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Retail & Allocation lesson

Price and variance

Variance turns % of target into dollars. ASP shows the typical price of an item sold.

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About 5–10 minutes · no sign-up needed

The idea

Variance turns % of target into dollars. ASP shows the typical price of an item sold:

Formulas

Sales − Target
Sales ÷ Units

Key points

Variance $Sales − Target. Negative means short of target.
ASPAverage selling price: Sales ÷ Units sold.
ATV = ASP × UPTBigger baskets come from pricier items, more items, or both.

Report variance in dollars and in %: "$3,000 short, 80% of target" tells the whole story.

Practice

Try each one in your head first, then open the answer.

1. What is Calgary's variance to target, in dollars?
$8,000 − $10,000 = −$2,000
2. In D2, work out Toronto's variance to target: sales − target.
=B2-C2
3. What is Halifax's average selling price?
$6,000 ÷ 800 = $7.50
4. Tap the store selling the cheapest items on average.
Montreal's ASP is $5, the lowest in the chain.

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed