Most retail business models are pretty straightforward, they get paid when something is sold. Be it products or services, the fact is, there are only 3 ways for Retailers to increase sales. No matter how creative you may be in your marketing, every strategy is in some way related to one of these 3 methods.
We are not talking about other incomes methods from miscellaneous activities or cost saving methods to increase margins. But purely on how to get more sales from what you already have.
Here are the only 3 ways for Retailers to increase Sales:
1) Increase Prices
If you sell your product or services for $10, simply increase the price to $12 to increase sales. Assuming if all else stays the same of course. Customers stay loyal to you and continue to buy your product or services. In fact, we see this almost everytime due to inflation. Remember QB House?
Pricing strategy is a very important aspect for every Retail business. You need to know your bottom line and your value proposition in order to maximise your returns. Take 7-Eleven for example. With the right value proposition, the same product can be sold at a premium and people will still buy them.
It’s not always about keeping your prices in check with your competitors. Many great businesses fail because their prices can’t keep up with their bottom line. Seat back and focus on your value instead and don’t be afraid to charge what is right for your business.
2) Get more Customers
More customers equals more sales! Most marketing strategies focus on this to increase sales for their business. You may be doing flyers, advertising or whatever gimmick you are doing, the whole idea is to generate more foot traffic and get more customers.
That said, the real challenge for all marketers will be how to spend the least amount of money to get the most amount of traffic. Big budget advertisements in major media channels aren’t for everyone. You need to know where to find your customers and focus on the most cost effective manner to reach them.
One effective way used by many online businesses now is referral marketing. Just like Grab & Uber, simply reward your customers for referring a friend. If done right, your customers will be the best sales team you will ever hire. At SoVou, we’ve created a referral marketing system for you to do the same for your Business. Leverage on the power of word of mouth to grow your business.
3) Get Customers to buy more
If a customer asks for something, recommend him something better or extra. Increase sales by simply asking! Yet many businesses are not doing this because they don’t want to appear as hard selling their customers or their staff are just not trained to do it.
There’s nothing wrong with recommending customers something better or extra. Most customers won’t know exactly what you have or what they want. That’s what your staff is there for – to inform them about it. Just don’t force it down their throat if they reject you.
Take McDonald’s for example.
Want a burger?
Would you like to get a meal instead?
Would you like to upsize?
If you never ask, you’ll never get it. But by simply asking, even if only 10 customers take up your offer and buys $10 more everyday. That’s $3,000 increase in sales every month. On McDonald’s scale, imagine how much more are they making every month up selling their customers. Take some time to look into your own business and come up with your own upselling strategy today. It’s definitely good to have one.
No matter what kind of retail marketing strategies you apply, it should fall under one of these 3 categories. If it doesn’t, put some thought into it to figure out if it really does make you more money. Some examples:
- Premium Pricing – Increase Prices
- 20% off – Get more Customers
- Buy 2 Get 1 Free – Get Customers to buy more
Not everything is about money though, if it does create value for your customers sometimes it’s worth investing. It’s always good to get your basics right first before investing in any marketing or even starting a business.
- In F&B? Great food is expected
- Selling products? Great products is expected
- Providing services? Great services is expected
Probably nice ambience & environment too to keep your customers happy & comfortable. Retail is not a hit and run business. You’ll definitely need repeat customers to stay in business.
Everything expressed in this article is my personal opinion and might not be applicable for all businesses. Please share with us your ideas and thoughts too so we can grow & learn together!
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