Part 2 of a 5 part series
- Falling profits (before owner’s compensation).
- Falling owner’s compensation.
- Falling or stagnant sales with falling profits
- Rising expenses.
- Cost of goods sold.
- Significant adverse deviations from budget.
Steps to Improve: INCREASING AVERAGE SALE
- Increase the average sale size.
- Use tie-in sales and follow-up sales; the real profit is in repeat sales.
- Package deals increase sales: volume, companion products, larger size, service.
- Make one shot promotions pay off; bounce back sales promotion with order.
- Sell using piggy back promotions with bills promoting your own/others’ products.
- Broaden your market by “bundling” products or services.
- Make the merchandise/services more attractive to the customer.
- Increase sales with loss leaders as bait to bring in customers.
- Print descending dollar balance reports by computer and use them.
- Identify and care for your top (15%) customers/clients with excellent service.
- Identify existing and future clients/customers you want in your top 15%; target them.