Increase Average Sales

When you go to your local McDonald’s and order a burger the clerk will automatically ask you if you want to have fries as well. Every customer who answers “Yes” adds $1 or more to that particular sale. If just a fraction of McDonald’s 54 million daily customers say “Yes,” that means millions on extra dollars. This strategy is an effective way of increasing average sale.

The same strategy used in increasing average sale should be observed by start-ups. These businesses have not yet built a large customer base so they need to increase average sales as much as possible from each person who buys from them. It is like the old story: A bird in the hand is worth two in the bush.

During the first few months of operation your focus is not the market share but increasing average sales. Boost the dollar value of your average sale, and you boost your cash flow and bottom line. Here are some tips to help you increase average sales.

1. Crunch the figures. To start increasing average sales you have to understand the dollar value of your average sale. Say for example you have 30 customers and your total sales reach $1,500 on a normal day, then your average sale is $50. After you figure out your average sale in a day you can set a higher target from then on and plot your strategy as to how you can reach your goal.

Depending on the nature of your business it would be helpful if you can calculate your average sale per hour, day of the week, location, marketing campaign and other variables. The answers that you get will most likely lead you to your plan of action. Say for example you average sales on a Monday is pretty low compared to other days then you can plan special Monday promos.

2. Change the product or service mix. Adding or subtracting to what you sell can help you increase average sales. 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.

You can achieve the same effect if you get rid of lower-priced products. Say for example you sell three different types of jeans drop the $35 jeans and the customer is forced to get either the $45 or $55 jeans instead.

3. Give bundle offerings. A good way of to increase average sales is by encouraging your customers to spend more. How? You can provide consumers with a packaged deal on various products or services. Take McDonalds for example, they do have what we call Extra Value Meals that include burger, fries and a drink.

4. Raise prices. Being the cheapest in the market is not the right technique to increase average sales. If you are just starting your business, price your products or services on the high side and then figure out how to offer more value. Being the cheapest in the market is not necessarily going to pay the bills, and you will be left high and dry when a competitor beats your price.

If you use these strategies I have cited you would be able to increase average sale by maximizing every transaction you get. You help keep the cash flowing while you are getting your business off the ground. And once business has taken flight, these same strategies can develop your flight plan for generating peak profits. Master the art of supersizing your sales early and it will pay off many times over.