Sale Cycle Example
The table to the right summarizes a representative set of Publix sale items in terms of how frequently each item was on sale during 2011 (53 store ads). For this example, assume that Publix is your primary sale store.
Column Key Sale - A discount from the regular price BOGO - Buy One Get One Free Sale Total - Sales + BOGOs Freq - The % of weeks the item was either on sale or was BOGO Weekly Cons Rate - The consumption rate Buy - Estimated quantity one would have to buy when the item is on sale in order to avoid paying full price. Observations 1. In this particular selection, 33% of the items went on sale more than twenty percent of the time (23 items out of 69). Implications: You should always buy these items at Publix (i.e., your primary sale store). But, since these items go on sale relatively often, you will not have to keep as many in your inventory. 2. Another third of the items were on sale between 10 and 19% of the time (22 items out of 69). Implications: Again, buy these items at Publix. However, since these items go on sale less often, you will have to keep more of them in your inventory. This will increase the chance for spoilage, so you'll have to more carefully monitor the quantities you purchase. 3. The final third of the items went on sale less than 10% of the time (24 items out of 69 or 33%). Implications: Because these items go on sale so seldom, you will probably not be able to always buy them on sale. And this is where your base store comes into play. The everyday prices at your base store will most assuredly be lower than the everyday prices at your primary sale store (Publix in this example). So, buy these items (the ones that seldom go on sale) at your primary sale store when they are on sale, and at your base store when they are not. Summary Tracking your primary store's sales provides a way of knowing how long it has been since a particular item has been on sale and can, in turn, help you decide how to shop for that item. Visit the Essential Spreadsheets page for more information on this sale tracking spreadsheet. NEXT: Price Components |
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