What is the formula used to calculate Sales per Point of Weighted Distribution (SPWD)?

Sales per Point of Weighted Distribution (SPWD) is a standard velocity metric in category management used to measure a product's sales productivity, normalized for its distribution level. The formula calculates how many sales (in dollars or units) are generated for each percentage point of All-Commodity Volume (ACV) weighted distribution. It is correctly calculated by dividing the product's total sales by its ACV weighted distribution percentage.

B. Multiplying sales by distribution would result in a meaningless, inflated number that does not represent a sales rate or velocity.

C. This inverts the formula, calculating distribution points per unit of sales, which is not a standard or meaningful velocity metric.

D. Subtracting these two different units of measure (dollars/units and a percentage) is mathematically and conceptually invalid.

1. Farris, P. W., Bendle, N. T., Pfeifer, P. E., & Reibstein, D. J. (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (2nd ed.). Pearson Education. Chapter 7, "Marketing Metrics in Retailing," pp. 189-191, defines and explains the calculation of sales velocity metrics like SPWD.

2. NielsenIQ. (2021). Analytics & Measurement Glossary. The official glossary defines Sales Rate or Velocity metrics (of which SPWD is a key example) as Sales Volume divided by a measure of distribution, such as % ACV Distribution.