"Average product price per unit," which is a KPI that constitutes the average customer price per unit that directly affects the increase or decrease in sales will be explained.
What is the Average Price per Item?
The unit price per product represents the "unit price per item purchased”.
The average unit price is calculated by summing up the unit prices of multiple products and dividing by the total number of sales.
Sometimes Unit Price is also referred to as Item Price.
The average product unit price is composed of the following two KPIs
(1) Total product unit price sold (= total product unit price)
(2) Total number of products sold (= number of items sold)
The average unit price per product is measured in numerical value because it is an indicator of "the average unit price of purchased products.”
The average product price per purchase is a KPI that affects the "average customer price per purchase" in the same way as the average number of items purchased.
If the average product price per purchase increases, the average number of items purchased will increase, and if the average number of items purchased remains the same, the average spend per customer will increase.
On the other hand, if the average product price per purchase decreases, the average customer price per purchase may decrease even if the average number of items purchased increases.
Thus, average product price per unit has a close relationship with average customer price per unit, which is a component of sales.
A deeper understanding of the indicators that affect the average product price per purchase and data are needed to understand the current status of the store.
