6 EASY WAYS TO INCREASE SALES AND PROFITS
As business owners faced with increasing labor costs and other expenses, such as the cost of goods, we’re always challenged with how to make our businesses more profitable. It’s really just basic math, right?
Increase sales. Reduce Expenses. Sounds so simple, doesn’t it? It can be. Here are 6 easy ways to increase sales and profits:
1. INCREASE PRODUCT/SERVICE KNOWLEDGE TRAINING
One of my basic business philosophies is “take care of the customer and the rest will fall into place.” One of the best ways to empower your team to take care of customers it to ensure they are knowledgeable about your products or services. And, luckily, training doesn’t have to take a lot of time or cost a lot of money. Often all you need is 5 or fewer minutes. Some ideas include:
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Videos
Videos can be a great source of knowledge for your team.
Videos can be a great source of knowledge for your team. And, you can find them on multiple platforms. Your suppliers and the manufacturers you represent may have videos on their websites that you can access. Another great source is YouTube. Simply search for the topic, skill or item you want to provide training on and you’ll probably be surprised at all the options. By utilizing videos, you’ll ensure that your team members each get the same information. This is very important when training multiple people at various times. I utilize this method weekly and each team member watches the training video at their convenience. -
Start of Shift Meetings
Some businesses will start each shift with some type of information to staff. If you do this or would like to do this, you can use this time to share product or service knowledge. It can even include demonstrations and handouts. -
Peer Training
Share the responsibility of training by having your staff take turns learning about something and sharing that knowledge with others. This can be done in small groups or one-on-one depending on what works best for your business.
2. OFFER A PRODUCT OF THE DAY OR WEEK
If you operate a retail business, offering a product of the day or week is a great way to increase your average ticket total. Having the items at the check out counters and training the cashiers to ASK for the sale is the key to success with this method. Items that work best are things that have broad appeal. You may even pick items that you’re over-stocked on or that you plan to clear out soon. Often you don’t even need to discount the item but it will definitely help sell it if it has been discounted.
3. ENCOURAGE GIFT CARD PURCHASES
Gift cards are great to sell ecause many gift cards and selling them helps introduce your business to new people.
Gift cards. Businesses love selling them. Why? Because many gift cards don’t get fully redeemed. Plus, selling gift cards will often introduce your business to new people because your customers give them to their family and friends. You may even consider offering special coupons or gift cards to those purchasing gift cards. An example is offering a FREE $5 OFF gift card or coupon with a purchase of a $50 gift card. The customer can keep the bonus gift card or coupon for themselves or use it as a gift! Either way, it gives your customers an incentive to purchase gift cards.
4. SCRUTINIZE EVERY EXPENSE
Reducing expenses is so gratifying. I’m sure customers ask you for discounts all the time. Have you ever asked your vendors for discounts? Why not? They generally won’t offer them if you don’t ask. If you call a vendor and honestly state that you enjoy doing business with them but are looking for ways to cut expenses and wonder if there are any discounts or programs they offer that you may not be aware of, you’d be surprised at what you may be able to save. Often they do have discounts or programs that they’ve never offered you. Sometimes they may value your business enough that they’ll offer you a special discount. Sometimes you may have to switch vendors. For example, you may get a better rate for phone or internet services by switching service providers.
Another way to reduce expenses is to scrutinize some of the services you’re using. Sure, you probably are not going to get rid of your phone or internet service. That wouldn’t be smart! However, do you need someone to wash your windows every other week or could your staff handle that task? Do you subscribe to business coaching services, advertising agency services or other services that you really don’t see a benefit from?
When analyzing your expenses, ask yourself:
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Is this helping me make money?
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Can someone do this in-house?
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Can I get this at a reduced rate from the current provider OR can I switch providers and save money?
With every expense, you reduce, feel free to do a little happy dance! And, if you don’t have any rhythm just pat yourself on the back or give yourself a high-five! You deserve it!
5. ROUND-UP PRICES
Evaluate your products or services that are not price-sensitive and determine which prices you can round up.
When was the last time you raised prices? Some businesses will raise prices across the board on everything at the beginning of each year. I don’t suggest doing that. It may be too noticeable to your customers. Also, you probably have some products or services that are price-sensitive. In other words, to remain competitive you need to keep some prices at a certain price point. However, look at your products or services that are not price-sensitive. Do you have products that are priced at $22.49 that could be raised to $22.99 or even $23.99? What about your best sellers? Do you have something that’s only $2.79? Your customers will probably not notice if it’s now $2.99 if it’s not a price-sensitive item. And, if it happens to be one of your best sellers, this simple $ .20 increase could add a lot to your net income. Whether you have products or services or a combination of both, look at your prices more than once a year and round-up those prices that you can. You may even markup different departments at different times of the year.
6. BUNDLE PRODUCTS OR SERVICES
A great way to increase your average ticket total is to bundle products or services. For example, if you own a jewelry store and someone buys a ring and necklace, you may offer a discount on the matching earrings. Another example is a tire shop that offers a discount on a tire alignment service with a purchase of four new tires. There are so many ways you can bundle products or services! You can even offer different bundles at different times of the year or month to vary your promotions.
Which of these 6 easy ways to increase sales and profits are you going to start with? Share your comments, questions and ideas in the COMMENTS section below! Let’s get our creative juices in order to increase sales and profits!
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Sondra Kirtley, MBA, is an entrepreneur who owns and operates a retail and service business in Eureka, California. Known for her helpful nature and small business expertise, Sondra founded SmallBizpathway.com to share tips and experiences with other small business owners.
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Very good points! Businesses don’t have enough staff meetings….They are really conducive to business growth.
Communicating with staff is important! And, it can be a great way to gain new insights and ideas!