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Sales bags

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Your business has been going for a few years, things are settled to some degree and you have accumulated enough financial data to start making some planning sense out of the numbers.

You know the amount you take home isn’t much and you avoid talking about it hoping things will pick up but things are not improving. You note to yourself how easy it is to lose track of what you need to do, crunch the numbers. So get to it and start crunching!

What’s that? You don’t know what to look for, well try these pointers as a starting point.

  • How many sales per week – How many people bought something, then ask how many items on average did they buy? these figures can be useful, if you know that 200 people came into your shop for instance and only 20 of them bought, that might seem a sad number, however if 15 of those 20 purchased 10 items that might make a big difference, especially in a store with higher priced items.
  • The average dollar sale – How much did you average for each sale you made, e.g for each person who purchased, what is the average they pay? If the average is high and you notice the daily takings start off low, then it’s reasonable to expect the next few sales will be higher.

Using the above as starting points you can now see where you have to focus your attention, either you need to get more people in the door, or get more of those currently coming in to buy more. Let’s say 80% of people in the door currently buy, then you need to find ways to get the average dollar value spent to rise. If the percentage of purchases is low then you might need to get the number of visitors to rise. Having both rise would be a big bonus!

In an age where most people are keeping a close watch on their business figures due to having to comply to tax guidelines and most are using accounting software to do so then you can extract lots of data from most of these programs or at least export the raw data to put into a spreadsheet to get the reports you really need.

I have the data what now?

  • More customers – If you need more, then your marketing needs work. Can your ideal target market readily find you? Focus on these people in the best way possible to boost your numbers. What about the level of new customers coming in each week, do many of these people stay or move on, then perhaps the customer service side of the business needs work to retain more of the already existing numbers of prospective customers walking in.
  • Higher average dollar sales – Try up-selling, “Oh if you buy that do you need this as well?” the add ons can be the difference between make or break some times. Try raising your prices, perhaps your prices are already too low (you do research your competitors…Don’t you?)

To recap you either need to be getting more of the right people into the business to buy, or you need to up the value of the sales made. Now search in the rest of our resources to find ways to do just that.

Regards

Steve Gray

Steve Gray - Steve is a business educator - Trainer - Speaker (Steve Gray.biz). You can get his Leadership E Book from http://theleadershipguy.com.au The info provided in these articles is for educational purposes only and is intended as a starting point for you to build your business from, not as specific advice.
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