Sales Forecasting and Appraisal

One important ingredient in determining your sales objectives is how well you have sold in the past and your selling expectations for the future e.g. previous selling success might result in you being given stiffer objectives to achieve in the future. Equally, a downturn in the economy might cause you to believe that you would sell less. As a consequence, your sales objectives might be downscaled as well. The principal point here is the importance of your sales forecast. An inability to properly forecast your sales may result in over stocking, if actual sales are less than those expected. However, if you underestimate your sales you will be unable to meet customer needs. In addition, costs will be incurred and revenue will be lost. Effective forecasting will ensure that appropriate stock levels are available, staffing levels effective, costs minimised and revenue maximised. Achieving your sales objectives is your prime concern. To ensure their achievement you will need to continually check and assess how well you are selling i.e. you will need to appraise yourself. In this context appraisal refers to every aspect of your selling activity e.g. administration, communication, information gathering. Appraisal will obviously involve other people in your organisation e.g. your sales manager. However, much of the appraisal will be carried out by you i.e. it will be self-appraisal. This ability to self-appraise is a major part of managing yourself.