Reading your sales data: five simple reports that guide better buying

Most shops now use a billing app or software. Every bill records what was sold, when, and for how much. Over a few months, this becomes a detailed picture of your business. Yet many shopkeepers never look at it beyond the daily total.

You do not need to be good with numbers to use this information. Five simple reports, looked at regularly, can change how you buy.

1. Top sellers by quantity

Which items sold the most pieces in the last month? This list shows what customers come back for. These items should never run out.

Check that each of your top sellers has enough stock to last until the next delivery. If any are low, reorder now.

2. Top sellers by profit

Quantity is not the same as profit. A cheap item that sells a hundred pieces may earn less than a mid-priced item that sells twenty. If your software records cost prices, look at which items earn the most total margin.

These are the items that pay your rent. They deserve good shelf positions and steady stock.

3. Items with no sales

Which items have not sold at all in the last 60 or 90 days? This list is uncomfortable but valuable. Each item on it is money sitting on a shelf.

For each one, decide: move it to a better position, bundle it with a bestseller, discount it, or return it to the supplier if possible. And note it so you do not reorder it.

4. Sales by category

What share of your sales comes from each category — cars, figures, stationery, games, soft toys? Compare this with how much shelf space and stock each category has.

If stationery is a fifth of your sales but has a tenth of your space, it probably deserves more. If a category takes a large share of space but brings in little, consider reducing it.

5. Sales by day and month

When do you sell the most? Which days of the week are busiest? How does this month compare with the same month last year?

This helps with staffing — more people on busy days — and with buying. If sales always rise in a particular month, stock should arrive before it, not during it.

Make your data reliable

These reports are only as good as the billing behind them. Common problems include:

• Selling items under a general code like "Toy" or "Misc" instead of the specific item. Then you cannot tell what actually sold.
• Missing cost prices, which makes profit reports impossible.
• Stock not entered when received, so stock levels in the system are wrong.

Fixing these habits takes some effort at first, but it makes the information far more useful.

A monthly routine

Set aside an hour at the start of each month. Run the five reports and write down:

• Items to reorder
• Items to stop ordering
• Items to move, bundle or discount
• Categories to grow or shrink

Take this list with you when you speak to your suppliers.

Combine data with what you see

Data tells you what sold. It does not tell you what customers asked for that you did not have. Keep a notebook at the counter for requests you could not fulfil, and look at it alongside the reports. Both together give the full picture.

The short version

Look at your top sellers by quantity and by profit, items with no sales, sales by category and sales by time. Keep your billing accurate so the reports mean something. Review them monthly, make a clear list of actions, and combine the numbers with what customers tell you.