All Things Retail: 5 Ways to Grow Your Sales, Today!

Increase your Average Order Value (AOV) by 10% or More!

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5 Ways to Grow Your Sales, Today!

Let me guess. If you own, lead, manage or work at a retail business, the 3 words that are spoken more frequently than any others are “How are Sales?”. If this isn’t the case, it should be.

We all know that profits are the lifeblood of every business, but you cannot grow your profits without improving your sales. Yeah, I know that cost-cutting efforts can bump profits over the short-term, but that’s a finite tactic that cannot work forever. Sales must increase, week over week, month over month and year over year, for your retail business to thrive. Hence, the routine uses of the phrase “How are Sales?”

There are an infinite number of ways to improve your sales, from the classic “Right Item, Right Price, Right Time” to providing great customer service, utilizing effective marketing techniques, maintaining proper in-stock levels, integrating your physical & online shopping experience, providing new services like BOPIS, shipping, delivery, personal shopping…you get the idea. Each of these tactics are important and they all will work if you do them right, but most will take some to implement and produce results. If you are like me, you can be a bit impatient at times and you love immediate results. So, let’s give you some ways to increase your sales today!

Check out these stats:

“Over 90% of people who shop today make occasional impulse purchases that they didn’t intend to buy initially.”

“61% of consumers ages 18 to 29 routinely buy impulsively for themselves.”

“Over 40% of consumers spend more money than they had planned in stores, while 25% reported online impulse shopping.”

The common theme? Customers often buy on impulse and spend more than they intended. What drives this incremental spending? To a great degree, how your store is merchandised, how your product is displayed and how you use different pricing strategies. If you can leverage this impulse spending opportunity, you will (not “can”) see dramatic increases in your average sale per transaction, or average order value (AOV). How much will my AOV improve you ask? With a comprehensive “impulse merchandising initiative” in place, I have seen AOV increases that range from 10% to as high as 30% or more.

Meaningful? You bet. Some quick math in an example scenario at a conservative 10% AOV bump:

  • Current AOV: $20 >> 10% Increase in AOV: $2 >> New AOV: $22

  • Orders Per Day: 100 >> Old Sales $ Per Day (100 x $20 AOV): $2,000 >> New Sales $ Per Day (100 x $22 AOV): $2,200

  • Days Open Per Year: 360 >> Old Sales $ Per Year (360 x $2,000): $720,000 >> New Sales $ Per Year (360 x $2,200): $792,000

  • Sales $ Increase: $72,000 (at a 50% margin, $36,000 goes right to the bottom line without spending a dime)

So, let’s go! Here are 5 ways to grow your AOV and your overall sales, starting today!

  • Multiple Pricing: 3 for $5; 4 for $9; 7 for $12; no shopper can easily figure out that they are paying per unit, but they always feel like they are getting a great value. Rarely will a guest buy in multiples lower than the stated price, which means that often, if you have an offering at 4 for $9, you will generate an additional $9 in sales. Best practices:

    • Choose broad appeal items that might interest most customers checking out. A new flavor of lip balm, a doggie treat in a cool shape, a novelty unisex keychain, a brainteaser puzzle, etc. Keep the price under $10.

    • As guests begin to checkout, the cashier should pick up the item being suggested and say something like “check out this cool new item we just received. It’s cookie dough scented lip balm” and offer to hand the item to the guest to smell, try, feel, etc. If the guest shows an interest, the cashier should say “it’s only $4, would you like one?” and you will hopefully gain another sale.

    • Be sure to keep some selling stock at the point of sale, so if the customer decides to purchase one or more, the cashier has it right there to ring up and bag.

    5 easy steps. 5 ways to impact your sales today. Go for it!

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