Seasonal Variation — How To Calculate

Leo grabbed a clean napkin and a pen. "You need to calculate seasonal variation. It’s how you separate the 'normal rhythm' of your business from the 'random noise' of life. It takes four steps. Let's use your sales data."

"Finally," Leo said, "multiply that 'average season' by each Seasonal Index." how to calculate seasonal variation

She implemented the system. The following summer, she ordered 80 gallons of chocolate fudge instead of 40, and she didn't run out once. In winter, she launched a small hot cocoa and cookie menu (index 0.34 meant low volume, so she kept it simple). She stopped wasting money on full staff in January. Leo grabbed a clean napkin and a pen