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Just imagine what would happen to your bottom line if you could increase your average order size by 10%.  If your annual sales volume is $2.5 million then your sales would increase by $250,000.  What would this mean to your bottom line?  A 10% increase you say, not so fast.  In our experience, it is often 2 times this amount and is some extreme cases as much as 9 times 10% - that's anywhere from a 20% to 90% increase in profit! 

How is this possible?  Actually it is quite simple.  In the very short run, many of your costs may be fixed (you are already processing the rest of the order, making a trip to the customer… ).  As a result, a larger part of the 10% increase in average order size ends up dropping to the bottom line.

Here are 4 ways to increase your Average $ Sale.

Cross or Add-on Sell .  This is the easiest fast way.  Think of this as the "would you like fries with that" technique.  This approach continues to make millions from McDonalds.  Why not learn from them.

Use a checklist.  We often assume that the customer knows what she wants and we make an even bigger assumption that the customer knows everything we can do for them.  Make a list of what most people need when they buy X from you.  Then train your team to ask every customer who buys X do they need Y & Z.  You might even give the list to your customers.  Think of the paint store that gives out a list: primer, paint, tray, roller, replacement rollers, large brush, edging brush, drop cloth, hat, goggles, masking tape …

Measure The Average $ Sale. This is as simple as it sounds, and partly works simply because you are focusing on this area of your business.
 
This is important for every business, especially those with a real opportunity to increase their average dollar sale.  Measuring and reporting will highlight to your team exactly how well, (or poorly) they are performing in this area. Place your average $$$ sale chart on the wall and adjust it daily. If your team knows you are measuring it, they will no doubt try to improve it.

Team Incentives For Bigger Sales . Offer your team bonuses if they achieve more than a set target.  List the different prizes available beside each goal. Running it over the course of a month will keep the enthusiasm high amongst the team.

There is one common thing about all these techniques.  They are all very simple, require little planning and can be implemented even during seasonal peaks.  In fact, there is no better time, as your seasonal peak is your time of greatest leverage.

There you have it, 4 ways to increase your Average $ Sale.  I'm sure you can think of many more ways (we have 49 more).  Just pick one and get started.

Like to increase your Average $ Sale but not sure where to start?   To receive a complementary, no-obligation consultation email coaches@actionbusinessdevelopment.com or call Joanne at 416-483-9251 or 905-943-4257.

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