It’s easier to increase your average dollar sale than you might realize. The main reason is that this happens with an existing customer-one that already knows you, likes you, and trusts you.
Because it’s at least six times easier to sell to an existing customer than a total stranger, here are some common mistakes to avoid:
1. You assume your customer knows every product or service you have available. Most customers are doing business with you in one area and would be pleased to give you the business in a related product or service if they only knew about it. For example, the same insurance agent that handles your car insurance can also sell homeowner’s, boat, motorcycle, RV, etc. Every business has multiple products that complement existing ones and deepen the relationship. All you have to do is ask: “By the way, did you know that we also have…?” You will be shocked at how many say: “I didn’t know you did that!” On average 5% of customers would give their business to a friend. Why not get that 5% increase from your friends?
2. You fail to offer an upgrade. Again, many businesses, including yours, have premium products or services available. At the point in time that your customer decides to purchase, it only makes sense to offer the opportunity to upgrade. Fast-food restaurants proved the wisdom of asking a customer: “Would you like to supersize that?” or “Would you like ____ with that?” A few years ago when I operated a supermarket, we participated in a scratch-off lottery ticket promotion. For two weeks the cashier asked every customer: “Would you like a scratch-off lottery ticket with that?” Our ticket sales increased exponentially versus the previous period. And it costs nothing to ask. What could you offer your customers as an additional up-sell?
3. You offer what you think your customer will buy even if it’s less than what they really need. This is where “pre-qualifying” goes awry. It is usually a function of you or your Team’s limiting belief around sales. I remember the wise advice of a professional fund-raiser who said: “Always be willing to ask for too much.” The reasoning here is three-fold. First, you just might get the higher amount! Second, you compliment your customer by implying that they are financially capable of a higher level. Last, you give yourself a “fall back” that is still a good value for both of you. Increasing your average dollar sale takes some commitment, training and practice.
Make the commitment to improve your business, invest the time and effort to train your Team, and remember that professional salespeople need practice to keep their skills sharp. The effort you put into this will pay dividends both short and long term.
Brad Sugars founded the brand Action International in 1993 when he realized there was a disconnect between business advice and implementation. The answer was Action! Brad Sugars created a business coaching company so that business owners throughout the world can realize their goals in business. Today the company is known as ActionCOACH. To learn more about business, visit Brad Sugars Review blog!