4 Ways To Increase Your Average Sale Value And Improve Profit | Your Business Coaching Club

If you can increase your average sale value you will significantly improve profit in your business.

You’ve put a lot of time and money into getting that customer in to your business in the first place, so why not leverage the return on that investment where you can?

Let’s look at four ways to increase your average sale value.

1.       Cross selling

Cross selling is when you sell other products or services from your range in addition to the customer’s original choice.  Another term used to describe it is suggestive selling.  You suggest additional items to complement the original purchase.

To start thinking about possible cross selling opportunities within your business, go back and look at your major product or service offerings and ask:

What else could we offer to go with this item that would add value and help the customer get the most out of the purchase?”

2.      Up-selling

Another strategy to increase your average sale value is to up-sell purchases from lower to higher priced items.

A great way to do that is to offer your products or services in three or more tiers, along the lines of good, better and best, or bronze, silver and gold.

Your first tier might be your budget items, the ones for price-conscious buyers.  Your second tier is the one you actually want the majority of customers to buy, and your third tier items will appeal to those who are happy to spend a little more for more value.

Interestingly, statistics show that most people will select the second tier item – they don’t what to be seen to be cheapskates buying the budget range, but they also don’t want to waste money on the top of the line product.

This is why it is important that you put your most profitable and attractive product option in the second tier.

3.      Bundling

In bundling items or services together into one single purchase you add value to your customer.  It’s designed to make your products and services more attractive, create a higher perceived value for the customer and increase your average sale value.

Take a look at your full range of products and services and see if there’s any opportunity to package, or bundle things in this way in your business.

4.      Smart merchandising

Signage, ticketing, presentation, packaging, traffic flow, and point-of-sale displays are all types of merchandising that can increase your average sale value.  Having educational information about your products or services, and sales tools like testimonials or brochures, can also help build your customers’ confidence in your business.

These techniques apply equally in the on-line world where your web site is your store front and how you move customers through your site, how you present your offers and how you gain their trust will drive the success or failure of your on-line business.

 

While your marketing strategy will normally focus on getting new customers or getting existing customers to return more often, applying these four ways to increase your average sale value will have a significant effect on how well you increase sales, improve your profit and grow your business.

 

Want more information on how to improve the profit performance of your business? Check out my 5 step system to achieve massive business growth.

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