So, we’ve discussed McDonald’s, measuring numbers, changing your products and bundling your offerings.
Today I’m going to give you another 3 tips on how you can increase your average sale.
1 – Go for the add-on sale
“Do you want fries with that?” is a textbook example, but the same approach works for any business. One attorney I know started asking whether every client had an up-to-date will. Two out of three didn’t. the result was an extra $4,000 in average weekly billings. Later he repeated the feat with living wills.
Another way to drive add-on sales is to create a checklist of related products for a particular kind of purchase. If you’re a hardware store, a paint customer might also need brushes and drop cloths. Hand him a checklist and he’ll likely walk out with more than a can of Antique White.
2 – Create weekly or monthly sales challenges
Focusing your sales team on a particular area for a week or a month can also generate add-on business. I know someone who owned some photocopy shops and he pushed coloured paper one week and banners the next. Some grocery stores offer specials at the checkout counter to trigger impulse sales.
3 – Take hidden products or services out of the shadows
I once coached an insurance broker who sold only 1.27 policies per customer despite offering more than 14 types of insurance. A survey revealed that most clients didn’t know he sold those products! He was failing to show his entire hand. Signage, newsletters and other tactics can help.
The last 2 tips will be online within the next week!
To succeed... You have to believe in something with such a passion that it becomes reality - Anita Roddick
Wednesday, October 28, 2009
Wednesday, October 21, 2009
8 Tips for increasing your average dollar sale – Part II
Last week I was talking about the great strategy McDonald’s has developed to get more money from each order by asking one simple question: “Do you want fries with that?”
I already mentioned that you should measure your current numbers to be able to make changes and increase your own average sale. Today I have got 2 more tips for you:
1 – Change your product or service mix
Adding or subtracting to what you sell can help grow your typical ticket size. Take the case of a bakery that had an average sale of just $5. The problem was they offered virtually no higher-priced items. When they added specialty cakes and other premium goods, that figure jumped to $14.
The same effect can sometimes be achieved by dumping lower-priced products. If you sell three different toasters, drop the $35 model and the customer will spend $45 or $55 instead.
2 – Bundle your offerings
Encourage customers to spend more by giving them a package deal on multiple products or services. At McDonald’s, the bundles are Extra Value Meals that include an entrée, fries and a drink. At a car repair shop, it might be a tune-up and lube job rolled into one visit.
You can also bundle your time. One computer repair company that wasn’t making enough money charging by the hour started selling services in 10, 20 or 30-hour blocks. That new option yielded higher average sales and ensured return business.
Think about how you can apply this in your business to leverage your time and get better results! The next 3 tips will be online soon!!
To succeed... You have to believe in something with such a passion that it becomes reality - Anita Roddick
I already mentioned that you should measure your current numbers to be able to make changes and increase your own average sale. Today I have got 2 more tips for you:
1 – Change your product or service mix
Adding or subtracting to what you sell can help grow your typical ticket size. Take the case of a bakery that had an average sale of just $5. The problem was they offered virtually no higher-priced items. When they added specialty cakes and other premium goods, that figure jumped to $14.
The same effect can sometimes be achieved by dumping lower-priced products. If you sell three different toasters, drop the $35 model and the customer will spend $45 or $55 instead.
2 – Bundle your offerings
Encourage customers to spend more by giving them a package deal on multiple products or services. At McDonald’s, the bundles are Extra Value Meals that include an entrée, fries and a drink. At a car repair shop, it might be a tune-up and lube job rolled into one visit.
You can also bundle your time. One computer repair company that wasn’t making enough money charging by the hour started selling services in 10, 20 or 30-hour blocks. That new option yielded higher average sales and ensured return business.
Think about how you can apply this in your business to leverage your time and get better results! The next 3 tips will be online soon!!
To succeed... You have to believe in something with such a passion that it becomes reality - Anita Roddick
Thursday, October 15, 2009
8 Tips for increasing your average dollar sale – Part I
I was reading some old hints and tips by founder of ActionCOACH Brad Sugars and thought I'd share some of these with you today:
Walk into any McDonald’s, order a Quarter Pounder, and the clerk will invariably ask, “Do you want fries with that?” Each affirmative answer adds $1 or more to that particular sale. If just a fraction of McDonald’s’ 54 million daily customers say yes to that question, that’s millions of extra dollars in the burger biggie’s pocket.
The same strategy is important for any business! You haven’t yet built a large customer base, so you need to coax as much money as possible from each person who does show up. It’s the old story: A bird in the hand is worth two in the bush.
The issue at this stage isn’t market share but wallet share. Boost the dollar value of your average sale, and you boost your cash flow and bottom line. Here is the first tip how you can bring in more of those sales. The other 7 will come in the next posts, so make sure you keep an eye out for them!
1 - Crunch the numbers.
Begin by figuring out the dollar value of your average sale. If you have 20 customers and total sales of $1,000 on a typical day, your average sale is $50. Then you can set a new target and plot your strategy to hit it.
Depending on your business, you might also want to calculate your average sales per hour, day of the week, employee, location, marketing campaign or other variables. Frequently the answers will lead directly to a plan of action. If your numbers are low on Mondays, for example, you can plan special Monday promotions. If one ad typically brings in a $2 sale and another weighs in at $12, you can adjust accordingly.
The next 2 tips will be online next week! For today; go crunch those numbers!
To succeed... You have to believe in something with such a passion that it becomes reality - Anita Roddick
Walk into any McDonald’s, order a Quarter Pounder, and the clerk will invariably ask, “Do you want fries with that?” Each affirmative answer adds $1 or more to that particular sale. If just a fraction of McDonald’s’ 54 million daily customers say yes to that question, that’s millions of extra dollars in the burger biggie’s pocket.
The same strategy is important for any business! You haven’t yet built a large customer base, so you need to coax as much money as possible from each person who does show up. It’s the old story: A bird in the hand is worth two in the bush.
The issue at this stage isn’t market share but wallet share. Boost the dollar value of your average sale, and you boost your cash flow and bottom line. Here is the first tip how you can bring in more of those sales. The other 7 will come in the next posts, so make sure you keep an eye out for them!
1 - Crunch the numbers.
Begin by figuring out the dollar value of your average sale. If you have 20 customers and total sales of $1,000 on a typical day, your average sale is $50. Then you can set a new target and plot your strategy to hit it.
Depending on your business, you might also want to calculate your average sales per hour, day of the week, employee, location, marketing campaign or other variables. Frequently the answers will lead directly to a plan of action. If your numbers are low on Mondays, for example, you can plan special Monday promotions. If one ad typically brings in a $2 sale and another weighs in at $12, you can adjust accordingly.
The next 2 tips will be online next week! For today; go crunch those numbers!
To succeed... You have to believe in something with such a passion that it becomes reality - Anita Roddick
Tuesday, October 13, 2009
4 Ways To Make Television Ads Work
Last week I gave you some tips on how to improve your newspaper advertising. This week I thought we could take it one step further and look at some things we can do to improve television ads. It might not apply to as many of you, but there are some things that don't just apply to television only. So have a look!
1 – Remember you are not in business to entertain, you are there to sell! Many ‘clumsy’ TV ads sell more product than the famous big budget ones that win awards. When making your own TV ads concentrate on packing the ad with product benefits. Your audience will forgive you for a clumsy ad if it tells them how your product can improve their lives.
2 – Your customers don’t care about USP’s, just give them benefits! USP’s are the ‘unique selling points’ of your product or service – e.g. the leather seats in your new car model. But customers don’t care, they want to know about your benefits – e.g. ‘upholstery that gently hugs you in all the right places, making you feel one with the car’. You only have 30 seconds, if you waste it on USP’s you will be disappointed. Stick to benefits, it’s what they want to know.
3 – Use a mix of 30, 60 and 15 second ads. It’s more cost effective. 30 seconds is the most common for TV ads. Most TV production studios can be persuaded to make 60 and 15 second versions of the same ad for little extra. The 60 second version allows you to tell more of your selling story. The 15 second version may help you get FREE bonus spots. Run about four 60 second ads for every six of your 30 second ads. Supply the 15 second versions so the TV channel has more options when giving you small letters bonus spots.
4 – Learn a lesson from the infomercials. Spend less money, sell more products! Infomercials never win awards, but they DO WIN SALES! Don’t be afraid to use some of the tricks of the infomercials. Demonstrate your product – and if you can’t afford actors, just speak to the camera yourself. Holloways ads for TrustPower do this and the ads have out-performed many bigger budget ads. If you’re afraid of forgetting your lines, don’t worry, ask the production studio to use a ‘Teleprompter’ so you can just read your lines like the newscasters do.
If you have any more tips, please share them with us!
To succeed... You have to believe in something with such a passion that it becomes reality - Anita Roddick
1 – Remember you are not in business to entertain, you are there to sell! Many ‘clumsy’ TV ads sell more product than the famous big budget ones that win awards. When making your own TV ads concentrate on packing the ad with product benefits. Your audience will forgive you for a clumsy ad if it tells them how your product can improve their lives.
2 – Your customers don’t care about USP’s, just give them benefits! USP’s are the ‘unique selling points’ of your product or service – e.g. the leather seats in your new car model. But customers don’t care, they want to know about your benefits – e.g. ‘upholstery that gently hugs you in all the right places, making you feel one with the car’. You only have 30 seconds, if you waste it on USP’s you will be disappointed. Stick to benefits, it’s what they want to know.
3 – Use a mix of 30, 60 and 15 second ads. It’s more cost effective. 30 seconds is the most common for TV ads. Most TV production studios can be persuaded to make 60 and 15 second versions of the same ad for little extra. The 60 second version allows you to tell more of your selling story. The 15 second version may help you get FREE bonus spots. Run about four 60 second ads for every six of your 30 second ads. Supply the 15 second versions so the TV channel has more options when giving you small letters bonus spots.
4 – Learn a lesson from the infomercials. Spend less money, sell more products! Infomercials never win awards, but they DO WIN SALES! Don’t be afraid to use some of the tricks of the infomercials. Demonstrate your product – and if you can’t afford actors, just speak to the camera yourself. Holloways ads for TrustPower do this and the ads have out-performed many bigger budget ads. If you’re afraid of forgetting your lines, don’t worry, ask the production studio to use a ‘Teleprompter’ so you can just read your lines like the newscasters do.
If you have any more tips, please share them with us!
To succeed... You have to believe in something with such a passion that it becomes reality - Anita Roddick
Wednesday, October 7, 2009
4 Ways To Make Newspaper Ads Work!
Too often when I read the paper I see ads that make the hairs on the back of my neck stand up with just one look. Most of these ads are almost certainly a waste of time, but they could improve so much by just a little tweeking ... which is why I want to give you 4 tips on how to do this:
1 –
Six simple rules that increase sales from newspaper ad headlines… Research shows that 80% of people will only read your headline – and that’s if your ad is stunning! Here are six tips to make your headline work:
*Most important, mention a benefit – “The handles on these webstone designer coffee mugs fit even the biggest hands”.
*Speak well of your product. They’re not just coffee mugs, they’re designer coffee mugs.
*Mention the name of the product – Webstone designer coffee mugs.
*Use rhetoric to pull more readership in your headline – “Sick of coffee mugs that are hard to hold? The handles on these Webstone designer mugs fit even the biggest hands”.
*Don’t be afraid to make your headline long. E.g. See the headline in point 4 above. Short headlines often don’t sell any more product.
*Use news – “Now Webstone’s designer coffee mugs with the big easy handles feature Ken Done’s latest native art designs”.
2 –
Use photos that have ‘story appeal’. Don’t use illustrations! Choose photos that make the reader thing “what goes on here?” E.g. don’t run a photo of a car company chief standing next to the latest model – have him/her in a suit, but lying on a mechanics gurney under the car or standing in the open driver’s door holding up the optional ‘Momo’ steering wheel. Where possible avoid illustrations. Your customer finds photographs more believable.
3 –
Always run a ‘caption’ under the photo. Imagine if the NZ Herald ran a photo of Helen Clarke with no caption underneath. You’d know very well who the photo is of, but instinctively you’d look under the photo for the caption. Research shows that twice as many people read the caption under the photo, than read the body copy. So never miss the opportunity to tell all those readers your selling story in the caption under the photo.
4 –
Write long copy, but tell the whole story in your first 50 words. Readership falls off after your first 50 words, so you’ll need to tell your whole selling story right there. But remember that if your copy is good, many of your customers will read more than a thousand words. You’re still reading after 441 words on this page alone!
So I hope to see some of your ads in the paper soon, and some that might even tempt me to buy your products!
To succeed... You have to believe in something with such a passion that it becomes reality - Anita Roddick
1 –
Six simple rules that increase sales from newspaper ad headlines… Research shows that 80% of people will only read your headline – and that’s if your ad is stunning! Here are six tips to make your headline work:
*Most important, mention a benefit – “The handles on these webstone designer coffee mugs fit even the biggest hands”.
*Speak well of your product. They’re not just coffee mugs, they’re designer coffee mugs.
*Mention the name of the product – Webstone designer coffee mugs.
*Use rhetoric to pull more readership in your headline – “Sick of coffee mugs that are hard to hold? The handles on these Webstone designer mugs fit even the biggest hands”.
*Don’t be afraid to make your headline long. E.g. See the headline in point 4 above. Short headlines often don’t sell any more product.
*Use news – “Now Webstone’s designer coffee mugs with the big easy handles feature Ken Done’s latest native art designs”.
2 –
Use photos that have ‘story appeal’. Don’t use illustrations! Choose photos that make the reader thing “what goes on here?” E.g. don’t run a photo of a car company chief standing next to the latest model – have him/her in a suit, but lying on a mechanics gurney under the car or standing in the open driver’s door holding up the optional ‘Momo’ steering wheel. Where possible avoid illustrations. Your customer finds photographs more believable.
3 –
Always run a ‘caption’ under the photo. Imagine if the NZ Herald ran a photo of Helen Clarke with no caption underneath. You’d know very well who the photo is of, but instinctively you’d look under the photo for the caption. Research shows that twice as many people read the caption under the photo, than read the body copy. So never miss the opportunity to tell all those readers your selling story in the caption under the photo.
4 –
Write long copy, but tell the whole story in your first 50 words. Readership falls off after your first 50 words, so you’ll need to tell your whole selling story right there. But remember that if your copy is good, many of your customers will read more than a thousand words. You’re still reading after 441 words on this page alone!
So I hope to see some of your ads in the paper soon, and some that might even tempt me to buy your products!
To succeed... You have to believe in something with such a passion that it becomes reality - Anita Roddick
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