Top tips to increase your average sale value
Do you know what the average sale value is for each customer who buys from you? It’s a simple calculation to make – just make a note of what every customer buys, add up the total and then divide by the number of customers. Then, once once you know what the figure is, you can work on increasing it.
The great thing about increasing the average sale value is it’s really easy. Why? Because the customer has already bought from you so is open to being persuaded to buy a little more. It’s a known fact that once someone had decided to buy the main item they are very susceptible to buying add-ons (think about when you buy a car – the big decision is made so adding the extras is easy). Here are three great ways of improving your average sale value.
Increase your prices.
If you’re going to run a small business effectively you need to stay on top of your pricing – and that includes increasing them regularly. As a benefit, this is also possibly the most simple and effective tactic for increasing average sale value. Many business owners are scared of increasing prices but if you’re providing a good product/service and looking after your customers you shouldn’t need to worry. Make the changes small and regular and you will be surprised at how much you can increase prices by before people start to notice.
Cross or add-on sell.
The most famous proponents of this method of selling is McDonalds; how many times have you heard it – ‘would you like fries with that?’, ‘do you want to go large?’. The main purchase has been made so it’s easy to add a little extra on for minimal charge. Always make sure that the additional items or services being offered compliment the main purchase and help to make it better or more effective.
Use a check off list.
This really helps you and also benefits the customer or client. When they purchase something have a list by the payment point to go through with the customer to ensure that they have all the additional things they might need to complete the purchase. For example, if they’re buying paint from a hardware store, the check off list would include brushes, brush cleaner, rollers, dust covers etc. If you provide a service, have a check off list/questionnaire to give the client the opportunity to chose additional elements such as guarantees, emergency call-out options etc. Using the list really helps to demonstrate to your customers that you care about them getting the best service possible.
Whether you’re just starting a small business or are improving one you’ve had for years increasing the average sale value is a great way to add profit to the bottom line with little effort on your part. Try it, you will be surprised by its effectiveness.