Leverage Equation

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Sales and Metrics Projections Based on Leverage Goal

Traffic Trend

Leverage Goal

Comp Projection

LY Sales

Comp Projection

Sales Projection

LY Traffic

Traffic Trend

Traffic Projection

Traffic Projection

Conversion Goal

Transaction Projection

Sales Projection

Transaction Projection

DPT Goal


Traffic Trend: 5%

Leverage Goal: 5% (500 basis points)

Comp Projection: 5% + 5% = 10% (this is your increase to LY you have to achieve to hit a 500 leverage)


LY Sales: $50,073

Comp Projection: 10% (1.1)

Sales Projection: 1.1 X 50,073 = $55,080 (to get the sales projection, multiply LY by 1+ the comp projection percent, i.e. 1.1 for 10%)


LY Traffic: 4408 footsteps

Traffic Trend: 5% (0.05)

Traffic Projection: 4408 X 1.05 = 4628 (to get the traffic projection multiply LY traffic by 1+ the traffic trend percent, i.e. 0.05 for 5%)


Traffic Projection: 4628

Conversion Goal: 20% (0.2) (determine your conversion goal as a team during your business review each week)

Transaction Projection: 4628 X 0.2 = 926 (multiply your traffic projection, which is your total number of footsteps, by your conversion percent to get your projected number of transactions)


Sales Projection: $55,080

Transaction Projection: 926

DPT Goal: $55,080 / 926 = $59.48 (To determine your DPT goal you divide your projection by the number of transactions you’re projecting. If these goal seems too high or too low, work the equation again by lowering or increasing your conversion goal)


Sales and Metrics Projections Based on 500bps Leverage Goal

Traffic Trend

Leverage Goal

Comp Projection

+5% to LY

5% (500bps)

+10% to LY

LY Sales

Comp Projection

Sales Projection

$50,000

+10% (1.1)

$55,000

LY Traffic

Traffic Trend

Traffic Projection

4500 footsteps

+5% to LY (1.05)

4725 footsteps

Traffic Projection

Conversion Goal

Transaction Projection

4725 footsteps

20% (0.2)

945 transactions

Sales Projection

Transaction Projection

DPT Goal

$55,000

945 transactions

$58.20


Sales and Metrics Projections Based on 1500bps Leverage Goal (Increase in DPT) Traffic Trend

Leverage Goal

Comp Projection

+5% to LY

15% (1500bps)

+20% to LY

LY Sales

Comp Projection

Sales Projection

$50,000

+20% (1.2)

$60,000

LY Traffic

Traffic Trend

Traffic Projection

4500 footsteps

+5% to LY (1.05)

4725 footsteps

Traffic Projection

Conversion Goal

Transaction Projection

4725 footsteps

20% (0.2)

945 transactions

Sales Projection

Transaction Projection

DPT Goal

$60,000

945 transactions

$63.49


Sales and Metrics Projections Based on 1500bps Leverage Goal (Increase in Conversion) Traffic Trend

Leverage Goal

Comp Projection

+5% to LY

15% (1500bps)

+20% to LY

LY Sales

Comp Projection

Sales Projection

$50,000

+20% (1.2)

$60,000

LY Traffic

Traffic Trend

Traffic Projection

4500 footsteps

+5% to LY (1.05)

4725 footsteps

Traffic Projection

Conversion Goal

Transaction Projection

4725 footsteps

22% (0.2)

1040 transactions

Sales Projection

Transaction Projection

DPT Goal

$60,000

1040 transactions

$57.69


Sales and Metrics Projections Based on Leverage Goal

Traffic Trend

Leverage Goal

Comp Projection

LY Sales

Comp Projection

Sales Projection

LY Traffic

Traffic Trend

Traffic Projection

Traffic Projection

Conversion Goal

Transaction Projection

Sales Projection

Transaction Projection

DPT Goal


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