How much do you measure? What is the average dollar sale per week? Per hour? Per salesperson? Per product? Per customer? There are so many opportunities for learning and improvement when we measure and strategize this metric in the 5 Ways.
You will have highs and lows in transaction amounts, so it’s important to track your average dollar sale on a regular basis. The improvement of this metric lends itself well to sales contests and other measures of Team performance. It is affected by changes in costs of goods, sales follow-up, cross-selling, add-on selling, new product introductions, etc. Because it is an average, albeit a weighted one, it is easy to calculate. Simply divide the sales volume, in a date range, by the “aspect” (customer, product, invoice, etc.). One of the most obvious ways to improve is to ask your customer to upgrade. McDonald’s has found that 3 out of 10 customers will upgrade if asked. The key is to ask and it costs virtually nothing to ask. Another mistake most businesses make is assuming that their customers know all the products and services offered. They don’t and, in most cases, would be glad to give you the business on these ancillary products and services if you point it out.
Brainstorm ideas to improve your average dollar sale at your next Team meeting. The “cost” is negligible and the potential rewards are great!