average dollar sale

Need to increase average dollar sale? Learn what to encourage, AND what to avoid.

Before I give you some tips on what you should and shouldn’t do to increase the average dollar sale that your customers spend with you, have a think about these questions:

  • On average, how much do your clients spend with you each time they buy from you?
  • What could you do to increase the average purchase value of each customer?
  • What should you increase it to?

My previous blog on the different ways to increase your number of transactions highlighted the notion that focusing more attention on getting past customers to buy again is 6 times easier (and cheaper) than finding new customers. This is most definitely still applicable here.  In fact, it is often even easier to increase the value of each sale: you have already done the hard work in getting someone to buy…. now you just need to influence how much they spend.

The reality is that acquiring new customers is hard and costly work, but increasing the sale total with an already engaged customer is relatively easy and highly profitable.

Imagine the difference that a 10% increase the value of each sale would make. It’s not a big jump, right? There are over 70 different ways in which this could happen. I’ll fill you in on a few:

  1. Present additional related products: Once a customer has made a decision to buy from you, they become psychologically more amenable to an additional purchase (especially if the next item is cheaper than the purchase they have already committed to). A perfect example of up-selling is McDonald’s iconic catchphrase “Would you like fries with that?” This simple question added $20Million in addition weekly profit!
  2. Offer an upgrade: Offering incremental upcharges to your customers can significantly add to the top line… and it costs nothing to ask! You may experience this a lot when you go to the cinemas to watch a movie, where the employees always ask if you would like to upsize to a larger drink or popcorn, to last the whole movie of course. Consider what your business could offer that will provide additional value to the customer.
  3. Raise your prices: Your product or service will willingly be bought by the customers who believe that they are getting better value. Not only that, they would also be willing to pay more for it! The more unique you make your product or service, and the better you inform your customers, the more valuable your target market will perceive you to be.

Now that you know a few ways that will easily and cheaply increase your average dollar sale, here are a couple of tips highlighting the specific things you want to avoid doing:

DON’T…

  1. Assume your customers know every product or service you have available, or the details and benefits of each of those products or services
  2. Fail to offer an upgrade. It costs nothing to ask!
  3. Offer what YOU believe your customer will buy, especially if it is less than what they really need.

It’s time to brainstorm all the different ways your business could increase their average dollar sale. Call me on (02) 9146 4439 or click here to book a 1 on 1 session with one of our business coaches to discover more!

And don’t forget…

“Small changes eventually add up to huge results…”

Want a simple, cheap and easy way to increase profit? Increase how often people buy from you!

It is very common for business owners to be so caught up in trying to find the best ways to gain more customers, that no one is thinking hard enough about how to increase their current customers’ average number of transactions. Yes, gaining new customers will most definitely increase profit, but think about this… your existing customers clearly already like what you do, which makes it about six times easier (and cheaper) to get a past customer to buy again than to acquire a new one.

Now, I want you to ask yourself this question…

How many times a year do your clients buy from you? How can you increase this frequency? And what will you increase this average to? It’s time to start devising the ways you can encourage past clients to buy from your more often. Get brainstorming!

Need a few ideas? Consider these…

Hairdressers often end their appointments with asking their client when they would like their next appointment to be. Not only does this lock in their next sale, but it also gives the hairdresser a great opportunity to build a relationship with their client and to get to know them more.  When you’re with a customer, be sure to position their next purchase as well.

Boost Juice is a company which any business owner could learn from. They have a very simple and easy-to-use membership program which gives their customers a free boost for every 10th visit. As well as that, they make sure to say thank you to their client by using the name that comes up on their membership card. This is a great incentive to encourage clients to come back and buy, as well as making them feel good by knowing their name.

Imagine how much your cash flow would improve if all your customers bought once more from you each year or quarter. You would be steps closer to your financial goals!

So here’s a note to leave you with… Have a good think about creating products and services that encourage clients to buy off you more often. Then be sure to proactively trigger more purchases.  It is a great way to build your business more quickly.

Need help brainstorming some ideas? Click here or call me today on (02) 9146 4439 to book an appointment with one of our coaches.

Till next time…

“Every contact we have with a customer influences whether or not they’ll come back…”