeat customers
- Discounts, promotional offers, price ranges
Dashboard Visualizations
- Line trend by day/week/month (units and ₴)
- Bar charts by channel and category
- Plan vs actual with the percentage of fulfillment
- Map by region
- Top N products and sellers
Setting Targets
Targets are set based on historical data, market plans, and operational capacity (production, warehouse, logistics). Take seasonality and marketing activities into account. It is convenient to set “minimum / norm / target” thresholds and use alerts for deviations.
Common Mistakes
- Substituting orders for actual sales
- Ignoring returns
- Comparing unequal periods (different numbers of working days)
- Mixing currencies or VAT rates
- Inconsistent product catalogs across different systems
Questions for Discussion
- What was the main growth driver this period?
- Where are we falling short of the plan, and what quick actions are possible?
- Are discounts and returns “eating up” the growth in hryvnias?
- What hypotheses do we have for increasing the number of deals or the average order value?