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How to Calculate "Average Sale Value"

29 Jul, 2018 by David Seamans

Simply add up the invoices raised in the relevant time period subtract the total of adjustment (credit) notes and divide by the total number of transactions.

We use the tables we had in “Active Clients” to determine Average Sale Value for the same periods.

Week 1

Transaction # Date Client Amount
1001 13/10/2018 Smith $95.00
1002 14/10/2018 Brown $1,100.00
1003 15/10/2018 Wyatt $155.00
Total 3 Transactions $1,350.00

Average Sale Value = $1,350 / 3 = $450.00

Week 2

Transaction # Date Client Amount
1004 20/10/2018 Smith $100.00
1005 21/10/2018 Jones $200.00
1006 22/10/2018 Smith $55.00
C/N 345 22/10/2018 Smith -$80.00
1007 22/10/2018 Brown $150.00
1008 24/10/2018 Green $110.00
C/N 346 24/10/2018 Green -$10.00
Total 7 Transactions $525.00

Average Sale Value = $525.00 / 7 = $75.00

We have seven transactions (each transaction increments our count by one). The invoice transactions total $615.00 less the adjustment (credit) note amounts ($90.00).

Week 3

Transaction # Date Client Amount
1009 27/10/2018 Brown $65.00
1010 28/10/2018 Brown $1,100.00
1011 29/10/2018 Wyatt $155.00
Total 3 Transactions $1,320.00

Average Sale Value = $1,320.00 / 3 = $440.00

Week 4

Transaction # Date Client Amount
1012 1/11/2018 Brown $100.00
1013 1/11/2018 Wyatt $200.00
1014 2/11/2018 Smith $55.00
C/N 347 2/11/2018 Green -$80.00
1015 3/11/2018 Brown $150.00
1016 3/11/2018 Green $110.00
C/N 348 4/11/2018 Green -$10.00
1017 4/11/2018 Green $215.00
1018 5/11/2018 Green $250.00
1019 5/11/2018 Wyatt $50.00
1020 5/11/2018 Black $500.00
Total 7 Transactions $1,540.00

Average Sale Value = $1,540.00 / 7 = $220.00

We have seven transactions (nine invoices less two credit notes). The invoice transactions total ($1,630.00) less the adjustment (credit) note amounts ($90.00).

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David Seamans

Co-Founder at Elements, Retired CPA and Company Coach with 35 years of experience building better businesses.