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# Sales Percentage Calculator

Contributor
Reviewed by Abhinash J
Editor

Published: April 11, 2023

Sales percentage refers to the percentage of sales of a certain item contributing to an organization's total sales. It is calculated by dividing the total sales of an item by the total revenue to get the percentage of the sale.

Sales of an individual item

Number of units sold for a single product or service
\$

Total Sales

Overall revenue generated by a business over a given period
\$
Sales Percentage Calculator
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See how it's calculated

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## What is Sales Percentage?

For businesses dealing in multiple products, it's essential to know how much a single item of product is contributing to their revenue growth. Sales percentage is the ratio of the sales of a single item to the total sales of all products of a company.

## How to Calculate Sales Percentage?

Here's how teams can calculate Sales Percentage:

Sales Percentage = Sales of an individual item / Total sales of the business * 100

Let's say, company X deals in various baby care products such as body lotion, shampoo, body powder, etc. They were able to sell 300 bottles of body powder in the first quarter, priced at ₹100 per piece. And their total sales for the first quarter stood at ₹5,00,000.

That means your quarter sales percentage for baby powder product would be

Sales percentage = [Sales of baby powder product / Total sales of the business] * 100

= [(300*₹100) / ₹5,00,000] * 100 = 6%

## Why is Calculating Sales Percentage Important?

Calculating how much an individual item contributes to a business's total sales is essential to understand how items are performing on an individual level. When calculating sales percentage, you can track how well a product or service plan performs.

This helps in making decisions regarding how to tackle that product or service line – whether to increase or stop its production. In addition, it helps forecast the company's future sales of the product or service. This ensures that –

• The company does not understock or overstock products.
• The capital doesn't get blocked unnecessarily.
• Sell products or services to customers without any interruptions.

## Tips to Improve Sales Percentage

Here are five ways you can aim to increase the sales percentage rate.

### #1: Research the Competitors

Find out the companies who are selling similar products or services. Closely look at how they are marketing their products, understand their USP, and what you can do to differentiate yourself from them. This will give you an edge over your competitors.

### #2: Create a Marketing Campaign

The more consumers know about your product, the more the chance of sales. Running successful marketing campaigns can help increase brand awareness. It can include online as well as offline advertising – setting up billboards, running paid ads and social media campaigns, etc.

### #3: Run Promotional Activities

Investing in products or services with a good sales percentage can get you a higher ROI. For example, give discounts or coupons that entice customers to make a purchase. You can even run a free trial on your services or promise a money-back guarantee if they aren't satisfied with your product. This can amp up your sales percentage.

### #4: Ensure Customer Satisfaction

Conduct customer surveys on how satisfied they are with your product or service. This will give you insights into what's working for you and which aspect of your product or service needs improvement. This also shows your customers that you value their opinions and helps build a strong relationship with them.

### #5: Provide a Seamless Customer Service

Customer service is crucial to retain your customers and to increase your repeat purchase rate. Customers who are satisfied with your service will likely do business with you again. You can set up a help desk that helps get their grievances resolved as fast as possible.

Free Resource

Sales Percentage Calculator

Use this Excel/Google Sheet template to calculate your sales percentage growth. Determine the percentage increase or decrease in your sales over time with our sales percentage calculator, so you can track your progress and make informed decisions.

What is the sales percentage?

Sales percentage refers to the percentage of sales of a certain item to a company's total sales.

How to calculate sales percentage?

The formula for calculating the sales percentage is simple. You need to divide the total sales of an individual item by the total sales of all products for a specific period and multiply it by 100.

Why is it important to calculate sales percentage?

Calculating the sales percentage helps determine how your product or services are performing on an individual level, and accordingly, you increase or decrease the production or stock of that product.

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