Stock-to-Sale Velocity Calculator
Calculate inventory needs to meet your sales targets
Business Parameters
Tell us about your lingerie business
How It Works
This powerful business tool is for lingerie retailers and brand owners. It calculates the stock-to-sale velocity, a key metric for inventory management. You will input data such as the number of units sold in a period and the average stock on hand. The calculator then determines how quickly your inventory is selling, helping you forecast future demand and optimize your stock levels.
Why It's Important
In retail, inventory is money. Holding too much stock ties up capital and increases carrying costs, while having too little leads to missed sales and unhappy customers. Stock-to-sale velocity is a critical KPI that helps you find the sweet spot. It allows you to make data-driven decisions about reordering, promotions, and discontinuing slow-moving items, ultimately maximizing your profitability.
Understanding Your Results
The result is your stock-to-sale velocity, often expressed as a ratio or a number of weeks of stock. A high velocity means products are selling quickly, while a low velocity indicates slow-moving inventory. You can compare this metric across different products, seasons, and marketing campaigns to understand what's working. Use this data to refine your purchasing strategy, improve cash flow, and ensure you have the right products in stock at the right time.
Tips & Tricks
- Use this calculator to identify your 'hero' products (high velocity) and your 'dud' products (low velocity).
- Consider putting low-velocity items on sale to clear them out and free up capital.
- Use your sales velocity data to negotiate better terms with your suppliers.
- A good point-of-sale (POS) or inventory management system can help you track the necessary data automatically.
- Always factor in seasonality. Your velocity for swimwear will naturally be much higher in the summer than in the winter.