Run Rate

Run rate is the annualized (or month-end projected) revenue or volume figure derived by extrapolating a shorter period of actual sales. If a distributor has billed Rs 12 lakh in secondary sales in the first 10 days of the month, the monthly run rate is Rs 36 lakh (assuming 30 billing days). Sales managers in Indian FMCG live and die by run rate — it is the early-warning system that tells them whether the month's target is achievable or requires intervention.

Run rate is most useful when tracked daily and compared against the month's target line. A run rate consistently below target in the first week triggers corrective actions: activating trade schemes, pushing slow-moving SKUs, or deploying additional van sales routes. Conversely, a run rate above target may signal an opportunity to stretch the goal or divert attention to weaker territories.

Modern sales analytics dashboards show run rate as a live metric, updating with every invoice. This replaces the old practice of area sales managers calling distributors on the 10th and 20th of each month to ask "kitna hua?" (how much is done) and manually extrapolating in their heads.