Understanding Rate of Sale (ROS) in Ramsys

What is Rate of Sale?

Rate of Sale, often called ROS, is a simple but powerful measure that shows how quickly a product is selling in your store. It tells you the average quantity of an item sold per month over a recent period of time.

For example, if your Rate of Sale for coffee beans is 20 bags per month, it means on average, you sell about 20 bags each month.

Why is Rate of Sale Important?

Knowing your Rate of Sale helps you make smarter decisions about:

  • Stock Levels: Avoid running out of popular items or holding too much of slow-moving products.
  • Ordering: Helps decide how much to reorder and when, so your shelves are always stocked but not overloaded.
  • Promotions: Identify products that may need a sales push or special offers.
  • Cash Flow: Better inventory management keeps your money tied up in stock at a healthy, manageable level.

Simply put, Rate of Sale is your guide to balancing supply and demand smoothly.

How Does Ramsys Calculate Rate of Sale?

Ramsys calculates Rate of Sale by looking at your recent sales history and finding the average monthly sales for each item.

Here’s how it works in simple terms:

  1. Look Back Over Time: Ramsys reviews your sales records for each item over the past 13 months (just over a year). This period helps to capture seasonal trends and recent buying patterns.
  2. Use the First Sale Date: If an item started selling less than 13 months ago, Ramsys begins counting from the first sale date for that item to ensure the average is accurate.
  3. Calculate Monthly Sales: Ramsys adds up all sales quantities in this period and divides by the number of months in the time frame. This gives the average number of units sold per month.
  4. Update Automatically: Every time you check, Ramsys recalculates the Rate of Sale using your most up-to-date sales data.
  • If an item has a high Rate of Sale, it sells quickly — consider ordering more frequently and keeping more stock on hand.
  • If an item has a low Rate of Sale, it moves slowly — you might want to reduce stock levels or run a promotion to clear inventory.
  • For new items, Ramsys uses the available sales history so you get a realistic average even if it’s less than 13 months.

In Summary

Rate of Sale is your inventory’s speedometer. It helps you understand what’s selling fast, what’s slow, and how to manage stock efficiently. Ramsys takes the hassle out of this calculation by doing it for you automatically — giving you clear numbers you can trust to make better business decisions.

If you want to learn more about how to use Rate of Sale in ordering and inventory planning, check this topic: Using Rate of Sale for Smarter Stock Management.