Metrics To Measure Your Sales Performance

April 27, 2022

When you have a fashion brand, the management of sales directly affects your profit. You might not be aware of how to measure your performance, that’s why Friendly Factories came up with six metrics that can help you determine whether your sales are on track or not.

At Friendly Factories we are interested about the subjects that interest our partners, we are aware that there’s a community of entrepreneurs with us and we hope this blog post can be helpful!


This is a pretty basic subject, you can refer them as revenue or turnover.

What does it mean? They measure your total income for a certain period of time. Daily, weekly, monthly or yearly sales are commonly recorded. Pick the ones that fit you the best, and don’t forget to keep track ;)

Number Of Customers

Have you ever thought that more customers implies more transactions? Here’s a tip: for retail stores, be careful do not mix a number of visitors with a number of customers. Visitors only become customers when they buy!

Value Per Transaction (VPT)

VPT = Total sale value divided by the number of transactions.

This is the most effective measure. How much do customers spend for each order? The average sale determines sales per order not sales per customer, as the same customer could initiate multiple transactions.

Unit Per Transaction (UPT)

UPT = Sold quantity divided by the number of transactions.

This gets a little trick. Generally when your average sale goes up, the item count rises, but it would be better the item count rises slower than the average sale. At the end of the day you want more money and not just to sell more.

Inventory Turnover

= Cost of sales divided by the ending inventory value

Pay attention to this, the inventory turnover is a radio of amount inventory sold over a period of time. You might think a higher inventory turnover radio is usually preferred as it indicates that the most sales are being generated given a certain amount of inventory. However, a very high inventory radio could result in lost sales, as there’s not enough inventory to meet the demand, so be aware! The cost of sales is the total selling price of the items…

Average Days To Sell The Inventory

= 365 divided by the inventory turnover

Very important measurement. The average days used to sell all your inventory on hand. You should know that normally a luxury business takes more days than a mass market retailer!

Hope you have enjoyed learning a little bit about fashion business metrics, keep following Friendly Factories for more entrepreneur tips, sustainable fashion news and textile market information.

Source: Fashion Business Manual by Fashionary

Key Words: Fashion business, fashion store, sales performance, entrepreneurship, sales, textile market.

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