Have you ever wondered why Starbucks makes millions of dollars selling coffee while millions of coffee shops struggle to sell enough coffee to survive? Or what about the likes of Bunnings Warehouse and Mitre10 dominating the ‘DIY’ home improvement industry while other smaller retailers fall by the wayside?
Imagine your business not having to spend a cent on advertising to attract new customers, and every new customer that comes through your door comes from a referral from your existing customers – and that those referred customers arrive with a positive preconception and a willingness to spend their money with your business.
During tough economic times, it’s critical that businesses reduce expenses, especially their larger ones. However, staff cutting should be an absolute last resort regardless of how much of a quick fix it may appear on the surface.
So, if cutting staff is not the answer, what else can you do in a must-reduce expenses situation?
Packaging products together is a fantastic way to offer customers exceptional value and at the same time increase your average transaction value.
Packaging, cross-selling and up-selling all help you increase your average transaction value, however with cross-selling and up-selling you need to wait until the customer makes a purchase before you can recommend add-on products.