The projection of past sales method of sales forecasting takes a variety to forms. The simplest is to set the sales forecast for the coming year at the same figure as the current year\u2019s actual sales, or the forecast may be made by adding a set percentage to last year\u2019s sales, or to a moving average of the sales figure for several past years. For instance, if it is assumed that there will be the same percentage sales increase next year as this year, the fore-caster might utilize a na\u00efve model projection such as<\/p>\n\n\n\n
Next year\u2019s sales = this year\u2019s sales x this year\u2019s sales<\/p>\n\n\n\n
last year\u2019s sales<\/p>\n\n\n\n
This year\u2019s sales are inevitably related to last year\u2019s. Similarly, next year\u2019s sales are related to this year\u2019s and to those of all preceding years.<\/p>\n\n\n\n
Projecting present sales levels is a simple and inexpensive forecasting method and may be appropriate for companies in more or less stable or \u201cmature\u201d industries \u2014 it is rare in such industries for a company\u2019s sales to vary more than 15 percent plus or minus from the preceding year.<\/p>\n","protected":false},"excerpt":{"rendered":"
The projection of past sales method of sales forecasting takes a variety to forms. The simplest is to set the sales forecast for the coming year at the same figure as the current year\u2019s actual sales, or the forecast may be made by adding a set percentage to last year\u2019s sales, or to a moving…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-105530","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\n