Increasing your average dollar sale is one of the most important steps to a solid sales strategy and reaching your goal of maximizing every sales opportunity. Selling can be a high-pressure venture; the line between offering additional products or services and pressing too hard is often overstepped. This can cause you to lose existing customers and potentially steer new customers away through negative word of mouth reviews. Let’s look at five ways you can improve your average dollar sale and attract new customers while keeping existing customers happy and singing your praises to family and friends.
1. Know your worth and charge accordingly
Your company provides the highest quality products and exceptionally great customer service. This is what distinguishes you from your competitors so use your high quality as a tool for maximizing your average dollar sale. Your customers will pay a little more for that quality experience so price yourself accordingly.
2. Offer Add-Ons
Add-ons are a simple and extremely effective way to increase average dollar sales. By offering the customer something additional at the point of sale, they are more receptive to hearing about what else you may have to offer. Whether it’s a higher priced product or something related to the original sale, use this opportunity to allow the customer to think about what you’re offering. It is important to remember not to push additional offers too hard. By asking the question, you will get some people to agree to an additional sale, but many will say “no”. In that case, move on and process the sale.
3. Increase your prices
Many small business owners become terrified that raising prices will drive away customers and dissuade potential new customers from considering you. Remember tip #1 – know your worth. Price is not usually the main deciding factor in a customer’s decision-making process. Look at Starbucks™ or Apple™; price increases do not deter many customers from choosing their products. People will pay more for a product or service if they believe they are getting good service.
I touched on this in point #2, but cross-selling is not the same as offering add-ons. Here, you’re asking the customer to buy additional items on top of the original purchase by suggesting a product that would complement the product has already decided to buy. This is a bit more difficult than add-on sales, but Amazon™ has used this technique to increase its average dollar sales significantly.
5. Invest in training and retaining your sales team
Hiring and training the right sales team is vital. You need people who are focused on improving the average dollar sale and are great at customer service. Proper training will improve your team’s capabilities and make them more comfortable with the techniques that will help achieve your goals. Also, sales incentives in the way of commissions or friendly competition between fellow sales staff can help with retaining good salespeople.
Is all of this enough?
These five techniques have proven results that will help you increase your average dollar sale. Of course, there is much more to growing your business and increasing profits. Please call if you’d like to discuss how you can keep your business on the right track. We’re here for you.
Michael Allen, CPA
Allen & Company, PC
(770) 428-6229 (T)
(770) 425-5481 (F)