While losses are as much a part of one’s business life as are profits, a successful entrepreneur is one who accepts losses, probes into the reasons behind them and seeks ways to turn things around. Lost sales analysis is a procedure by which one can perform an in-depth assessment of the reasons that hindered potential customers from availing the products or services of one’s company.

Sample Lost Sales Analysis

Lost sales analysis conducted by: Sula Parkinson

Date of submission of analysis: June 8, 2012

Company whose lost sales have been analyzed: Fiona Apparels Private Limited.


Products in question: The recently launched summer collection.

Lost Sales Detection: The newly introduced summer collection failed to make a mark in the market, causing the monthly sales of the company to dip by 30%. Statistics of lost sales reveal that the company has lost nearly 25% of its customers over the latest collection.

Customer complaints detected: A look into the recently lodged series of customer complaints voicing the customers’ displeasure over the bought products sheds light on some of the factors that are instrumental behind the loss of sales:

  • Plagiarized designs.
  • Poorly fit garments.
  • Usage of poor quality raw materials.

Factors influencing loss of sales:

  • Poor designs that failed to attract customers.
  • Unreasonable price tags.
  • Failure to connect with the prevalent summer mood.
  • Unable to beat the better quality collections launched by competitors.

Suggestions for improvement:

  • Clothes design must be original and practical.
  • Quality must, in no circumstances, be compromised.
  • Clothes must be designed in a way that it caters to the needs of the target customers.

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