Velocity is the measure of sales per distribution point. For an item, a distribution point represents the item selling in 1% of the market. For an item with a velocity of $1, if that item was sold in the entire market (100%), sales would be $100. Velocity allows you to compare your performance to bigger brands who already have a much greater distribution. Use this measure to tell retailers how you will perform with an increase in distribution.
Velocity is the measure of sales per distribution point. Use this measure to tell retailers how you will perform with an increase in distribution.
Dollars per TDP (velocity)
$/TDP (sales per distribution point, also known as velocity) measures the sales per point of distribution for a given product.
Distribution is made up of all the SKUs your brand offers multiplied by each store selling.
Total distribution points (TDP)
TDP looks at how many stores a particular item is in and the sales of those stores to identify the reach of the item.