💡In this article you will learn about:
The logic of true rate of sale
How to leverage the True Rate of Sale metric effectively within Style Arcade
What is it?
True Rate of Sale calculates the rate of sale when the size is in stock so as not to underestimate a product's true potential - after all, if the size isn’t in stock you can’t sell it!
How is it calculated?
Let's take a look at the example in Table 1, this product has been active for 12 weeks and as you can see over that time frame some sizes were sold out. The True Rate of Sale allows you to time slice over this entire period to assess the unconstrained potential when planning reorders or future range plans.
Table 1:
How does True Rate of Sale handle small data sets?
Small data sets refer to limited units being allocated (to any location) and then selling out very quickly in a small number of weeks.
Sizes that have enough data points are calculated as listed in Table 1, however very small data sets are weighted to ensure the True Rate of Sale, i.e. the demand, is not overstated based on limited data.
Table 2:
How is the True Rate of Sale used to calculate the ideal size curve?
The True Rate of Sale curve looks at the TROS by size as a % mix of the total TROS.
🔎 FAQs
1. Does the true rate of sale calculate on partial weeks?
The TROS calculation currently excludes partial weeks. This means we do not account for sales units in the current week if the week hasn’t yet finished.
Week 1 | Mon | Tue | Wed | Thu | Fri | Sat | Sun |
Sold Units |
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| 2 | 1 |
Week 2 | Mon | Tue | Wed | Thu | Fri | Sat | Sun |
Sold Units | 3 | 5 | 6 | - | - | - | - |
For example, if today is Week 2/Wed and you’re viewing the TROS for a product, the current week's sales data is excluded because the week is not yet complete.
The calculation will only include the full weeks of sales (Week 1 - Sat & Sun) in the example.
2. Why does the true rate of sale curve look disjointed?
This could be due to certain sizes of the product having "sales data" recorded earlier than others.
For example, the lines in yellow 🟡 in the table below represent sales activity.
Size | Wk 1 | Wk 2 | Wk 3 | Wk 4 | Wk 5 | Wk 6 |
XXS |
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XS |
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S |
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M |
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L |
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XL |
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Size S & M for instance, had PR or influencer sales units shipped out before other sizes.
This means the true rate of sale would consider size S & M have been in stock from week 2, instead of week 3. Therefore underestimating the other sizes and their demand
3. Why does the true rate of sale recommend a much higher % for a fringe size?
The high true rate of sale percentage for fringe sizes could be due to some stores having stock for just one week, followed by sell-outs within that week, which artificially inflated the rate. E.g. Click & collect.
For this reason, Style Arcade deals with these scenarios by applying a weighing as shown in Table 2 so as not to overinflate the true potential of these sales.
Got any questions? Feel free to reach out to our in-app chat for assistance 🤩