Finding your 20 best-selling items

Even if your shop carries hundreds of different products, most of your takings usually come from a few dozen of them. The share differs from shop to shop: sometimes 20 products bring half the takings, sometimes more. What matters is to know that "core" exactly, because when those items run out the shop loses the most money. You do not need complicated software to find it, just a few hours with a spreadsheet.

Why exactly 20? The number is arbitrary: 15 in a small shop, 30 in a bigger one. The aim is not to analyse the whole range but to pick out the small group that brings in money every day. In your shop that group is small enough to keep under control and large enough to change the result noticeably.

Where to get the data

You need sales data for the last one to three months. Sources can be:

• the daily or monthly report from the cash register;
• a sales notebook or sheet;
• order history from Telegram or a marketplace;
• supplier invoices, if there are no sales records (a rough method: what you bought most was probably sold most).

The longer the period, the less random swings matter. For seasonal goods (winter clothing, summer drinks), though, choose the period to fit the season.

How to calculate

1. In an Excel sheet, write two columns for each item: quantity sold and takings (quantity × selling price). If you can, add a profit column too.
2. If an item appears more than once, combine the lines (Excel has a pivot table or the SUMIF function for this).
3. Sort the list by takings, largest first.
4. Mark the first 20 lines and work out their share: takings of those items ÷ total takings × 100.
5. Sort the same list by profit and compare the two lists.

Suppose a shop carries 150 products and its monthly takings are 60,000,000 so'm. After sorting, the first 20 products brought in 33,000,000 so'm. Their share is 33 ÷ 60 × 100 = 55%. In other words, just 13% of the range brings in more than half the money. In your shop the figure may come out differently, which is why you should calculate it rather than guess.

What to do once you have the list

Set separate rules for your fastest sellers:

• set a minimum stock for each and reorder before it runs out;
• put them in the most convenient, visible place on the shelf;
• count exactly these 20 items every week (a 15-minute job);
• agree with the supplier on an extra batch held in reserve;
• watch price changes on these items first.

All these rules rest on one idea: your most needed item must never run out. A shortage not only loses you that item's profit but also sends the customer to another shop, and the rest of their basket goes with them.

When to update the list

The top 20 is not permanent. Seasons change, prices change, new products appear. Update the list once a month: add fresh sales data, repeat the sorting and see who dropped out and who came in. Sometimes this turns up a surprise: a product you have long thought of as your main one has actually slipped to fifth place.

The most common mistakes

• Only the number of units is considered, not takings.
• Conclusions are drawn from a short period (one week) and a chance sale turns out to be the "leader".
• The list is made once and not updated for years.
• Even when an item on the list runs out, people wait and put off the order.

Conclusion

The top 20 is simple but powerful information, not about the whole shop but about its most important part. Once you know it, you understand where to focus, when to order and which item you cannot afford to lose sight of. If your sales data is in disorder and the list cannot be drawn up reliably, AniqHisob can help through stock counts and tidying your records.