“If you don’t know where you are going, any road will take you there”
Charles Lutwidge Dodgson, better known by the pen name Lewis Carroll, 1832 – 1898. English author, mathematician, logician, Anglican clergyman and photographer.
Whether you are a micro business or a multinational organisation, there’s only five ways to increase your Dollar sales, being through increasing Leads, Conversion, Average Sale, Frequency and Price.
Leads. There are a myriad of ways, including Direct contact, Media and internet advertising, Sponsorship, Network groups, Professional associations, Referrals, Competitions, Joint ventures Trade nights and Network hubs. Which do you use and do you measure their effectiveness?
Even if you only have a few clients, don’t ignore contacting others within those organisations to generate more leads. The sales habit of only calling on a particular person (e.g. Chief Buyer) can be limiting and fraught with danger. The person who buys is not always the person who uses.
Conversion. What methods you use will depend upon your operation. It could include: Maintaining contact, Personal service, Buy before a certain date or event, Competitions, Prize/reward for joining, Discounts/sale, Something added for free and ‘Happy hour’.
How you approach people over the phone or how you answer the phone can be important to making a sale. When you phone someone, you are interrupting what they are doing so always ask “Is it convenient to talk” as it demonstrates you respect and value their time.
If you only sell via the internet, how easy is it to navigate your website, order and pay?
Average sale. This is when you divide the sales dollars by the number of transactions in a given period. When you do this, it allows you to generate ways to increase this number by adding something else to the sale. Some of the ways include: Suggesting something which is complimentary (tie with shirt), Package pricing (for $2 more, two units), Upgrade offering (for another $10 a month customers receive a lot more, become a VIP member), Combinations (cream and strawberries, sandwich and coffee, hardware and software).
The average sale can be greatly influenced by the sales person through areas such as their product knowledge, enthusiasm, and customer focus. Customers don’t want your product, they want what your product can do for them. The end user wants the product benefits; the intermediary wants the monetary gain.
Frequency. The number of times people buy will depend upon your product, consumption/usage cycle, delivery efficiency, customer service, price, etc. Some of the ways of increasing frequency could include: Loyalty programs, Packaging, Sale specials, Customer service, Maintaining contact, Newsletters, New products, Special offers, Invitations and Customer life styles.
Pricing. This is what the customer is prepared to pay for your product and service. Price too high and the customer may not pay; price too low and it could cost you profitability. Develop a pricing strategy which is dynamic and is complimentary to your objectives. Some ways of pricing include: Positional, Differential, Cost Plus, Happy Hour, Seasonal, Demand, Fair, Target Profit and Competitive.
Needless to say, the price you can charge will be influenced by an understanding of your target market and the value customers perceive they receive. In the end it is not what you think your product is worth, but what the customer perceives it is worth.
Concentrate on increasing one or all five of the above factors and you will increase your sales.
The formula to Multiply your Profits
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