Calculating the effectiveness of a promotion

[subornaakter40]

The essence of calculating the effectiveness of a promotion carried out by marketers is as follows: first of all, the amount of gross income from the sale of products is determined, taking into account the difference between retail and purchase. The formula is as follows:

Vd = (Tsr – Ts) × K, where

Вд — gross income indicator from the sale of inventory on sale days;

Цр — the cost of goods during the belgium mobile phone numbers database promotion;

Ц — purchase price of goods;

K is the number of goods sold.

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Then the amount of profit from the promotion is calculated:

Pr = Vd – Z, where:

Pr is the profit figure from the sale;

Z — funds spent on the advertising campaign and event organization.

However, blindly following the formula will not give analysts an accurate picture. Let's assume that a company purchased 12 items. The cost per unit is 1,000 rubles. The retail price is 2,000 rubles. 10 items were sold at this price. The contract does not provide for the return of goods.

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Dmitry Svistunov
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I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.

And I know that such leaps are always the result of painstaking work in five areas:

Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.

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To sell the leftovers, a promotion is organized, where the goods are offered for purchase for 1500 rubles. As a result, another unit of goods is sold. The organization costs are conditionally 100 rubles. We calculate the profit:

Pr = ((1500 – 1000) × 1) – 100 = 400 rubles

Theoretically, profit has been made. However, it should be taken into account that without the promotion, this sold product would have remained on the warehouse shelf, with the purchase already paid for. The product is also unlikely to be sold at the regular price next season. And, therefore, the costs of keeping it in the warehouse increase.

[yadaysrdone]

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