Monday, June 7, 2010

The Second of Only 3 Ways To Grow Your Business: Part 1

Last week I wrote that, your business, no matter what it sells, can grow in just three ways.

Here they are:

1. Get more customers
2. Get customers to spend more
3. Get customers to buy more often

That's it.

Today, let's look at the second concept in detail: Get customers to spend more.

Once you have a customer, you should do everything possible to get them to spend more money with you.

But you can NOT succeed long-term if you do so from a purely profit-driven motive.

If your products or services are any good, you should seek to sell more of them to customers to make sure that they are being fully served by what you do. From that perspective, it's your duty to make sure they have all that they need from you to get the result they want for themselves.

So. How to do this, exactly?

Here are 3 simple ways to get more money from every sale.

a) Raise your prices

It's a fact: small business owners typically under-price themselves. So, try raising your prices 10% or 20%, then measure the results. You may find higher prices cause more people to buy -- it happens all time.

And, by raising your prices, you will often get customers who appreciate you more and get more use from your products or services ... while causing the price shoppers (who typically complain more and are quick to switch to a lower-priced competitor) to go elsewhere.

Higher prices have a way of making all that happen.

b) Upsell

This is a no-brainer. McDonald’s does this when they offer to “super size” your order with a larger portion that costs more. If a customer asks for your Standard Widget and you believe your Deluxe Model would better serve his needs, offer to “super size” their order with the Deluxe Model. This can turn an average sale into a whopper.

c) Add-on sales

Never let a customer leave your business without asking: “Anything else?” It’s simple. Direct. And always effective.

Need proof? Again, walk into any fast-food restaurant. After you order, they’ll ask: “Anything else?” Or, more specifically: “Would you like fries with that?”

You should do the same. What products or services could you offer customers as “dessert” after they’ve ordered? Always ask: “Anything else?” until the customer says: “No.”

Add-on sales are like free money ... if you ask. But it’s money left on the table if you don’t.

Now. How can God help you with all this?

You'll find out in tomorrow's post.

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