Sales Volume - Definition & Meaning
What is Sales Volume?
Sales volume indicate the quantity of different stock keeping units (SKUs) sold or the number of customers who have sought for the services offered by a firm in a given time period such a year or a fiscal quarter. Sales volume measurement is a vital part of the performance evaluation of the sales force who are responsible for selling the products of the firm.
Generally, Sales representatives are incentivised on the basis of their ability to meet their target. Since, a major part of the variable pay component depends on achieving the target, sales volume is an important metric in sales and marketing.
Increased sales volume helps company to acquire a healthy topline (revenue). Increased quantity sales mean increased production hence that also helps in increased contribution margin. Moreover, increased sales volume helps to reach break-even earlier which helps the company gain profits from their operation as early as possible.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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