The Ultimate Guide to Velocity (Part 2)
What You Need to Know About this Important Consumer Goods Metric
This is Part 2 in my guide to velocity. If you haven’t read Part 1 you can find it here. My goal with this series is to give you close to everything you need to know about this north star CPG metric. In this installment I’ll explain:
How to calculate velocity (including the different types)
How time becomes important when using velocity
Let’s dig in!
How to Calculate Velocity
Velocity is pretty straightforward. It always involves taking a sales number and dividing it by store count and the number of weeks. In fact the formula is in the name. I'll walk you through the different velocity flavors to show you what I mean.