What is Average Bill Value?
Average bill value is total sales for a period divided by the number of bills, showing how much a customer spends per visit on average.
Updated
Meaning
English
Average bill value is total sales for a period divided by the number of bills, showing how much a customer spends per visit on average.
Roman Urdu
Average bill value kisi muddat ki kul sale ko bills ki tadaad se taqseem karne par milti hai; yeh batati hai ke ek gahak aam taur par kitna kharch karta hai.
Also called average transaction value, ATV, basket size, average order value, AOV.
Example
A pharmacy sold 1,240,000 rupees in a month across 2,480 bills, an average of 500 rupees a bill. After adding vitamins near the counter, the average rose to 540 rupees.
How it works
Sales grow in only two ways: more bills or bigger bills. Average bill value (also called average transaction value or basket size) shows the second. It is a useful daily number because it moves with things the shop controls: what sits near the counter, whether staff suggest the larger pack, and whether combos make sense.
Compare it by day of week, by branch and by cashier. A branch with many bills but a low average may be busy but under-selling. Be careful with discounts: pushing the average up with deep offers can lower profit even as sales rise, so look at it alongside gross margin.
In Nafaa
The Nafaa reports centre and dashboards show bills and sales for any period, and the profit report compares periods, so the average per bill can be followed against margin over time.
Related terms
- Combo Deal
A combo deal is a set of products sold together at one price, usually lower than buying each item separately.
- Gross Margin
Gross margin is gross profit shown as a percentage of the selling price: (selling price minus cost) divided by selling price.
- Loyalty Points
Loyalty points are credits a customer earns on purchases and can later redeem for a discount or a gift, to encourage repeat visits.