Leads x Conversion Rate = Customers
Customers x Average Dollar Sale x Number of Transactions = Revenue
Revenue x Profit Margins = Profit
Sugars says that if you improve all five areas that you can influence (leads, conversion rate, average dollar sale, number of transactions, and profit margin), you’ll dramatically improve your business.
In this post, I’m going to give you some ideas for increasing your average dollars per sale:
- Just charge more. (You knew that one would be in here somewhere, didn’t you?)
- Inflation is an average of 3% per year so make sure that your price increases are more than that so that you not only keep up with inflation but also raise your average dollars per sale.
- Never answer a client’s request for your rate with just one price. Offer two or three tiers of service.
- When writing proposals, include the phrase “You might also be interested in” and list a few relevant services or products you also provide. Offer an incentive for them to buy the product or service now.
- Find affiliate relationships that enhance your own offerings and recommend them to clients when you offer your own service.
- Package groups of products or services together and sell them as a single offering. If clients request unbundled services, point out that the bundle offers a greater per-product discount than the individual offerings.
- Don’t start off with increments that are too large. Offer your base price plus additional offerings at small increments above the base price.
- Increase your overall price and offer additional free services.
- In the midst of preparation, mention that it won’t take much more time to also deliver [something else] and offer a discounted price on that product or service.
- Regularly replace your lowest paying client with a higher paying one.
- Include in all proposals the necessity to revisit rates at the minimum of once a year and on average every 6 months. This gives you time to demonstrate your value while also establishing that your rates will increase.
- Schedule time each month to revisit each client’s purchase and make recommendations based on what you assess they need.