Increase the Average Transaction Size
Increasing the average transaction size will increase sales revenue. For example, a 20% increase in average transaction size will result in a 20% increase in total sales revenue.
To implement this strategy:
- Change the product or service mix – i.e. add higher priced products and/or reduce lower priced products.
- Bundle products or services that complement each other.
- Upsell – Do you want fries with that?
- Increase the amount of value you provide and increase your prices.
- Provide staff with training on why products or services go together and how they add value to the customer.
- Offer a premium version of your product or service.
- Provide employees with bonuses for meeting sales targets based on transaction size.
- Display impulse purchases and gift cards near the cash register.
Offer quantity or bulk discounts.
- Educate customers on your full range of products or services.
- Limit the initial selling price increase to 10%, and monitor the effect on sales, gross profits, and net profit.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2