Are you looking to increase the value of your business and make it even more profitable? In this article, we have compiled a list of 6 ways that you can increase your average dollar sale, increase your profits, and put more money back in your pocket.
Your average dollar sale directly correlates to your revenue and your bottom profit your company makes. Needless to say, it is extremely important as it also gives you a report on how efficient your sales system is.
Your Average Dollar Sale, or “Average Transaction Value,” is a helpful metric that tells you how much revenue on average you get from your customers on each transaction. Let’s say, for example, that your average dollar sale is $100. To calculate this, some customers might only spend $10 each time they buy from you and others might spend $1,000 so when you take all transactions together, the average your customer spends per transaction is $100.
Many business owners do not look at their business this way and therefore when it comes to increasing your Average Dollar Sale, they often question, “How do I make more money with every customer interaction without seeming pushy?”
I have a few suggestions, which is why I’ve compiled a list of 6 ways that you can increase your Average Dollar Sale, increase your profits, and put more money back in your pocket.
You can’t increase something you aren’t tracking. So, the first step is to put a process in place to be able to measure your Average Dollar Sale. This may require you to examine past sales reports, develop an excel tracker, or modify your accounting system. We find that just by tracking this, our clients see annual increases of 10%. Think about the impact to your bottom line of increasing your average dollar sales by 10%. I encourage you to come up with 1 or 2 strategies that you will implement the next 12 months.
When customers seek and then purchase a product or service, that can be the end of that interaction if we do not make them aware of other offerings we have. When they find your business, they often are looking for one thing. It is your job to inform them of everything you offer. If they had a pleasant buying experience with their initial purchase, if you simply offered them other products or services, they would be more than happy to purchase more from you.
You may have found a market that works for you and may be hesitant to branch out to others due to fears of oversaturation or lower prices. There may be risks in penetrating other markets, but there are just as many opportunities. The key is to have established and functional systems and a well-prepared team. If you have these, it is much easier to exploit that foundation to move into other markets.
Many businesses, including yours, may have premium products or services available. If not, you should definitely consider adding some. This can look like having additional add-ons for specific services or having a more luxurious version of a current product. Offer these at various price ranges. Then, at the point in time that your customer purchases, it only makes sense to offer the opportunity to upgrade. If they see the value of the add-ons through enhanced performance, longevity, or cost-benefit, they will be happy to purchase an upgrade.
An issue I see a lot of time with “pre-qualifying” is that we already have a pre-determined idea of what we think they’re willing to pay before we even start selling to them. This can actually be very limiting for your sales team. The solution is not to eliminate the concept altogether but to understand that it’s always okay to ask for a little more. If you offer a higher price for your price or services, you may just get it or meet somewhere in the middle - either of which still increases the purchase sale.
Don’t be a “one-trick pony.” Find ways you can complement your current products or services. This allows you to offer variety to customers which holds their interest in your business and extends your relationship with them. As a result, they can buy more and increase profits. Another benefit of extending your product line is that customers have more things to refer to potential customers.
If you include any of these tactics into your business, we guarantee you to see an increase in your Average Dollar Sale. This will increase the value of your business and make it even more profitable.
If you make the commitment to being organized and leading your team through these changes, the effort will pay off.
If you need a business coach to help guide you through these things, visit our website to book some time with us to learn how we can help you increase your Average Dollar Sale. We offer a few complimentary coaching sessions every month.
I am a certified Business Coach, providing business help, business advice, business coaching and mentoring services to successful and emerging business owners. I have a passion for helping businesses like yours grow and become profitable, so you, the business owner can enjoy the lifestyle you deserve.
As your Business Coach and advisor, I will help you deliver the results you desire using proven tools, methodologies and systems, tested and perfected over tens of thousands of businesses worldwide for over more than two decades. I will hold you accountable for your results and just like a sports coach, push you to perform at optimal levels. Let's schedule a complimentary Business Coaching session to get started.