When it comes to starting a new business, good marketing is something you want to invest in, but aside from that, if you choose to sell your products in multiple retail stores it is crucial to find out which are the best stores to do business with and which you should stop doing business with based on numeric distribution, PCV and ACV.
You are probably wondering what the heck numeric distribution is, or what PCV and ACV is…
Well essentially, they are measures that help you (the owner) or managers understand sales and help them make decisions or expand their growth strategies based on those answers.
This is the total sales of a store carrying your brand divided by the total sales of all stores carrying your brand. This could be very valuable information to you when choosing a store that gets high volume traffic BUT, just because they make a lot in revenue does not mean most of those sales come from selling a product in the category of your product. This is why looking at PCV is your best choice, if you have access to it!
I say this is the best choice because PCV allows you to get an accurate picture of how much a store is selling a product similar to yours and if that category of product is in high or low demand. PCV is the category sales of the store that carries your brand divided by the total category of sales for all the brands selling your product.
Both provide you with helpful insight but PCV is what you want to look for in terms of accuracy! You want to do business with a store that has good traffic but that also has good traffic for your product!
If you missed my last blog check it out here