Q is for QuantityThe A to Z of Profit Growth – Q is for Quantity!

 

It’s time for the next A to Z of Profit Growth… This week Q is for Quantity!

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KMA The A to Z of Profit Growth – Q is for Quantity

That’s it for this week’s edition. Watch out for next weeks episode.

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Hi! It’s Kim here with your next profit growth advice. Q is for quantity and how to increase your average order value. This is a fairly obvious bit of advice, but it’s one of the most effective ways of maximizing profit. Your business will have an average order value. Every business will have it. You can calculate yours by simply divided your total revenue by your number of orders.

Now, if you can increase that average spend by just 10%, the results for your profit will be phenomenal, and there are so many ways to do this. A couple I’m fond of are offering free shipping with a minimum order value. This will encourage customers to spend that little bit more. Another is bundling products. Amazon do this brilliantly, your customers get discounted products while at the same time, you sell more. Win-win.

If you’re a service provider, you may get people to buy complimentary services or reduce the time between service. For example, a beauty salon may get you to come back every two weeks to have your nails done by booking the appointment before you leave, rather than leaving it three weeks. So increasing the quantity from 17 times a year to 26 and the extra sales and profits that that produces.

 

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