# How To Calculate The Seasonality Factor

## Video: How To Calculate The Seasonality Factor

Seasonality coefficient is a value that is taken into account in trading. It allows you to determine the seasonal fluctuations in the rate of sale of a particular product. This allows us to organize its delivery on time and not overstock the warehouse. Calculation and accounting of the seasonality coefficient will optimize the work of a trading enterprise

## Instructions

### Step 1

Think over the periods for calculating the coefficient. For a grocery store as a whole for the whole year, the monthly volume of sales may remain practically unchanged, but if you keep records by week, you will understand that on Saturday and Sunday these volumes are much higher than on weekdays. Accordingly, you will need to organize the delivery of perishable food in a larger volume by the weekend. In stores selling building materials, the seasonality of sales is expressed in their noticeable increase in the warm season, so the calculation can be done monthly, depending on the month of the calendar year.

### Step 2

Keep sales statistics for each type of product. For a reliable result, you must have data for at least two to three years (in the case of a grocery store, several weeks). This will allow you to ignore random factors in your calculations and increase their reliability. Break down all the products that are sold in your store into categories. Select a unit of measure. It is better not to use money in this capacity - you will constantly have to take into account the inflation rate of Rosstat, and it does not always coincide with real indicators. Keep records in volumes, kilograms, boxes.

### Step 3

Use monthly sales data for the last three years. To determine the average monthly sales of goods of a certain category, add up their indicators for the year and divide by the number of months in the year - 12. Divide the sales by the average to get the seasonality coefficient for the given month of the analyzed year. Likewise, calculate the seasonality rates for each month over several years, add them up, and divide by the number of years in your analysis. You will get the average seasonality rate. The accuracy of its determination will be the higher, the more years have been analyzed.