Sell more to each customer. Now there’s a simple formula anyone can easily understand. But many entrepreneurs and small business owners fail to capitalize on the “sell more now" strategy to maximize their returns. Yet, it’s the easiest way to make more money in virtually any business.
Converting prospects to customers is often a difficult challenge. Moving them from a place of uncertainty and indecision to a “yes - I’ll take it!” state of mind, means using the full complement of sales tools and techniques.
But once your prospect has made the decision to buy, the pressure is off. They’re relaxed and relieved. That's the time to sell more products and services.
It's your golden opportunity to increase revenues, cash flow, and profits with very little additional effort.
Simply by increasing the dollar amount of the initial purchase - by offering discounts or other extra bonuses on quantity buys. What you want to do is encourage the buyer to spend more money through inducements, extras, discounts, and special deals. Make it enticing and you'll sell more goods.
Some customers are happy to buy consumable products by the caseload - rather than single packages - when they could save some money by doing so.
Just look at the success of stores like Costco and Sam’s Club. Many of their products are bundled into quantities that are larger than those a typical family would buy. Simply making this option available means they sell more goods.
Often the price is just too attractive to pass by. People end up spending more cash - just to “save” money.
Once you have a customer in your store, browsing through your catalogue, or visiting your web site, your task is to maximize the value of their visit. In other words, sell more goods and boost your profits.
Make it easy for visitors to buy. Make it easy for them to spend more money than they planned to. Obviously, you want them to do so happily and without regret. After all, you only want satisfied customers.
In fact, you should make it an objective of your business to develop life-long customers. The profit potential of repeat purchases and referrals are simply unmatched. The more repeat customers you have, the less you’ll need to spend on attracting new customers.
You'll sell more products at far less effort and expense. Whatever quantity deals you offer should always be in your customer's best interest. It’s not a matter of unloading excess inventory; it's about offering superb value. Do so and you'll automatically sell more widgets.
Increasing the value of a purchase can be as simple as providing support materials or accessories that are natural and convenient additions to whatever the customer is buying. For example. . . an electrical supply store could offer booklets that guide homeowners to safely carry out minor repairs and installations themselves.
A sportswear retailer could offer socks and underwear in addition to their full line of outerwear, as extra accessories at the point of purchase.
Self-development author, Anthony Robbins offered a video at a substantial discount with every package of “Personal Power” audiotapes or CD’s sold. The video offer was only introduced after the initial sale had been made. This proved to be an effective technique for increasing the average cash value of a purchase. Offer additional value at the “moment of truth" and you'll sell more now.
Scaling down the price-per-piece according to the amount purchased also helps to stimulate additional volume purchases. This works well with products that have large profit margins and where customers can easily justify getting more than one, as is the case with consumable products and gift items. Give buyers an extra advantage on quantity purchases and you will sell more. One local entrepreneur sells single bottle wine stands at local fairs and shopping mall kiosks.
This product is nothing more than a single piece of wood cut on a sharp angle with one hole drilled through, on the same angle. The weight of the bottle balances the board. It’s a novel idea – one that captures people’s attention quickly.
This savvy marketer sells one wine stand for $5 - or two for $6.50. He sells far more packages of two, than he does single units. Why? It’s such a great deal, few passers-by can resist. An extra buck and a half is mere pocket change and there’s always someone the buyer could give it to. It’s too difficult to ignore something like this.
Think of supermarket pricing. While shopping for groceries yesterday, the price of bundled green onions were clearly marked at - 3 for 99 cents. There was no price listed for just one bunch. Guess what? Most people that were buying green onions yesterday, took 3 bunches.
Perhaps it was the perception that this “special price” was only available on quantity purchases. People often assume that they’ll get a better price (per piece) on three, than just one. Here’s how the thinking goes. “ I might be charged 50 cents for one bunch. Buying 3 gives me each for just 33 cents. That’s better value, so I’ll take 3 bunches”.
Another way to encourage customers to spend more is by offering an attractive discount on a second, or third similar product.
This could work well for businesses whose customers would like to buy more than one. A good example would be a ladies shoe store. This kind of business could significantly increase sales by offering a second pair of shoes at 15% - 20% off.
What could you do today to increase your revenue, cash flow, and profits? Could you sell more today by applying any of these ideas?
Robert Boduch is an author of dozens of best-selling books, reports and articles on the art and science of selling. A free newsletter targeted at anyone interested in selling more of anything is available at http://www.makeyoursalessoar.com