The average check is the amount equal to the total volume of purchases made for a certain period of time divided by the total number of purchases during this time

How to calculate the average check

Both a successful and a failing business requires careful analysis and calculation of key indicators. You need to know why things are going one way or another, what the change in certain moments can lead to, what to expect in the future or what you need to do to get the desired results. One of the parameters to be considered to get reasonable answers to all these questions is the average check. This is a simple parameter, but it is also extremely important, because it can be used in many other calculations and food for thought about many aspects of the company’s work.

What is the average check

The average check is the amount equal to the total volume of purchases made for a certain period of time divided by the total number of purchases during this time. Thus, it is not just all the purchases and orders, and the average — between all the orders that made each buyer during one visit to the store or, for example, treatment in the company for the order of services. Why is the calculation of the average check so important? Because he talks about a lot. If you evaluate the dynamics of changes in the average check, you can draw conclusions about how the various changes that were carried out earlier worked: assortment policy, pricing policy, advertising, marketing activities, merchandising — all this can be reflected in the size of the average check. In addition, the average check can be viewed in the context of each individual employee to determine its effectiveness or to find out whether it made sense to conduct training activities, etc.

As a result, the formula for calculating the average check is as follows:

Average check = revenue / number of checks