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.
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
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