Example #2: Sales Growth

Volatility and Sales GrowthExample #2: Sales Growth

Yellow Highlighting=Change from Beginning of Period

Beginning of Period
Customers in Market	Amt Purch from all Suppliers	Primary Supplier	Primary Supplier % of Cust Purch	Units of Sale by Primary Supp	Secondary Supplier	Secondary Supp % of Cust Purch	Units of Sale by Secondary Supp
Customer A	1500	Supplier 1	60%	900	Supplier 2	40%	600
Customer B	1200	Supplier 1	80%	960	Supplier 2	20%	240
Customer C	1000	Supplier 2	50%	500	Supplier 3	50%	500
Customer D	0	None	0%	0	None	0%	0
Total	3700			2360			1340
Suppliers in Market	Amount Sold	% Total Market Share
Supplier 1	1860	50.3%
Supplier 2	1340	36.2%
Supplier 3	500	13.5%
Total	3700	100.0%
End of Period
Customers in Market	Amt Purch from all Suppliers	Primary Supplier	Primary Supplier % of Cust Purch	Units of Sale by Primary Supp	Secondary Supplier	Secondary Supp % of Cust Purch	Units of Sale by Secondary Supp
Customer A	2000	Supplier 1	60%	1200	Supplier 2	40%	800
Customer B	1200	Supplier 1	80%	960	Supplier 2	20%	240
Customer C	1000	Supplier 2	50%	500	Supplier 3	50%	500
Customer D	0	None	0%	0	None	0%	0
Total	4200			2660			1540
Suppliers in Market	Amount Sold	% Total Market Share
Supplier 1	2160	51.4%
Supplier 2	1540	36.7%
Supplier 3	500	11.9%
Total	4200	100.0%
*Summary of Changes During Period*
Supplier	Change in Unit Sales Volume	% Volume Change from Beginning to End	Net Unit Volatility in Volume Change	Volatility as % of Unit Sales Volume Change	Customer Growth in Volume Change	Customer Growth as % of Unit Sales Volume Change
Supplier 1	300	16.1%	0	0%	300	100%
Supplier 2	200	14.9%	0	0%	200	100%
Supplier 3	0	0.0%	0	0%	0	0%
Total	500	13.5%	0	0%	500	100%

Explanation: In this example, Customer A increases its total purchases from 1500 in the Beginning Period to 2000 at the End of Period. No customer changed its purchase allocations to suppliers. The market grows from 3700 units total sales to 4200 units total sales. Both Supplier 1 and Supplier 2 had sales growth during the period, as did the total market.