Increasing Your Average Sale - Part 2

As I'm writing today's entry I am attempting to put myself in your shoes, I imagine that you are already doing the best you know how to increase your average sale. You have a certain way of doing things and it can be difficult to look at things in new ways or change the way you play the game. However, part of being an Entrepreneur is seeing and taking advantage of opportunities. So let's explore some possible opportunities.

What do your customers really want? They want new and improved value. How do we know? Almost every item in a grocery store says it is "new and improved." Marketing research verifies that sales go up when a product is perceived as "new and improved." You probably don't run a grocery store, but your customers still want to understand what you offer that is new and improved. McDonalds (whether you love them or hate them) taught us a great way to add value and increase our average $ per sale.





Let's look at increasing your average dollars per sale the "McDonald's Way."

Do you remember how we used to order from McDonalds? A la carte or one item at a time.

Then I remember them asking, "do you want fries with that?"

What were they doing? They were increasing their average sale. The key is they asked us consistently every time we went there.

Then they introduced combo meals. Remember that?

What were they doing? That's right, increasing their average sale. They were also making it easier for customers to buy and make buying decisions.


The next step was to supersize. They created add-on options. You could choose between regular, large, or supersize.


Let's put this in more technical terms. Have you or your sales staff ask for the cross sell, "do you want fries with that?" What else could you ask your clients to buy that most of them will appreciate.

Then ask for the up sell, "would you like that in a meal?" What else do you offer as higher priced product or service, or like McDonalds, what could you bundle together that your customers will appreciate?

Are there any add-ons or point-of-sale items that will enhance your product or service offering?

So, what is the opportunity for you?

First, decide to focus on increasing your average $ per sale.
Second, think through the opportunities from your customers point-of-view.
Third, understand your numbers. What would an increased average sale mean financially?
Fourth, what is the low hanging fruit? Where is your easiest opportunity? Is it the cross sell, up sell, bundle, or add-on?
Fifth, write up a script for you and your sales people to consistently ask for the cross sell, up sell, bundle, and add-on.

Do you have any other suggestions? Please comment and share with the rest of us.

How Do You Increase Your Average Sale? Part 1

Most of my blog posts have been in the form of an article. Today I want to get you into the conversation. I'm hoping you will take a moment and respond. The topic for today is how to increase your average sale.

Most small business owners I talk to have a general idea of their average sale, they will say something like, "it's about $65 per invoice or sale." Then when we look at the numbers it is closer to $35 or $40 per sale. This is a number you really want to know well and accurately. The saying in business is, "What gets measured gets managed." You and I want to measure and improve our average sale. Here is why:

Lets say the annual revenue of your business is $520,000 (for easy calculation).

Divided by 52 weeks that means your average weekly revenue is $10,000.

You count up your weekly invoices and see that you make 100 sales per week.

That puts your average sale at $100 per customer or invoice.

What will happen if you can increase your average sale by just $25?

Your annual sales would be $650,000. That is an extra $130,000 per year from the same number of clients.

When I teach classes or seminars on this topic, I have had business owners tell me that their sales have gone up and their customers are happier. Think about it, they will be happier and you will be happier.

We will explore this topic for the next couple of days. Please add your comments and ideas for how to increase average sales and I will compile your comments along with several other sources to give many ideas increasing average sales.