# How do we put a dollar value on the impact of having your brand placed in more stores within a chain?

How do we put a dollar value on the impact of having your brand placed in more stores within a chain? Aside from your present distribution point and ACV percentage, knowing the worth of one more point of distribution can be a useful metric.

Example:

Your brand is presently holding at an annual sale of \$650,000 in a chain and is sitting at 55% distribution. By calculating how much each additional point of distribution you can capture, you will be able to answer how much more would be sold at a percentage gain.

The first step in all of this is to calculate your velocity in order to put a dollar amount to a point of distribution (SPPD):

Calculation:

650,000/55 = \$11,818

By our calculation we see that each point of ACV distribution for your brand in this chain sells for \$11,818. From here we can plug in the velocity to understand how large the opportunity is for different levels of distribution:

By looking at our sales chart you can see that if your brand hits 70% ACV distribution this means 15 points above current distribution which is worth over \$175,000 annual in sales:

70-55 = 15

15 * 11,818 = 177,250

That makes it 27% higher than your current annual sales:

177,250/650,000 = .272 (27%)

With point of distribution worth, you can now put an amount to missing sales either at the brand or item level in a specific chain. Understanding velocity and ACV % warrants its own future article as well as chain behavior. Stronger reliable stores within a chain for example, tend to bring in more products and earlier on. Velocity may be lower as you move towards 100% chain penetration.

Scroll to Top