What is the sell-out

The Sell out is a unit of measurement that concerns the sales made directly by retailers or retailers to the final buyers.

It is measured over a defined period and is expressed both in value and in volume.

Furthermore, sales are measured based on the amount of merchandise sold.

This type of measure is connected to sell in and allows evaluating the sales performance of commercial intermediaries.

Sell out strategies

The sell out is implemented to stimulate the demand for products to final consumers and to ensure the cooperation of distribution companies, namely the GDO.

This is achieved through sales promotion activities by making an agreement between manufacturer and distributor.

This strategy is implemented to influence consumer behavior when they need to make a product choice and the timing of making a purchase.

Companies use sell out to achieve their own business objectives based on the model concerned:

• Trial: encourages product testing among potential consumers;
• Repeat: encourages the purchase of one product over another;
• Loyalty: promotes brand loyalty.

Depending on the chosen goal, various sell out strategies can be implemented to ensure product penetration towards end consumers.

Difference between sell out and sell in

As we have already said, sell out provides data related to the goods leaving the stores.

Sell in, on the other hand, are sales activities that the producer of goods or services carries out towards a commercial intermediary, namely the wholesaler, the distributor or the dealer.

When there is an activity of sell in, there is no direct relationship between producer and consumer, which allows the dealer to achieve rapid distribution of products thanks to the presence of their sales outlets in the territory.

The measurement of sell in can be expressed in euros or in volume, that is, in quantity of goods sold.

To measure sell in means to objectively evaluate the commercial strategy implemented.