You know how it is,
the media is constantly reminding us that things are pretty bleak, right? You cant turn on the TV or pick up your newspaper without hearing about the world economic crisis, Property Prices stagnating, You cant borrow any money, Energy Prices going up , Cuts in government spending, Job losses etc. etc, they paint a pretty black picture.
Not only is it essential as a Business Owner that you put up your Star Trek style shields to deflect this negativity – it’s also worth remembering that outside causes, economic or otherwise, are NOT going to determine what happens for you this year.
Sure the economy etc is a factor, but there’s only one KEY factor that will decide whether its a struggle or a joy for you – and that’s YOU.
In the context of business, it’s your willingness and ability to be smarter than the rest, smarter than the moaning people and intelligently use whatever the world offers you.
So, what can we do to affect our success? Well here’s one idea….
Boosting your Average Sale Value
AVERAGE SALE VALUE?? What’s all that about then?
Well some customers might spend 500 (insert the currency of your choice), while others 23.50 – the average sale value is just that: the AVERAGE spend from everyone who does business with you. All you need to do is divide what’s in the till with the number of transactions you’ve made. Get it? (by the way, this is true for all types of business, not just those that have tills!)
I know you’ll tell me that your products or services have such varied prices that this number wont be realistic for you, (in fact somebody said that to me just today), but can you have an Average Sale Value for each line or type of product of service you sell?, of course you can.
Just like the staff at those fast food restaurants (you know the ones I mean), who always ask “Would you like fries with that?”, its a good idea to look for ways of increasing your average sale. Even though most people say NO to the fries, think of the millions of extra revenue they make a day from those that do say YES. Now consider how a similar strategy could unlock another goldmine for you.
So what are the “fries with that” products or services in your business?
The key is remembering that it only takes slight improvements to make a drastic difference to your profitability. These customers are already doing business with you and any little extra you can add on is all cream.
There are subtle and not so subtle ways of doing it. Here are a few simple ideas…..
Up Sell …
This can be done when you have a basic and deluxe version of a particular product, (if you dont have this, think of a way that you could). It works by selling your customer a more expensive version of the product they’re looking at, based on its benefits. When up selling it’s important to explain how the more expensive model will better suit their long term needs.
Cross or Add On Sell …
A technique that is successfully used by many large companies (see above). It can be very effective when selling products or services that are used in conjunction with others. A good example of this would be selling your customers a watering system when they buy a quantity of lawn seed. Or try buying a suit without the sales assistant offering you to try a vast array of ties. You can also cross sell associated products or services on a commission basis with another company.
Down Sell …
Show them the highest priced item first, then the one that’s just a little more expensive than they’d planned seems extremely cheap.
This can be really effective when your customer can’t afford a more expensive item. Rather than attempting to only sell them a higher priced item, and as a result losing the sale altogether, you simply sell them a similar product that fits just above their budget.
So get your thinking cap on, what could you do to increase your average sale value, starting today? (knowing it, is a good starting point. I find that most businesses don’t) Employing strategies to boost your Average Sale Value is an effective way of increasing your revenue & profits, but then you probably just worked that out for yourself, right?