Increasing Sales by focusing on some basic business fundamentals!

Let's agree that there are countless ways to increase sales; but in saying this sometimes the easiest way is to focus on the basic business fundamentals.

Sometime back I remember reading an article that touched on a similar topic. Over lunch today I discussed this very topic with a business partner. To paraphrase what we discussed I will highlight the following.

Typically there three ways to increase sales in a business.

1) Get more customers.

2) Increase the average sale/Invoice amount per customer.

3) Increase the frequency that your customers place sales orders upon you.

Let's do some basic maths and focus on aiming to increase each of the above three actions by, let's say 10%.

Customer count: 1,000

Average Invoice amount: $100

Average order frequency per year: 2

Based on the above your current yearly sales value is $200,000.

(1000 x $100 x 2 = $200,000)

Now lets look at the maths when you aim to deliver a 10% uplift on each of the three values in the equation.

Customer count: 1,100

Average Invoice amount: $110

Average order frequency per year: 2.2

Your new yearly sales value is $266,200.

(1,100 x $110 x 2.2 = $266,200)

Aiming for a 10% uplift in each of the three values delivers you a sales increase of just over 33%.

Now that's something to be happy about in any fiscal year!

Wayne~

#sales #salesmanagement