Selling Costs to Sales Ratio

Measure the relationship between selling costs and the end value of the sale.

Sales KPI Examples | Selling Costs to Sales Ratio

Overview

Selling costs typically include the amount of money was invested into its development, marketing, and distribution. This metric informs your team as to how much actual revenue is gain, with the additional information of how much of the final sales value goes back in to cover the cost the company took on to make the sale.

Formula

Cost of selling/Total value of sales

Reporting frequency

Monthly

Example of KPI target

8% of value

Audience

CFO, Sales Manager

Variations

Selling costs to sales value

Marketing expense to sales ratio