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Business Mentor Australia: How to Boost your Average $$$ Sale (Part 3) …

We’ve been reviewing some strategies ActionCOACH uses to increase the Average $$ Sale in any business, and we’ll continue to look at some key strategies to make this happen as easily and effectively as possible …

Below are some more ways to increase the value of each sale in your business:

Use a Questionnaire …
Dig as deep as you can.  Make sure you ask enough questions to leave no stone unturned.  The more questions you ask the more chance you have of finding another need or want that you can fill.

Also, if you’re unsure of any additional products or services that you could sell, a simple questionnaire can be effective.  Use it to ask your customers what else they would like you to sell.  Don’t limit yourself too much.  Ask the customers to get a little creative … who knows, there could be a whole new opportunity just waiting to be suggested.

Hints and Tips …
1. Make your questionnaire simple but effective as a sales tool.
2. Offer customers an incentive to participate, or just explain how what you’re doing will help them.
3. Fill it out on the spot with you acting as a sounding board, don’t be afraid to ask more questions to dig deeper.
4. Ask for their suggestions, and act as quickly as possible.

Allow Payment Terms or Financing …
This allows your customers to spend more by giving them the chance to pay it off over a period of time.  You’ll find this is particularly beneficial if you’re up selling them to a product that’s beyond their original budget.

Hints and Tips …
1. Ensure they are credit worthy.
2. Use it as a real selling tool to close the deal.
3. Ask “How much can you afford a month?” and then work out a payment plan to suit them – this makes it very hard to say NO.

Carry Exclusive Lines …
By stocking items that can’t be purchased elsewhere you can charge higher than normal prices.  The advantage is that your customers can’t shop around and get cheaper quotes.  This is a great way to avoid ‘C’ and ‘D’ grade customers asking you for a discount.

Hints and Tips …
1. If people won’t pay your price, let them go … other customers will.
2. Exclusivity is worth a lot, so don’t be afraid to lift your prices.
3. Use the uniqueness of your product as a selling tool – people love to have something others don’t.

Rearrange Store Layout and Merchandising …
Make sure your products are on shelving that’s clearly marked with Bin Labels.  Not only will that assist your customers when purchasing, but it will also help you when re-ordering stock.

Stock should be presented clearly with no broken packaging.  Fast moving items should be placed on or just above eye level with slow moving items placed just below eye level.  End aisle displays should tell a story with add on sale items clearly visible.

Make sure your most expensive items, or items with the highest margin are in your highest traffic areas.

Hints and Tips …
1. Top selling items should be displayed at eye level.
2. Slower moving items just below eye level.
3. Make sure all products are clearly marked and cleanly displayed.
4. End aisles should be harnessed with ‘specials’ and impulse products.

More to come …

Business Mentor Australia: How to Boost your Average $$$ Sale (Part 2) …

In our previous ActionCOACH post, we talked about the importance of upping your Average $$ Sale, and in the next several posts, we’ll offer specific strategies to make this happen in YOUR business.

Here’s some additional suggestions:

Up Sell …
This can be done when you have a basic and deluxe version of a particular product.  It works by selling your customer a more expensive version of the product they’re looking at, based on its benefits.  When up selling it’s important to explain how the more expensive model will better suit their long term needs.

Hints and Tips …
1. Clearly spell out the BENEFITS of the more expensive option.
2. Put the price into perspective – “Sure it might be a little more now, but in the long run…”
3. Keep your options open…don’t oversell the dearer product as someone may be on a very tight budget.

Cross or Add On Sell …
A technique that is successfully used by many large companies (see McDonald’s above).  Can be very effective when selling products or services that are used in conjunction with others.  A good example of this would be selling your customers a watering system when they buy a quantity of lawn seed.  Or try buying a suit without the sales assistant offering you to try a vast array of ties.  You can also cross sell associated products or services on a commission basis with another company.

Hints and Tips …
1. Always offer more than the customer is initially looking for.
2. Offer a package deal if they buy something else as well.
3. Don’t over pressure people, after all you want them to come back.

Down Sell …
Show them the highest priced item first and then the one just a little more expensive than they’d planned seems extremely cheap. This can be really effective when your customer can’t afford a more expensive item.  Rather than attempting to only sell them a higher priced item, and as a result losing the sale altogether, you simply sell them a similar product that fits just above their budget.

Hints and Tips …
1. Wait until you are absolutely sure they can’t afford the premium product, you just might sell the most expensive item each time.
2. Try and make it sound as though there is little difference between the two products anyway.
3. If you haven’t got a cheaper version, try and sell them something else.

Use a Checklist …
Similar to Add On Selling, you simply run through a checklist with your client whenever they purchase a particular type of product.  This list should be prepared in advance and used with as many different products as possible.  For example if a customer buys a tin of paint, run through the list to see if they need brushes, thinners, drop sheets, stirrers, etc.

Hints and Tips …
1. Make sure every team member has the list.
2. Check to make sure it’s being used with every customer.
3. Have a reward system in place that acknowledges team members who make additional sales off the list.
4. Test and measure – and if it ain’t working, change the questions.

More simple yet effective strategies in upcoming posts!

Business Mentor Australia: How to Boost your Average $$$ Sale

Here are some great ActionCOACH tips to boost your Average Dollar (or Value) Sale …

The good news is … this is all less of a mystery to most business owners, but precious little is usually done to increase it.

Some customers might spend $500 while others $23.50 – the average $ sale is just that:

The AVERAGE $ spend from everyone who does business with you! 

All you need to do is divide what’s in the till with the number of transactions you’ve made.

Just like McDonald’s staff always asks, “Would you like fries with that?”

You need to look for ways of increasing your average $ sale. 

Even though most people say NO to the fries, think of the millions of extra dollars they make a day from those that say YES. 

Now think of how a similar strategy could unlock another goldmine for you.

The key is remembering that it only takes slight improvements to make a drastic difference to your profitability. 

These customers are already doing business with you and any little extra you can add on is all cream.

There are subtle and not so subtle ways of doing it.  Here’s the complete repertoire for you to choose from…

Increase Your Prices …
The most obvious way to increase your average dollar sale is to put up your prices. 

This method should be approached with some caution, although most often you will have more fears about a price rise than any of your customers. 

If you intend to increase your prices substantially it’s best to gradually phase the new prices in over a period of time.

Hints and Tips …
1. Just do it … add 10% across the board today.
2. For big rises, phase them in slowly.
3. When you get the 5 to 10% of people who object, shift their focus to the quality of your product and the benefits it offers.
4. Check what the competition are charging.
5. Be prepared to offer a little extra service and follow-up.

More strategies to come!

Business Mentor Australia: The steps to successful sales

Avoid the sales peaks and troughs experienced by the average salesperson by building an individual selling system that will guarantee you results …

Goals
Without clearly defined goals, measured over a specific time frame, you will achieve very little. When setting your goals consider your income, lifestyle and requirements.

First aim to improve your last years’ income by a specific amount, or, if you are new to sales, aim to achieve as close to the top sales person in your team as you can.

Prospecting
The level of success achieved by salespeople will always be determined by the number of customers self generated, that is other than floor traffic or telephone enquiries generated by your advertising.

Put a system in place to regularly find new customers from referrals, past customers, etc.

Build up your database of loyal customers that you can sell time after time.

Qualifying
Qualifying is the factor which has the greatest impact on the management of your time.

You have to become skilled in sorting prospects. The greatest stress in your career will come from working with unqualified prospects, be it someone who refuses to buy at a fantastic price or someone who is not ready, willing and able to buy at all.

The Sales Process
The key to a successful sale is the ability to build rapport and trust with each customer.

Meet, greet and build rapport, settle them on a model, garment or product to demonstrate. All the time check by asking trial closing questions, then ask for their business.

Remember to sell the benefits of your product speaking in their own linguistic modality.

For example, talking to an auditory person about a car engine you would say: “Listen to that engine, doesn’t it sound great?”… or to a visual person your could say, “You see how smooth that engine is”…

Follow up
This is the first step to the next sale to your customer or to obtaining referrals from them …

First a thank you letter, then a 7 day follow up call followed by a call at least every 9 days.

This will ensure a steady stream of referrals … all you have to do is ask!

Remember …

Do what you most fear to do, and you will have the results you most want to have …

And if you want to explore ways ActionCOACH  can help you get more sales, contact an ActionCOACH Business Coach near you today.

Business Mentor Australia: How to use scripts to ensure consistency in customer service

Is your first reaction like that of many of our clients – scripting doesn’t work, scripting is too artificial, scripting doesn’t take into account different personalities?

As the world’s number one business coaching firm, we’ve heard just about every excuse as to why scripts won’t work; but, as we wean clients onto the idea and they see their bottom line increasing, converts are made.

Here’s how to get started.

The four main areas to consider when writing a script are:

a) Target Market – be very clear who you’re trying to reach.
b) Process – some of the more expensive products and services may require several steps before a sale is made.
c) Urgency – you must give people a reason to act now.
d) ”You” Focus – your script needs to be focused towards the customer.

Within the script itself you then need to look at:

a) Greeting – Get this right as it will set the tone for what follows.
b) Outline the reason for your call/visit and get permission to continue – e.g. “Would it be OK if I outlined the reason for my call today?” This step applies when you’re the one making the first contact.
c) Open-ended questions – you must ask questions that can’t be answered by yes or no.
d) Get agreement – you need to get feedback from the customer. Ask rhetorical questions that will get them to say yes – e.g. “So it sounds like you’d benefit from A, B and C, that’s pretty good, isn’t it?”
e) Deal with objections – this is part of the process! Get the customer to elaborate, acknowledge that what they’re saying is true for them at the time and then come up with your standard replies to known objections.
f) Close and take the next step – “Would you like to pay by check or credit card?”
g) Use transition phrases/temperature checking phrases like, “How does this fit with what you had in mind?,” “So from what I understand, you want A, B and C. Is there anything else?”

You will end up with a script that is really effective as a sales tool.

More importantly, your entire team will have a framework to follow, which means your customers will be treated in a like-minded fashion regardless of who speaks to them.

This, in turn, enhances the perception of excellent customer service.

An added bonus (if you needed another one) is that any new team member will be productive much more quickly.

So now you know … it’s up to you and your team to go make it happen!

Business Mentor Australia: People plus systems equals great sales …

When you ask many of the greatest salespeople in history what their secret is many would answer – personality.

But when asked how to quantify and teach personality to others, these super salespeople are often stumped.

Teaching great sales involves a major re-education and a focus on systems that make sales simple.

Sales scripts not only increase the sales of top performers but also produce amazing results for the entire team.

One rule of thumb, which can be used in selling and in life, is that what you can measure you can manage and grow!

The ultimate test of a superior salesperson is how consistent their results are and how consistent the results are for the entire team.

Using a sales script achieves this consistency and makes the training of new team members simple and effective.

By introducing a sales system like a script, you can then measure conversion on a daily basis and your sales will automatically increase – guaranteed.

So, exactly what does a sales script look like, how do you write one and how is it used?

Let’s look at this now.

A sales script is a documented, methodical, learnable, effective system of selling your goods and services.

It is a written process on paper designed to give the salesperson control of the call (while the customer “feels” in control) and create a desired result – the sale!

It is written by your number one salesperson, in answer to the question – Exactly what do you say to a prospect to get them to buy your product?

You may even choose to reward your top salesperson for doing this by offering them a great incentive such as a percentage of extra sales.

Let us briefly outline key parts of the ActionCOACH sales script.

Obviously, there are differences between sales scripts used on incoming and outgoing calls; however, we will just detail some of the universally used key ActionCOACH selling lines taken directly from our sales scripts!

The opening:  “Could I just outline the reason for my call?
Permission:  “Would if be okay if we go through the call that way?
Rapport Building:  “What’s your biggest challenge right now in that area?
Below Waterline:  “What’s most important to you in …”
Paraphrase:  “Based on what you just told me, it sounds like …”
Temperature Check:  “How does that fit with what you had in mind?”
Secure the Sale:  “Would it be okay if I give you the steps in getting that process under way?”
Conclude the Encounter:  “Congratulations and bye for now.”

A script can be read, learned and must be practiced, used, measured and improved (if needed) to increase conversion rate of prospects to customers of all the team.

Imagine taking the guess-work out of selling once and for all by using a system which makes your sales results less people dependant and more system dependant!

ActionCOACH is a business coaching and training company that works with small to medium sized business educating the business owner how to improve the sales and marketing in their business.

 To learn more about how ActionCOACH can help you increase sales in your business, contact an ActionCOACH in your area today.

Business Mentor Australia: Want to know how to sell? All you have to do is ask!

When it comes to sales your customers quite literally have all the answers.

Have you ever answered a question with a question?

Would that be making a difference to your conversion rate?

The answer to the latter is most definitely yes!

Asking questions not only increases your conversion rate, but builds rapport with your customer and ensures that the sale becomes their idea and not yours.

Asking questions also means active listening.

You can ask questions about your customers work, business, kids or hobbies but make sure that you are listening with sincere interest.

It may even be helpful to note down some of the answers – such as the names of their kids and personal interests for future communication.

By asking questions and listening, you are building rapport and attaching importance to their conversation.

Also, by asking questions you are remaining in control of the conversation.

Once you find yourself doing all the talking you are no longer in control. Just remember that the person asking questions sets the direction for the conversation.

If the customer is dominating the conversation by asking you questions make sure you answer the question with a question.

However, try to vary the questions that you ask.

You may remember from looking after your own children or babysitting that being asked “but why?” over and over again tends to get a little monotonous.

Questions can guide consumer interest, discover a need and give accurate information.

There are two commonly known types of questioning – open ended and closed questions.

Building Rapport and Qualifying
Open-ended questions are an excellent way to ensure customer involvement in the conversation and are a key to identifying not only what they need but a lot about themselves.

You can use open-ended questions to build rapport, to find a need, to discover a customer problem and find the right solution.

In journalism, there are six key questions used in the interviewing process which is as equally useful in sales … who, what, where, when, why and how.

Here are a few examples of open-ended questions which are very useful:

• Who are you buying the product/service for?
• How often would you use the product/service?
• What features were you looking for in this product/service?

This type of questioning yields a lot of great information from your customer and helps you determine which product/service is uniquely suited to them.

Closed questions tend to get one word answers “yes” or “no.”

They can be used to gather information quickly – not unlike a check-list. Using closed questions can also confirm a buying detail and help confirm the sale.

By using questions you are encouraging the customer to communicate, building rapport, establishing their needs, directing the conversation, diffusing tension and inviting discussion.

Learning the art of questioning and listening is the key to increasing your conversion rate and well on the way to creating a continuing customer relationship.

ActionCOACH is the world’s leading business coaching company that works with small to medium sized business educating the business owner about how to improve the sales and marketing in their business.

If you are interested in getting more customers, who spend more, more often, call your local ActionCOACH today.

Business Mentor Australia: The power of priorities

There are two things that business people find very challenging:  thinking ahead and doing things in order of importance.

Doing these two things makes the difference between success in business and just surviving. And the same is true for all areas of our lives.

Leadership trainer and author John Maxwell says, “Thinking ahead and prioritizing responsibilities marks the major differences between a leader and a follower.”

Most people have heard of the Pareto Principle, more commonly known as the 80/20 Principle. Roughly stated this says that in most businesses 80% of your business comes from 20 % of your customers.

Other examples of the Pareto Principle are:

• Reading:  20 percent of the book contains 80 percent of the contents
• Job:  20 percent of our work gives us 80 percent of our satisfaction
• Products:  20 percent of the products bring in 80 percent of the profits
• Picnic:  20 percent of the people will eat 80 percent of the food!

So … when it comes to your priorities, 20 percent of your priorities will give you 80 percent of your production IF you spend your time, energy, money and personnel on the top 20 percent of your priorities.

When you do this you are getting a 400% … or a four-fold return in productivity.

Think what this would mean in your business!

Every business person needs to understand the Pareto Principle as it applies to the areas of customers, team and leadership.

In the area of customers, it is vital to identify the 20 percent who account for 80 percent of your business. These are your “raving fans” and strategies must be put in place to care for them appropriately.

For your team, you must identify the top 20 percent producers.

Spend 80 percent of your people time with these people to develop them to their full potential.

In leadership, take an honest look at the question “What do I have to do that no one else can do?”

Remember, a leader can give up everything except final responsibility.

You can decide whether you will be reactive or proactive when it comes to the use of your time.

The question is not, “Will I be busy?” but, “How will I invest my time?”

It’s not, “Will my calendar be full?,” but, “Who will fill my calendar?”

It’s not, “Will I see people?,” but, “Who will I see?”

Do this and watch your productivity and personal satisfaction rise to new heights!

For further discussion on the above strategy or coaching services, you may call an ActionCOACH in your area today.

Business Mentor Australia: How to sell price focused shoppers

One of the most common complaint we hear as a business coaching company from SMEs is, “We can’t compete with the big guys on price.”

The perception in the market place is that people are shopping on price alone. The only reason your customer asks the price up front is because that is what we as business owners have trained them to do.

How many times have you rung or gone into a business not really knowing what model, style, color or features you were looking for and purely asked for the price?

At this point did the sales person come back with “that is $29.95” or did they ask you some questions about what you were looking to use the product/service for? In this instance let’s say it is a kettle.

Now in most people’s eyes a kettle is a kettle; but, they have many different features and offer many different benefits.

So what if the sales person simply said to you when you inquired about price … 

“Just so I can help you best is it okay if I ask you a couple of questions about the kettle you are looking for?”

Would you have answered yes?

Our bet is that the answer would have most definitely been yes! 

The sales person could then ask questions like:

• Are you looking to replace an existing kettle or is it a gift for someone?
• Do you regularly use your kettle or is it rarely used?
• Would you like a kettle with a quick boiling time?
• Have you seen the cordless options that are available?
• Are you looking for something to match your kitchen?
• So what color are you looking for?
• Is it important that it has an automatic cut off when the kettle is boiled?
• Are you after a stove-top option, or an electric kettle?
• Kettles come in different cup capacity; do you require 10 cup capacity or is 5 a better size for you?

From these questions the customer gets the idea that the sales person is genuinely interested in their needs and the salesperson is able to offer options in the most suitable kettles for their needs.

The price is therefore negated. It is just a matter of now asking the customer to buy.

A good salesperson would then ask … 

“Well based on what we have just spoken about there are two options to choose from, model x and model y, which one suits you best? Great, I can either put that away for now or I can process it on credit card for you and have it delivered to you tomorrow – which do you prefer?”

If the option is credit card ask “which credit card is it easiest to process that on?” and make sure the prospect is aware there will be a delivery charge of x amount.

If the option they choose is to have it put away, this gives the sales person the opportunity to get the customers name and contact details. If the customer chooses this option make sure the sales person gets a time frame for them to pick the item up. Be definite with the infinite. If the customer is in your business the sales person then simply takes them to the point of sale terminal and transacts the sale.

This example was based on a kettle, a relatively small dollar item.

How does this apply to your business?

This process works equally well on cars, houses, furniture, service based businesses and any other product I can think of, including funeral homes.

You just need to work out what your customers are actually looking for when they ask for the price, and what’s most important to them in their buying decision!

ActionCOACH is a business coaching and training company that works with small to medium sized business educating the business owner how to improve the sales and marketing in their business.

To find out more about how an ActionCOACH can help you boost sales, contact an ActionCOACH in your area today!

The 2- Speed Economy… Getting into the fast lane

To most of the world, Australia’s economy looks like the shining example for western nations to follow. But with a closer look we can see that not everything is economically rosy.

Australia is a great example of a two-speed economy.

The mining industry has sustained its growth despite recent challenges, but things haven’t been quite as positive in the retail and manufacturing fields, where most small businesses reside.

Thanks to a decline in stimulus spending and steadily rising interest rates, many small businesses are feeling the pinch in Australia.

Major Australian banks have been using small business loans to increase their margins, while taking a harder line on delinquent debts forcing smaller businesses to pay down debt before they are ready.

Fewer and fewer banks are giving loans to small businesses as well. That lack of choice combined with rising interest rates and inflation, have left many small businesses feeling squeezed.

Low unemployement has been great for the general psyche of Australia, but it has led to six recent interest rate hikes as well as inflation that is predicted to reach as high as 2.75% this year.

The good news is that consumer confidence is high, thanks primarily to the fact that most Australians have jobs. The bad news is that, for all the work to be had, fewer retail and manufacturing companies are thriving, leading to concerns about Australia’s long-term economic prosperity.