Who gets paid more sales or marketing
Increase Sales - The Pros and Cons 6 Well-Tried Strategies
Do you want to increase your sales? Getting more money into the till is a tricky business. You need a well thought out strategy. That's why we've scrutinized six tried and true practices. What are their advantages and disadvantages? Which strategies are really suitable for whom? What do you have to pay attention to? We have put together the most important points for you.
1. Increase sales through more customers
More customers usually mean more sales. That makes sense. If you don't have any customers, you don't make any money. The strategy of gaining more customers is therefore particularly interesting for service providers who lack customers. That’s out of the question.
However, caution is advised if you are already quite busy. You shouldn't overdo it. If you clutter your schedule too much, you run the risk of losing focus. If the individual customers have the feeling that you are no longer fully focused on them because you are stressed or your head is already with the next customer, they will not come back. In the worst case, word of bad service gets around quickly and your customers stay away. So be careful: More customers are only a good idea to increase your sales if you can manage them!
If you obviously have too few customers, the first thing you should focus on is customer acquisition. This not only has something to do with increasing sales, but fundamentally with the survival of your company. No customers, no money.
If you are already busy, don't be too greedy at this point. If you overwork yourself, you will achieve exactly the opposite of your actual goal. Customers get angry and go to the competition.
2. More sales through higher prices
The idea is this: You can increase your sales if your customer pays 50 euros instead of 20. There are different approaches to achieve this: The first is to increase your prices.
The advantage of increasing your prices is that you no longer have to work. You simply get more money for the same service. That sounds tempting. In some cases, a price increase is perfectly legitimate. Newcomers in particular often don't ask for what their performance is actually worth.
High prices are a deterrent, at least initially. If you are not able to justify a higher price with a corresponding service, a price increase can backfire. But you also have to differentiate between your existing and new customers.
1. If Ms. Maier has been paying 15 euros for two years, why should she now pay 17? At least Ms. Maier asks herself this question and you need an answer to it. If you cannot justify your price increase well, you will possibly lose Ms. Maier to the competition.
2. In the store down the street, service X costs 15 euros, but for you it costs 17. Why should the customer go to you anyway? There is only one answer to that: you are better. The same applies here: Higher prices are OK if the performance is also better. But you have to prove that. Otherwise, the customer will not go to you, but to the competitor one street further.
Increase prices? Yes, you can do it. Sometimes it takes a little courage here. 1. Find out what the competition is asking for. If you see that you are well below that, you can go ahead and take it a step further. 2. Have confidence in your ability. Be true to yourself. If you are convinced that you are really good and that you stand out from the competition, then dare to ask a corresponding price for your performance.
However, price increases should always be treated with caution. This is due to the customer's mentality alone. “Why should I suddenly pay more now?” High prices always need good arguments. If you don't have these, your price hike will turn your existing customers off and scare off new customers.
Absolute no-go: Just screw up the prices and see what happens. This idea has already ruined a number of service providers, shops and restaurateurs. The customers you lose because of this will likely never come back. Recovering customers is a difficult and time-consuming undertaking. The damage to reputation that can result from an unjustified price increase is possibly so fatal that the little bell on the shop door will remain silent for a long time.
Be sure to check out our article on price increases on the subject.
3. Expand the offer
Pharmacies sell cosmetics. You can get a head massage at the hairdresser's. Many service providers try to increase their sales by expanding their offerings. This is especially a good idea if the additional service fits well with your core offering. 10 euros for a 15-minute head massage for the customer, who is already there anyway, is easy money. For you it is not a lot of additional effort and for the customer it is not a big additional cost. More elaborate things such as make-up are also suitable for hairdressers - especially for proms, weddings, etc.
Such profitable additional services can be found in all areas. The floor layer can sell the care product directly. The physiotherapist offers yoga classes. The dog trainer has collars.
Be creative! Find something that does little extra work for you and generates good sales. Always make sure that it's worth it. One advantage of this strategy is that you can experiment here too. Just try out whether a certain offer attracts your customers or not. If it flops, you can just let it stay.
There's not much to say here, except: Don't offer anything that you can't. But that should go without saying. Also make sure that the additional offer is also worthwhile in terms of price management. It does not bring you an increase in sales if certain services rob you of a lot of time but bring little sales. In the worst case, this means that your sales are not more but less.
A good idea can make you rich. That may sound like an exaggeration, but it's true.
4. Make processes more efficient
Let yourself be assured: It is worthwhile to question all processes in your business to see where there is still untapped potential. And how. Take a close look at everything! Sometimes you've gotten so used to processes that you can't even see how cumbersome they actually are. Or how much time they eat up, although there would also be faster solutions. The magic word here is: digitization! Because a lot of things are easier, faster, in short: more efficient when digitized. For example, there is now software for service providers that makes appointments, customer management and marketing much easier for them. As a hairdresser, for example, you can use software to increase your sales by a full 16%! Pssst ... the Shore software is just such a miracle tool. Have a look:
The whole thing is of course associated with a not inconsiderable amount of effort. Because unraveling all of your work steps and considering what could be improved is only the first step. Next you have to come up with a solution, try out alternatives, train your employees again, etc. And if you buy appointment and customer management software, this is of course initially associated with costs. You can easily bring it back in later, but at the beginning you just have to invest a little something.
Making your processes more efficient means an investment first: you have to sacrifice time and money for it. But it's worth it! Because in the long term you will save a lot of other costs, work more efficiently and ultimately increase your sales.
5. Calculate better
No matter how well you can do your work - if you calculate incorrectly, you will leave a lot of sales by the wayside! Therefore, you should be 100% familiar with your finances, purchases and sales and the wages of your employees. How is that supposed to work? On our blog you will find many useful articles about calculating:
Let's be honest: You can go a long way with Googling and common sense - but of course you should know your way around a bit. So if you have absolutely no idea about business administration and Excel is a foreign word to you, a little help certainly couldn't hurt. It often makes sense to invest in professional advice once in order to be able to keep the business running properly.
A good calculation is worth its weight in gold - almost in the truest sense of the word! Don't be afraid to spend money on professional advice so that you can get an accurate overview of your business!
6. Boost Marketing
Good marketing can really move you forward and really boost your sales. A cool social media campaign in which your followers will finally notice you again, an interesting newsletter with reference to your new offers or a few nice customer gifts for your regular customers - marketing brings you attention, customers and, as a result, more sales. Get our free e-book “Marketing for Service Providers” and get your marketing going!
You have to do it right. Half-heartedly every two weeks an Instagram story here or a Pinterest post there won't get you any further. Just sit down and think of a good concept that also suits you and shows what you stand for. Your marketing needs to be carefully planned, both your online marketing and your offline promotions.
Marketing brings more than you might think at first and can really boost your sales. But: good marketing is like running a long distance - you need a lot of perseverance. In addition, your marketing should be well planned and perfectly tailored to your company and your concept.
So: analyze and do the right thing
If your schedule isn't busy, customer acquisition is sure to be a successful strategy for increasing your sales. But if you are already at your limit, you should focus on other options.
A price increase should always be treated with caution. You should only consider this if you either notice that you are asking significantly less than the competition or if you are convinced that your performance is worth more than you are currently getting for it. If both points apply, you can raise the prices a bit. If neither applies, then you should stay away from it.
No matter how big your company is and what industry you are in: Additional services can increase your sales immensely! Ideally, you will find something with minimal effort and maximum return. Regardless of whether you are a tailor, hairdresser, alternative practitioner or personal trainer: Great potential lies dormant here for all industries and company sizes!
Questioning and improving your daily work steps and your marketing concept costs a lot of time and money at first. But this investment will more than pay off in the long term and increase your sales!
In addition, you should always focus on your calculation and see where you can get even more out of your business. Well calculated is half the battle!
Need some support?
Are you now really excited to finally increase your sales? To plunge into the acquisition of new customers, the calculation or your marketing? We don't want to hold you back any longer. If you could use a little more support, take a look at our free downloads! Interesting e-books, practical white papers, nice marketing materials and much more are waiting for you here! I wish you success!
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