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Average Sale

Definition – your average sale is simply the total value of your sales divided by the number of customers who purchase from you.

The best example of increasing your average sale is when you walked into any McDonald’s, order a Quarter Pounder, and the clerk would invariably ask, “Do you want fries with that?” When customers got used to answering ‘Yes’ they then asked “Do you want a drink with that?”, or “Do you want a dessert with that?”. Each yes answer adds another £1 or more to that particular sale which accounts for millions of extra pounds their pocket each and every year.

The same strategy is important for everyone, especially start-ups who haven’t yet built a large customer base. You need to coax as much money as possible from each person who visits you in person or clicks on a product on your website.

The simplest way of doing this is to increase your prices, yet many people are reluctant to do this because they believe that this will lose them money. In reality most people won’t even notice and if you are working on a low profit margin, because you always discount, then raising your prices by 5% could make a huge difference to your profitability. Even if you lose a few people you will still end up making more money by working less so ask yourself “do you want to work harder or smarter?”.

Other ways are:

  • “up sell” to higher priced goods
  • “cross sell” other products or services in addition to the customer’s original choice.
  • “bundling” will make your products and services appear more attractive and create a higher perceived value.
  • Signage, ticketing, traffic flow, and point-of-sale displays can increase your average sale if done well.
  • Providing educational information about your products or services, testimonials or brochures, can help build customers’ confidence and increase the average sale value.