Tips for Increasing Your Average Sale

By Russell Bowyer

Tips for Increasing Your Average Sale.

I have listed here 5 Tips For Increasing Your Average Sale, but instead of reading this blog post, you can watch the video instead, thank you.

Walk in to any McDonalds…

  • If you order a meal at McDonalds you are normally asked ‘do you want to go large with that?’
  • If a even a small percentage of their 68 million customers said yes, this would add millions to their bottom line
  • Boost your average sale value and you boost your cash flow and you increase your profits, by increasing your average sale value.

Here are my 5 tips for increasing your average sale…

Tip Number 1…

  • Begin by working out your average sale value, or as I call it your average transaction value.
  • If 30 customers spent a total of £1,200 with you, then your average sale would be £40 – i.e. divide £1,200 by 30 = £40.
  • Once you have this number you can set a new target and then begin to work out a strategy to hit it.
5 tips for increasing your average sale value

Grow your business

Tip Number 2…

  • Bundle up your products.
  • Using the McDonalds example again, they have extra value meals to include fries and a drink with your meal – by doing this they automatically increase their average sale value. Plus the customer gets a discount for the meal they buy.
  • If you charge by the hour, think about ‘Productizing’ your service – this takes away the problem of your customers worrying about any inefficiencies within your business.
  • A motor repair shop could offer a free clean with every service.
  • I’m sure you should be able to think of ideas for your business – so get creative.

Tip Number 3…

  • Go for the add on sale.
  • In McDonalds they will ask ‘Do you want fries with that?’ For all those customers that say yes, their average transaction value is increased and their bottom line is improved.
  • If you have a website – list related products.
  • Amazon list books also read – those that a interested in these recommended books will likely buy at the point of sale and thereby increase the average transaction value for Amazon.
  • If you have a restaurant ask if your customer wants a salad or garlic bread.

Tip Number 4…

  • Introduce higher value products.
  • If you are a bakery and sell mainly bread and sandwiches, consider selling wedding cakes or Christmas cakes.
  • Get your sales team to push your higher value items.
  • Toyota introduced the Lexus – this increased their sales value.

Tip Number 5…

  • Raise your prices.
  • Just because you are more expensive does not mean you will not get the business – people buy BMWs and Mercedes.
  • An example if you Gross Profit Margin is 50% and you increased your prices by 10% you could lose 16.7% of you customers and be no worse off!

What to do next…

  • Work out what your average sale is.
  • Go and get creative with how to increase your average sale.
  • Implement your ideas
  • Grow your profits
  • Let me know how you get on…

You could take a look at our Increase Profit Software by clicking HERE

As always thank you for taking the time to read my blog and if you like what you’ve read, please share it with others.