Today we’re on Stage 22 where we will explore the fourth element of the Business Chassis – Average Dollar Sale. In this stage, we will discuss how you can improve your revenues and profits simply by focusing on each and every customer you have and giving them the opportunity to buy something extra every time they do business with you. Many call this the McDonald’s approach – “Would you like Fries with that?” Ever heard that phrase?
You can’t get out of a grocery store, a Home Depot, Lowe’s or Target without first “running the gauntlet” of the candy, magazine, snacks, gum, batteries, lip gloss, you name it. What do you think the impact of having those “impulse” items available and accessible would be when you have 1000 people go through your check out counter every day? So you have to ask yourself if an extra $1 on each sale means so much to a big company, why does it not mean so much to those who are smaller? How do you think they got big? They used every opportunity to add to each and every sale. Are you doing the same?
If you are a restaurant you could be bringing out the dessert menu or samples to each and every customer. If you are a landscaper, you could be making suggestions about additional mulch, seasonal flowers, etc. Every business has its version of “do you want fries with that?”.
Here is a real example I encountered recently:
I had the opportunity to vacation on the North Shore of Lake Superior. We were spending a wonderfully relaxing time in Two Harbors, MN taking a break from the August heat in Texas. One afternoon, we made our way to one of the true Minnesota icons, Betty’s Pies. As is usual in summer, Betty’s Pies was packed, even at 3:00 pm on a Monday afternoon. After a short wait, we were seated and immediately greeted by our waitress, Mary Marker.
Mary was the living picture of “Minnesota Nice” and made us feel right at home. Her service was outstanding and we were truly enjoying our time at Betty’s Pies. Mary came by our table and confidently asked: “What kind of pie will you be having today?” Now, my standard response to a question about dessert is “no thanks”. However, we were taken back by her presumption that we wanted dessert. But her approach and enthusiasm left us with no option other than to respond with “the Great Lakes Crumb please”. The result was an immediate increase in our ticket price of $7.98!
Mary had nailed the concept of asking if we wanted “fries with that” without even thinking about it. It came naturally to her. In fact, she did it even one better. As soon as I gave her my choice of pie, she responded with “You want that warmed with ice cream, right?” Who could say no! Of course, I wanted my pie served warm with ice cream. The result, yet another $0.95 to the average ticket price! Our lunch ticket before Mary asked about dessert was $23.04. After Mary’s effective approach of adding value to our meal, our lunch ticket was $31.97 – a whopping 38% increase in our ticket price!
Not only was the pie the best you could find, but I was intrigued by Mary’s natural approach to increasing the average ticket price of each and every customer she waited on. Do your team members behave like Mary at Betty’s Pies? Do you make it easy to “up-sell” your customers? Do you package your products and services to sell bundled items?
If you did the result be a higher average ticket price! There are many strategies you can use to increase your average ticket price.n Simply a 10% increase – from $250 to $275 would have a significant impact on your revenues.
Your Profit Tip of the Day
Think through the many ways you can get each customer to buy just a little more each and every time they do business with you. Measure your results and test the outcomes. Be deliberate in your approach until you find the magic combinations, go-withs, add-ons, or upgrades that will transform your business from a so-so business to a High-Performance business.
Remember, each element of the Business Chassis builds upon the others. So every little movement matters in a big way. Take small steps but be consistent. Build the routine into your expectations. The results will surprise you – and your bottom line will be better off for it!
Here’s to your success in Stage 22. Congratulations on working this stage hard and making this a part of the fabric of your business!
If you’re looking for more success and freedom from your business, join my FREE, private Facebook Group called The Peloton. It’s where business owners like you are learning, sharing and working together to get better every day! Here’s the link: https://www.facebook.com/groups/jointhepeloton/
Come on – join us! And remember, whatever you do, RIDE HARD!
