Recently we bought a new vacuum cleaner. It does everything we wanted – but the clincher was the two Jamie Oliver Tefal frypans and a steam cleaner that came for “free” with the purchase. We spent just outside what we’d budgeted, but we’re happy it was a win-win deal.
How many of you just have to buy those that extra loaf of bread at your local bakery because you’ll get a free muffin when you do? Maybe you get your loyalty card stamped at the same time to collect even more freebies. What about that chocolate bar you couldn’t resist when you bought petrol, because you got bonus Fly Buys points (out of interest, has anyone ever redeemed anything on Fly Buys?)?
They’re all examples of tactics to increase average dollar sale and could be vital tools for improving the profitability of your business.
Start by working 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 go to work on ways to boost that number.
Ikea and McDonalds are masters at this. Check out how many of these they use next time you’re in one of their stores.
Add-on sell – “Would you like fries with that?” is the classic example. Or the men’s clothing shop that shows you shirts and ties that would look fabulous with your partner’s new suit.
Use a checklist – This will turbo charge your add-on selling. Simply run through a checklist whenever a customer purchases a particular product. Prepare the lists for a range of products, and make sure all sales staff use them. For example, if a customer buys a can of paint, check whether they need brushes, drop sheets, thinners or stirrers.
Create package/bundle deals – think McDonalds Extra Value or Kids meals.
Start a frequent buyer program – If it works for the local bakery or coffee shop, could it work for you? This works particularly well in retail and personal services. With your CRM and emails to your database, staying in touch and making offers is easy.
Improve your point of sale materials – Posters, brochures, shelf talkers, bin labels and counter cards. Focus on product or service benefits, and include accessories or complementary services that are commonly purchased with the item.
Impulse buys – Display small, tempting items close to the cash register or reception desk. Again perfect for retailers and personal service businesses who also sell products.
Display complementary items close to each other – Ikea are champions at this – and just about every other tactic in the list! Display products that go together so there’s a chance of multiple purchases eg torches next to batteries, mops with buckets., brushes with shampoo.
Use in-store samples – Bakeries usually tick this box too – as did Myer Doncaster by getting me as a gangly 16 year old to offer a spray of perfume to harassed Christmas shoppers! How can you entice potential buyers to experience your brand – at little or no cost to you?
What are you doing to increase your average dollar sale?