The Biz of Pacelinebiz

Turning things on end to achieve results!

Ways to increase sales in 2010

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This week its time for us to get back to business.  We all need more sales.  If we don’t have more sales, we will not be able to expand our businesses and increase profits. The cost cutting was done in 2009 we need to get off our back sides and increase sales in 2010. 

 Today’s topic – 4 ways to increase sales.  This was explained to me first by my father 35 years ago after he went to a sales seminar.  Over the years I have heard various forms of the message and it needs to be drilled into our heads.  Frankly, it is very simple.  The 4 ways are: 

  1. Increase frequency of transactions
  2. Increase price of transactions
  3. Increase number of transactions
  4. Increase value of each existing transaction 

Increase frequency of transactions – (come in more often) think frequent flyer or frequent diner programs as an example.  This is also used by various companies that offer 1 free item for every 4th, 5th, 6th or “Nth” item purchased.  Pizza shops, car washes, donut shops to name a few use this.  This won’t work for companies that only offer their service infrequently.  H & R Block, for example, can’t use this because each customer uses them once per year.  (They can use other strategies) 

Increase price of transactions – add a few extra dollars to hourly rate, add $1 to the price of all restaurant menu items.  The difficulty with this strategy is how to do so without appearing to reduce the “value” for the price.  It is best to avoid competing on price. 

Increase number of transactions – (new customers) Advertising initiatives, more marketing efforts, networking etc.  Down side to this is the cost of those strategies may not lead to adequate results or the time spent by a small company may lead to poorly servicing current customer needs.  The cost to get a new customer is greater than keeping existing customers or increasing sales with existing customers.  This leads to the next point. 

Increase value of each existing transaction – (the classic adding fries to the hamburger order) This is one of my favorite strategies.  It can be a win-win situation if you can provide the added service or product for an equal or lesser value than the existing provider.   Your customer will be much more likely to add more of your services than you finding and adding a new customer.  There may be a very good reason why you can provide goods or services for a lesser amount than the existing provider beyond your lower overhead costs or other reason.  Let me provide a couple examples that may help.  If you are an Accountant, in addition to “taking care of the books” perhaps you can provide other services that your customer is currently purchasing.  Examples would be payroll processing, Human Resource/benefits consulting, computer services and the list can go on depending how varied the talent in your firm is.   If you are a carpet cleaning service perhaps you can offer air duct cleaning services or dryer vent repair/cleaning.  Since you are already at their location the travel time and other costs are absorbed in the price of the original transaction.  You may be able to offer them a discount yet still have a higher margin on the service than the existing provider.  That is a nice a win-win situation.  By providing this service at a lower price it also builds your relationship with your customer and can lead to referrals – new customers see item 3 of 4. 

I hope this quick refresher will spur you on to make a push to increase your sales.  I am going to keep it in the forefront of my thoughts as I enter 2010.

Good luck!

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Written by pacelinebiz

January 4, 2010 at 9:44 pm

Posted in Business

Tagged with ,

One Response

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  1. Thanks,Doug.Great learning start to the new year.

    Frank Whalen

    January 5, 2010 at 11:11 am


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