Your Sell though percentage is a great tool in connecting the dots when looking at such things as dollar points of distribution or ACV. As with most analytics your trying to determine width and depth of your sales activity. You may have different SKUs with different depths of sell through. Sell though percentage can level out the playing field so to speak as you look at your inventory units across different SKUs and total units of these SKU’s sold.
Unit sales/total units sold = sell through %
Example:
You may have 4000 units of SKU X and you have sold 2000 of this SKU therefore your sell through equals 50%.
You also have only 600 units of SKU Y and you have sold 480 of this SKU therefore your sell through percentage equals 80%.
Even though you sold less unit sales of SKU Y your sell through percentage is in fact better than SKU X.
The next part of this picture is how much each SKU is being sold for? Is there a difference in pricing? You may see that depending on price the item that sold less inventory is making you more in sales dollars. What is the difference in number of outlets selling a SKU? Measuring sales performance is usually the starting point!
