How to increase sales. Sales figures

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Retail sales are the most common type of business. So, direct contact with the buyer makes it possible to give the retail outlet an attractive look. However, practice shows that some business entities are completely focused on the wrong areas of activity that can bring the greatest profit.

Modern retail outlet owners often don't think about what methods or tools to use to increase sales. However, even wholesalers sometimes have to think about retail as well.

Communication between wholesalers and retailers

There is a relationship between these two categories, namely:

- with an increase in retail sales, there is an increase in the corresponding indicators of wholesalers;

- with the activation of sales volumes on the recommendations of the wholesaler, the level of loy alty at the retail outlet increases;

- Taking into account the characteristics of the retail business, sales from the wholesaler increase due to better satisfaction of demand.

Sales monitoring

Demand both in general and for a particular product in the conditions of modernmanagement is of particular relevance, and therefore requires constant monitoring. To create all the conditions under which sales will be successful, you need to properly organize the sales process itself, taking into account certain factors, starting with the appearance and packaging of the goods, ending with prices (wholesale and retail), as well as points of sale.

What needs to be taken into account and controlled by a trade business entity? Experience shows that in order to make a correct and effective decision, it is necessary to clearly systematize information that is relevant to the activity. The first stage of monitoring is the collection and analysis of data. The next one is direct decision making.

Key retail performance indicators

In order to maintain sales volumes, you need to monitor two indicators of retail efficiency:

- the number of customers who visited the store;

- the number of customers who bought something at the outlet.

The first indicator is calculated quite simply. It is possible to install an appropriate sensor at the entrance to the store, which counts both incoming and outgoing customers. Errors in this case can only occur if the same buyer enters and exits several times. But they will be insignificant.

Indicators that determine the number of customers in the store

Among those, we highlight the main ones:

- retail outlet location;

- availability of signs;

- uniqueness of the trade offer;

- organization of advertising;

- other services.

Often, retail stores with the opening of their outlets focus on only one of the above factors. And experts have proven that only with the consideration of these indicators in the complex will it be possible to maintain a stable level of sales.

And yet the most important indicator is the location of the outlet. In second place is the choice of product specifics. The first indicator also depends on this factor. So, if we are talking about consumer goods, then the location of the store matters. If the business entity is supposed to sell goods with a certain uniqueness, then in this case the location of the outlet is not so important. It is advisable to consider sales indicators to increase store attendance in more detail.

Permeability

The location of the outlet affects such a factor as traffic. The latter is determined by the total number of potential visitors. To do this, a representative of a business entity can stand at the door of the store and count the people who passed by this outlet and looked in her direction with interest. To obtain more complete data, all potential buyers can be divided into men and women, and also distributed by age.

Signs

After establishing the patency of the store, it is necessary to attract the eyes of potential visitors. As an effectivetool, a sign is used, which should:

- be noticeable and conspicuous;

- clearly define the specifics of the goods that a person can buy in this store;

- announce the benefits of certain purchases (low prices, variety and high quality).

Determine the effectiveness of a sign, unfortunately, is difficult. This can only be done empirically.

Unique selling proposition

If it is not possible to organize an outlet with high traffic, but there is a desire to open your own business, this factor will help. The uniqueness of the trading position is something for which any buyer wants to go to the store, which is located even in the gateway. Thus, the first thing that is simply necessary for sales volumes to always be stable is to provide a product or service that is unique in its definition.

Some examples are as follows:

- direct supply of Chinese tea (over 1000 varieties);

- European dry cleaning (only 5 hours);

- over 100 models of boilers with free installation;

- delicious high quality whites at the lowest prices, etc.

Promotion organization

Not all business entities can afford to shoot commercials for their subsequent broadcast on television. Also, billboards on the central streets are quite expensive. Therefore, in this article attention will be paid to other, no less effective methods of advertising.product promotion.

An effective method is to place relevant advertisements on the Internet and in local newspapers. Also, positive feedback from customers who are satisfied with the purchase and service, who are satisfied with the price, can also be of good help. Sales volume can be significantly increased by ordering appropriate flyers and booklets from the printing house. An ideal advertisement is information about a product or service, located along with other data that a potential buyer may need. For example, on the reverse side of the flyer, you can print the addresses of the best catering points or train schedules. In this case, the information content of such a booklet increases significantly, respectively, and the probability of its preservation too.

As for the Internet, advertising on the World Wide Web has one indisputable advantage. This is an affordable price. Sales volume can be significantly increased if you create an appropriate store website that is regularly updated.

Other Services

For example, an entrepreneur decides to open a cosmetics store in a small town. How can I notify the entire community about this? It is very simple - to invite a stylist who will be able to select and adjust the image of customers for free, for example, within a month, and notify as many people as possible with flyers. It really should work, and in a month, many women will know about this store.

Another good example is the sale of ordinaryplastic windows. Retail sales will increase significantly in the future if you offer to rent a special device that measures the thermal conductivity of windows and calculates heat loss. With the offer of this device, the rating of a business entity will increase significantly.

Thus, sales growth can be achieved using the above recommendations.

The reasons for the ruin of some stores

Studies in the retail business have shown that up to 80% of small businesses go bankrupt in the first five years of their work. This is often associated with significant costs associated in turn, for example, with the rental of premises for a store. The volume of retail sales is closely dependent on the range of goods. Also, there is often a lack of good specialists who can work effectively with customers.

For the successful development of your own business, you cannot ignore competitors, but it is not recommended to constantly look back at them. What is meant in this case:

- rely only on yourself;

- engage in increasing the number of buyers (attract exactly buyers, not just passers-by; increase traffic and try to create a queue of buyers);

- increase turnover by persuading each visitor to make some kind of purchase, increasing the size of the average check and the number of goods in it, ensuring maximum repeat purchases;

- fix any problems with frames:find highly qualified personnel, prevent any theft among employees, educate professionals, form an effective system for exercising control over both sellers and administrators;

- build effective marketing (reject low-performing advertising, balance sales, develop profitable pricing).

How to get a stable planned sales volume, and the conversation will go on.

Sales formula

Sales volume should be calculated in order to analyze the growth or reduction of this indicator. This will allow any business entity to control its success and make timely decisions with a rapid decline in the relevant coefficients.

There is a well-known sales formula:

OP=(UPR + Pr) / (C - R), where

RC - semi-fixed production costs;

Pr - profit without deducting interest;

P – unit price;

P - variable costs per unit of goods.

An important indicator in the analysis of sales is its gross volume. At the same time, the calculation of gross income is carried out, but for some time it is based on the turnover, acting in the form of a trade mark-up rate. Gross income for the planning period is based on the projected turnover.

Conclusion

Summing up the above material, it should be noted that sales volume is a rather important indicatorperformance of a trading enterprise, its value largely depends on both internal and external factors. Only if a business entity tries to take them into account when planning its own activities, it will be able to achieve good results.