A sales analysis report shows the trends that occur in a company's sales volume over time. In its most basic form, a sales analysis report shows whether sales are increasing or declining.
At any time during the fiscal year, sales managers may analyze the trends in the report to determine the best course of action. Managers often use sales analysis reports to identify market opportunities and areas where they could increase volume. For instance, a customer may show a history of increased sales during certain periods. This data can be used to ask for additional business during these peak periods.
Actual Sales
A sales analysis report shows a company's actual sales for a specified period -- a quarter, a year, or any time frame that managers feel is significant. In larger corporations, sales analysis reports may only contain data for a subsidiary, division or region. A small-business manager may be more interested in breaking sales down by location or product. Some small, specialized businesses with a single location are compact enough to use general sales data. A sales analysis report may compare actual sales to projected sales.
Product Demand
One of the trends that a sales analysis report can reveal is whether there's a problem with product demand. A long-term decline in sales for a single product may indicate several problems. The competition could be eroding market share, or other products sold by the same company may be doing the same. A long-term decline may mean that it's time to stop selling the product or revamp the brand. In some cases, a decline can reveal that customers' needs are changing. Managers could rebrand or repackage the product for a new purpose or a new target market.
Estimates
In some industries, such as residential real estate, a sales analysis report is used to estimate market prices. Characteristics or features of a product may determine its market value, based on what the market has paid in the past. For example, specific features of a home may cause it to increase or decrease in value. Such features include the number of bedrooms, square footage, fireplaces and swimming pools. In other lines of business, this same principle can be applied to a product's raw materials, brand name or reputation.
by Helen Akers, Demand Media