1. What is Sales Per Hour?

Sales Per Hour (SPH) is a key performance metric that measures the amount of sales revenue generated per hour of work. It's commonly used in retail, service industries, and sales environments to evaluate efficiency and productivity.

2. How Does the Calculator Work?

The calculator uses the SPH formula:

Where:

• \( Sales \) — Total sales revenue in dollars
• \( Hours \) — Total hours worked

Explanation: This simple division calculates how much revenue is generated for each hour of work, providing a clear measure of sales efficiency.

3. Importance of SPH Calculation

Details: SPH is crucial for businesses to assess sales team performance, optimize staffing levels, identify training needs, and make informed decisions about operational efficiency and profitability.

4. Using the Calculator

Tips: Enter total sales in dollars and total hours worked. Both values must be valid (sales ≥ 0, hours > 0).

5. Frequently Asked Questions (FAQ)

Q1: What is a good SPH value?
A: This varies significantly by industry, product type, and market conditions. Compare against industry benchmarks or your historical performance.

Q2: Should I include non-selling hours in the calculation?
A: It depends on your purpose. For pure sales efficiency, use only selling hours. For overall productivity, include all work hours.

Q3: How often should SPH be calculated?
A: Regular monitoring (daily, weekly, monthly) helps track performance trends and identify issues early.

Q4: Can SPH be used for individual employees?
A: Yes, SPH is valuable for evaluating individual performance, but consider other factors like customer service quality and product knowledge.

Q5: How can I improve SPH?
A: Focus on sales training, product knowledge, efficient processes, customer service, and effective time management.