DealersEdge Professional Forums

I am just wondering what criteria you use when you post a lost sale? Example - If I don't have a part on the shelf and I am told to order it (most parts I get next day) - I do not post it as
a lost sale. Is this correct? I know there are many theories on what a lost sale is.
I am just looking for feedback on how to track and post my lost sales. Wondering what everyone else is doing?

That will be debated until the end of time.
My opinion is: Only post a lost sales "if you lose the sale"
If you special order it, or buy it from another dealer, or another source, and sell it, you haven't lost the sale.
You just didn't have it on the shelf.
If you post a lost sale, then order it or buy it and then sell it, you have just posted 2 sales on 1 transaction.
You have just doubled the demand in your DMS.

RLWOLF

RLWOLF wrote:That will be debated until the end of time.
My opinion is: Only post a lost sales "if you lose the sale"
If you special order it, or buy it from another dealer, or another source, and sell it, you haven't lost the sale.
You just didn't have it on the shelf.
If you post a lost sale, then order it or buy it and then sell it, you have just posted 2 sales on 1 transaction.
You have just doubled the demand in your DMS.

RLWOLF

This is how I've handled lost sales for many years.

The responses are correct. If you have a demand for a part (in stock or not) whether the problem was availability or the cost of the part and the customer leaves, or hangs up the phone, you had a lost sales. Posting of lost sales is one of the primary pieces of critical information upon which any calculation for stocking, or for determining stocking levels are made. Some of the DMS systems apply a full 'count' value on the lost sales; others apply a fraction of the 'count' of the lost sale. In any event, if the lost sale is not posted the system has no way of determining if 'perhaps' the demand is increasing on a part and therefore will never stock the part. As an addition, if you have a lost sale for a part that is not in stock, nor in the DMS, enter the part number in the DMS as a testing "NS" part and post the lost sale. The action of creating the NS record does not record any sales activities; these must be posted following the creation of the NS record.

RLWOLF wrote:That will be debated until the end of time.
My opinion is: Only post a lost sales "if you lose the sale"
If you special order it, or buy it from another dealer, or another source, and sell it, you haven't lost the sale.
You just didn't have it on the shelf.
If you post a lost sale, then order it or buy it and then sell it, you have just posted 2 sales on 1 transaction.
You have just doubled the demand in your DMS.

I totally agree.
I had it turned off on our system (ADP/CDK). It has since been turned back on.
One reason: It seemed like if someone does a lost sale, RIM immediately is wanting me to stock it the next day.
I tell our people if they have a number they think we should stock or stock more of, tell me so I can check it out.

Mike Nicholes, could you please elaborate a bit on the reasoning behind recording a lost sale if I stock the part, and the customer chooses to purchase a less expensive version from an aftermarket source? Do I need to create demand for an item I stock, in order to possibly raise the stocking level? I don't follow this practice, but may need to, I guess. Thank you for your direction.

Denise Trimble wrote:Mike Nicholes, could you please elaborate a bit on the reasoning behind recording a lost sale if I stock the part, and the customer chooses to purchase a less expensive version from an aftermarket source? Do I need to create demand for an item I stock, in order to possibly raise the stocking level? I don't follow this practice, but may need to, I guess. Thank you for your direction.

Search the old posts about lost sales I posted a 2 page explanation of lost sales and demand sales.
You would post that as a lost sale because you had an opportunity to sell the part but you lost the sale.

PartsPlant81 wrote:

Denise Trimble wrote:Mike Nicholes, could you please elaborate a bit on the reasoning behind recording a lost sale if I stock the part, and the customer chooses to purchase a less expensive version from an aftermarket source? Do I need to create demand for an item I stock, in order to possibly raise the stocking level? I don't follow this practice, but may need to, I guess. Thank you for your direction.

Search the old posts about lost sales I posted a 2 page explanation of lost sales and demand sales.
You would post that as a lost sale because you had an opportunity to sell the part but you lost the sale.

I hope someone finds this post because I cannot.

I think I found it. Its called "outside purchas aconting"