2. - Most of the sales force adopt the ‘standard’ that 13/13.1 is the
conversion rate for all SKUs, without having an understanding of the ‘how’
& ‘why’
WHAT YOU HAVE TO UNDERSTAND
- There are different SKUs, so are the conversion rates different
- These are not just fixed, they are derived
- A clear understanding of how it is derived will help align your figures and
enlighten the sales force at large
7. EXAMPLES
(1) How many crates of Fes M are there in a hectolitre?
Working
SKU size=45cl
converting from cl to L; 45/100= 0.45L (100cl makes 1L)
No. of bottles in 1 crate= 18
Therefore total Litres in 1 crate= 0.45*18=8.1 L
Recall that 1HL=100L
(Now the idea here is how many 8.1L are contained in 100L?)
= 100L/8.1L
=12.345679
=12.35 (approx)
8. (2) How many cases of MG are in 1 HL?
Working
SKU size=33cl
converting from cl to L; 33/100= 0.33L (100cl makes 1L)
No. of bottles in 1 crate= 24
Therefore total Litres in 1 crate= 0.33*24=7.92 L
Recall that 1HL=100L
(Now the idea here is how many 7.92L are contained in 100L?)
= 100L/7.92L
=12.626262
=12.63 (approx)
9. (3) What is 750hls of Fes s in crates?
Working
Conversion rate of SKU=12.82
Thus, 750hls to crates= 750*12.82
=9615 crates
(as opposed to 750*13.1=9825)