For some reason, perhaps you want to increase profits or you just want to grow your business, you sat down and decided you needed to increase your sales by setting a new sales target. Having worked out what sales you need to increase your profits or grow your business, you look at your new sales target – at how much you need to increase your current sales by – and you went “Oh crap!”
The increase in sales is scary! Oh my goodness, increasing my sales by 30% sound alright but that’s an extra $600,000! How the heck am I going to do that???
This video tells you exactly how to do it in three different ways that leverage up to a substantial increase in sales.
Remember all sales are made up of three components:-
- The price of your product or the basket of goods in a sale transaction;
- The number of customers you have; and
- The number of times an individual customer buys in a given period.
So say that you find the average sale value per transaction is $100; and you have on average 1,000 customers; and you look through your records and work out that they each buy from you 4 times a year.
Then your sales for that product is $100 x 1,000 x 4 or $400,000.
Instead of freaking out at one large sales target, break it down into chunks and see how you can increase each component. You will find that this makes it easier to achieve what at first appears as a massive target.
Moreover, once you have thought through which of the three components you can increase and by how much, you can then focus your planning on each of those components and find ways to increasing them.
- You can increase the price of your product or you can up-sell and cross-sell
- You can create initiatives to increase the number of customers such as referral rewards
- You can increase the number of times they buy by creating frequent buyer programs
Why don’t you try this method and let me know how you get on?
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