CEO Advisor Newsletter™
May/June 2008
Practical Advice to Accelerate Growth and Profits

In This Issue

7 Critical Tips for Increasing Your Average Sale

Growing Your Company in Today's Challenging Market

Client Testimonial

Words of Wisdom

CEO Advisor, Inc. - Member of Accredited Organizations


 

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.
  1. 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.
  2. 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.
  3. 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.
  4. Add-on Sales are Key. "Do you want fries with that?" is a textbook example, but the same approach works for any business.
  5. Create Monthly Sales Challenges. Focusing your sales team on a particular area for a week or a month can also generate add-on business.
  6. 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.
  7. 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.




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.


  • Growing Your Company in Today's Challenging Market
  • 3 tall buildings

    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.

  • Client Testimonial
  • "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

  • Words of Wisdom
  • "A market is never saturated with a good product, but it is very quickly saturated with a bad one."
                                            - Henry Ford

  • CEO Advisor, Inc. - Member of Accredited Organizations

    • 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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