For a new startup business, the mission is to obviously grow your business. Often times business owners assume that growing your business by increasing the number of customers you have is the best strategy. However, basing your sales off of the number of customers is more time consuming and demanding. In addition, it is the more expensive option as it requires an increase in your marketing budget.
In all actuality, it costs less to sell your current customers more than to inquire new ones. You can reach your goals faster and with fewer clients by increasing your average transaction value. For example, adding additional accessories to your store from www.wholesaleforeveryone.com is a simple way to increase your UPT (units per transactions).
If you are the owner of an online shop looking to increase your net profits, below are four techniques you can use to reach your goals to increase your sales with fewer customers.
Most consumers purchase based off of what they feel the value of a product is to them individually. Therefore, clients are willingto spend more money for most products or services as long as they feel they’re getting a better value. So if you are offering exemplary customer service or offering a better customer experience than your competition, you can raise your prices. Customers will feel valued and this will set your business apart from the competition.
2.Point of sale promotions
This sales tactic has been around forever using less effort, expense, and incurs very minimal stress on you. It is why at the checkout counter of a grocery store there are magazines and candy or at a retail store, there are small accessories at the cash wrap. By offering additional products at the point of sale, you can increase your units per transaction and the average sales per transaction. This “trick” is often appealing, as a customer is lured in on an impulse. Point of sale promotions addsup fast, especially during times of holiday and gift-giving.
“Upselling is a sales technique where a seller induces the customer to purchase more expensive items, upgrades or other add-ons in an attempt to make a more profitable sale” which adds value to the customer. For example, when you are at a restaurant, you order a burger and they ask you would you like to add French fries and a beverage with the burger. What does the average person answer? Yes. The French fries and beverage complement the burger, adding value to the overall dining experience. Again, by upselling you are not accruing any additional expense, nor does it require more time and effort.
One of the most recent businesses that has capitalized off this and their company’s bottom line is Kylie Cosmetics and her Lip Kits. Kylie Cosmetics combined two individually desirable products, lipstick and lip pencils that are usually sold separately, that offered customers a complete package for a single fixed price. Obviously, lipsticks and lip pencils naturally compliment each other so for a customer to purchase them it is a no-brainer. This is a perfect example of offering value to your customers, compared to buying the products individually. This is why Kylie Cosmetics has continued to dominate and grow, increasing their net profits.