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7 Critical Tips for Increasing Your Average Sale
The best in corporate
America have perfected upselling as a key factor in
their sales strategy. They fully understand the value to
their business, as well as, to their customers.
The
same sales strategy is important for your business.
As you build your customer base, you need to realize
as many dollars as possible from each customer
given a set of needs - now and on-going.
Boost the dollar value of your average sale, and you
boost your cash flow and bottom line. Here's how you
can increase your average sale.
- Crunch the Numbers. Begin by figuring
the
dollar value of your average sale for a day, month or
year. If you gain 10
customers and total sales of $4,000 on a typical day,
your average sale is $400. Then, you can set a new
target and plot your strategy to achieve or exceed it.
- Bundle Your Offerings. Encourage
customers to
spend more by offering multiple products or services.
You can also bundle
your time. An IT services company charging by the
hour
started selling
services in 20 or 30-hour blocks. This new option
yielded higher average sales and ensured return
business.
- Change Your Product or Service Mix.
Adding or
remixing what you sell can help grow your typical
sale size. The same effect can sometimes be
achieved by no longer offering lower-priced products
or services.
- Add-on Sales are Key. "Do you want fries
with
that?" is a textbook example, but the same approach
works for any business.
- Create Monthly Sales Challenges.
Focusing your
sales team on a particular area for a week or a month
can also generate add-on business.
- Promote Hidden Products or Services. I
once
coached a technology service company that sold only
1.5 services per customer despite offering more than
20 types of services. A survey revealed that most
clients didn't know they sold those services. This
alone can increase sales substantially.
- Train Your Staff to Make the Higher Dollar Sale.
This is critical. Simply making personnel aware of
your target sale value will help you get there. If they're
just selling what the customer came in for, you're not
going to hit your numbers.
By using sales strategies and tactics like these
to
maximize every sale, you help keep the cash flowing
while you're building your business. Sales Strategy
and Planning will pay off many times over and your
customers tend to be more satisfied with the higher
level of services.
CEO Advisor, Inc. specializes in Strategic
Planning and Sales Strategy. Call today for a no cost,
no obligation discussion on how to increase your
sales at (949) 759-8676.
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Greetings!
Our mission is to provide
CEOs and business owners of small to mid-size
companies the
needed focus and expertise, coupled with hands-on
advice to grow
your business. To take your business to the next
level, call Mark Hartsell, MBA, President at (949)
759-8676 or email MHartsell@CEOAdvisor.com. Visit
us at
www.CEOAdvisor.com for more information.
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| Growing Your Company in Today's Challenging Market |
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I think we've all heard
enough
bad news recently to last us the rest of the decade!
Our message to clients is to focus on the basic
building blocks to grow your business. Here are
some fundamentals we recommend to any company
that wants to survive and grow in this challenging
market.
Focus. Who is your customer? How do
you
reach
them with your marketing, direct sales, partners and
VAR channels?
How do you sell to them? Are you achieving your
Financial Forecast? If you can't readily identify these
benchmarks, then you may need to take a hard look at
your business structure, personnel, costs of
good/services, etc. and rework your model. Your
Business Plan and Forecast should be updated
annually and reviewed quarterly to refocus your
time and resources on achieving written operational
and financial goals. If you don't have an updated
Business Plan hire an advisor to help you create this
critical aspect of your business.
Outsource and Build Virtuosity into Your
Company.
We tell clients to minimize fixed costs whenever
possible by outsourcing permanently or for 3 to 12
month periods of time. Marketing, interim senior
management, finance, HR, IT infrastructure, even
product development and manufacturing can be
outsourced to specialists who have levels of
proficiency that you might not be able to afford if you
tried to hire them full-time.
Flex and Tier Your Pricing Creatively to
Minimize
Barriers to Entry. In these challenging times,
make
sure
your pricing is tiered or structured so your clients can
afford to try out your products and services and begin
doing business with you. This does not mean cut your
pricing. Be flexible on terms in your negotiations and
look for creative ways to bring new customers
aboard.
Make Your Suppliers Real Business Partners!
Fed
Ex and UPS are setting up shop in their customer's
shipping docks to save valuable time and money and
become active business partners. You may not have
this clout, but you can ask your suppliers to extend
terms, work with you on just in time delivery schedules
or get creative with pricing, joint promotions, etc.
Ensure Your Marketing Plan and
Fundamentals
are on Target. Very few small to mid-size
companies
have a current Marketing Plan and Budget, much less
a current Business Plan and Forecast. It is vital that
your marketing message is clear and concise and
that you track all marketing activities. Any expenditure
should be monitored for effectiveness with an ROI on
each activity. A coordinated marketing program is the
key to supporting your sales effort and achieving
results.
CEO Advisor, Inc. provides management
advisory services to CEO's of small and mid-size
companies. We address your specific needs with
hands-on action, not just analysis. Call us today at
(949) 759-8676 for a free consultation.
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| Client Testimonial |
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"I can't believe how much money I was leaving on
the table before CEO Advisor, Inc. Mark showed
me how to capture a lot more profit without expending
more man-hours and capital. The most exciting part
is that I now have a very specific plan and forecast of
my company's future. It looks very bright indeed.
Thank you Mark!"
President
Web Services
Company
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| Words of Wisdom |
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"A market is never saturated with a good product, but it
is very quickly saturated with a bad one."
- Henry Ford
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| CEO Advisor, Inc. - Member of Accredited Organizations |
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- Tech Coast Venture Network
- Technology Council of So. Cal.
- Orange County Venture Group
- Irvine Chamber of Commerce
- Newport Beach Chamber of Commerce
- Institute for Independent Business
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