As with many topics, many roads lead to Rome when it comes to increasing sales.
Basically, all measures can be divided into four levers:
- Increase per capita sales
- new customer acquisition
- Increase customer visit frequency
- Higher completion rates
Under these four main actions, there are sub-actions that, both separately and in combination, seize the sales potential in your company and ensure growth.
In our article, we enlighten on thinking outside the box business ideas, we sort the measures to increase sales according to these categories and give you practical ideas.
Calculate sales increase
The strategies were developed and measures implemented.
Now it is time to calculate the turnover made and ideally compare it with the proceeds from the previous period, says Chaktty.
Suppose within the last three months targeted measures to increase sales were used.
First of all, the turnover has to be calculated, according to Businesspally.
To do this, simply multiply the number of products sold by the sales price of the respective product: turnover = products sold * basic price per article.
Suppose 20 smartphones were sold for €500 each. The sale of the 20 smartphones thus generated sales of 10,000 euros.
In addition, the sales value from the previous period is required.
In this case, 15 smartphones were sold for €500 each, so the turnover is €7,500.
Calculate increase in sales
The following formula is required to calculate the increase:
100% / base value * percentage value = percentage.
For the base value, use the turnover from the previous period, in our case 7,500 euros.
The percentage value reflects the increase, which still has to be calculated.
To do this, subtract the old sales from the new sales; in our example with smartphones, the increase is 2,500 euros.
Now enter all the values into the above formula and calculate the increase in sales:
100% / 7,500 euros * 2,500 euros = 33%
Sales could thus be increased by 33%.
Increase sales or rather reduce costs?
As already mentioned, the measures taken to increase sales can ensure that costs continue to rise incessantly, says Techpally Business unit.
It is therefore immensely important that you keep an eye on not only increasing sales but also increasing profits – after all, all measures for more sales should also be profitable.
Advertisements, new staff or the acquisition of new equipment or storage space cost money.
Even if they serve to increase sales and are visibly successful, it may be that nothing is left of the new profit. In this case, only one thing helps: reduce costs to make a profit.
Check all measures and processes to start a profit calculation. Ask yourself which processes are associated with high costs or a lot of effort.
Then check whether the funds used are promising: Is there a profit after deducting the costs? What is the profit?
It is also worth thinking about optimizing processes and resources.
Advertising measures can be used in a more targeted manner, which reduces costs while still reaching the target group.
Digital change also makes it possible to switch off expensive print and television advertising and prefer to rely on online marketing.
Do you often visit trade fairs or visit the branches of your customers?
Gas and hotel costs add up; here, too, it can help to find digital solutions! For example, use telemarketing to generate leads, according to Techpally.
Conclusion: Increasing sales is worth it!
Whether retail, gastronomy or trade, there are always opportunities to increase sales.
Price adjustments, additional services, new customer acquisition – if you know your market and your customers, you can skilfully maximize your income with a little effort.
Reply on growth and use the hidden potential in your company