McDonalds made Millions out of this simple question…Could you do that too?
If you are a business owner who is almost solely focused on winning new customers, you’re missing sales and PROFIT opportunities beyond your wildest dreams!
I want to talk about your Average Dollar Sale….and why it’s so important.
McDonalds are well known for asking “Do you want fries with that”…In fact these days there’s options for small, medium and large meals….that already have fries and a drink included.
They have done a fantastic job a educating their customers about purchasing more than just one item.
You should too!
An amazing thing happens when you add one or two more items to each sale and increase your average dollar sale…
Do you know your Average Dollar Sale?
It’s a simple thing to work out and usually surprises most business owners that I talk to…
The figure is usually lower than they would have thought…but it’s an average.
Let’s look at why this can have such a dramatic impact on your business.
Most business owners focus their marketing energy on winning customers. However, increasing your average sale of business is vital to the long-term health and profitability of your business.
So let’s talk about how to do that..
You see, people often won’t know or won’t think about other items or services that might add to the first product or service they intend to purchase and so they’ll need you to make suggestions. Suggestions that would increase the average sale for your business.
After all, customers come to you for help and guidance. It’s important, then, to let them know about all their options, including additional services or products that can add to their original purchase.
Every time you fail to do that, it’s a sales opportunity gone begging!
You paid good money to get that phone to ring or that customer to inquire. It’s important to make the most the effort for your customers and your business. And most businesses frequently let the customer come in, select what they want, and leave. Many do so without making any suggestions about what might add to the original purchase.
In fact, increasing your average sale makes that transaction all the more profitable. You see, the cost of winning that new customer was already covered in the original purchase item. Anything over and above this is a plus—profit for you.
So what is your ‘average sale’ ?
Simply, it is total value of sales divided by the number of customers you dealt with.
You might have turned over $4,286 in the last week. On checking your records, like your order book or the number of transactions recorded for the week on your register, you might have sold to 62 customers.
This would mean $4,286 divided by 62 is your average sale for that week. So approximately $69.13 is the average sale.
Consider for a moment what happens to that weekly sales figure if, by better merchandising or cross-selling additional items, for example, you could increase that figure to $74.60. That’s only an additional $5.47 to each customer, not much by any stretch of the imagination. And yet it takes your weekly turnover from $4,286 to $4,625.50.
Now, this difference ($339.50 per week) might not seem like much of a difference or anything to make a big song and dance about, but think again.
Calculate that difference—$339.50 by 52 weeks—and it’s nothing to sneeze at!
It means an additional $17,654 in turnover. Who knows what it could mean for your business!
This is even more important when you consider that $17,654 is almost entirely profit.
You paid to get the customer to your business anyway and you already had the team to serve them for their original inquiry, so the only additional cost is the hard cost to you of delivering the extra product or service sold at the same time as the sale for the original purchase! Making that additional figure—just $5.47 and $17,654—a very profitable addition indeed.
Our way of doing things is unique and it’s why it produces unique results for our clients…
We would love the opportunity to help you clear your head on what is the right way for you to accelerate your business…
We highly recommend you watch this step-by-step case study of how we grew Beefy’s Pies into a Famous Aussie Icon from a small stressed out bakery into a family owned chain. Click here to get all the insights into their success…
Or if you have heard enough about how we work with our small business owners, then let’s have an off the record chat about your current situation and see what we can do to immediately guide you…click this link to see what time best suits you.
P.S. Ask if our Boardroom Program intake is open for enrolments…It works best for business owners who see the benefit of having us on as their ‘external partner’ so that they are not alone in the day to day decisions of their business.