It’s always easier to encourage existing customers to spend more, rather than finding new customers.
It also saves you time, you get more profit from the same amount of work. It’s called working smarter, not harder. There are two basic ways to increase basket spend. The first is selling more products to the same customer and the second is by selling more profitable items.
For example, if you are making a 10% profit margin on one brand of confectionery, but a 15% margin on another brand, it makes sense to make the higher margin brand as appealing as possible.
The first step to influencing customers is to place the products you would prefer to sell at eye level. Making them more obviously noticeable goes a long way as everyone is time poor nowadays. Conversation with consumers will always be the most effective method though. Your customers don’t have time to find out about every item that you sell. You really are the expert as you choose the items you sell. Explaining alternative choices gives your customers extra value that they will not get from Multiples Express stores.
Selling higher margin products
Other customers are buying this product instead
As humans we all have an instinct to follow the crowd. If other people are choosing something then a percentage will always follow.
We also stock this product, it’s better value than the one you asked for
Everyone likes a bargain. And recommendations from retailers go a long way in helping customers decide which product to choose.
I noticed you buy this quite often. Is it good?
Sometimes asking a question is a better way of initiating a conversation. It demands an answer and from there you can mention that another choice is available or popular.
Suggesting miniature cigars to cigarette smokers doubles your profit margin
59% of non cigar smoking men would buy cigars. 32% would buy them due to their taste and 27% would buy them as they are cheaper than cigarettes. For each regular smoker you switch from cigarettes to cigars you could earn an extra £250 per year.
Selling more items
The key to selling more is talking to customers.
By developing a relationship and putting them at ease they will be more inclined to visit your store more often and pick up more sundry items.
Your best customers for increasing sales are your tobacco customers.
They repeat visit already and it’s easy to get to know them as they always ask for the same product.
Get closer to them.
Customers who you talk to will be more likely to use your store for items that might otherwise be purchased from multiples: beers on a Friday, a paper on a Sunday, pints of milk, sundries and snacks. All customers would prefer a more personal service and that’s easy to accomplish just by smiling and talking to them.
Make sure baskets are available
Any customer can only carry about four items without a basket. By putting baskets in an easily spotted place at the front of the store customers are more likely to pick one up. Once they have a basket in their hands they are more likely to put more in it, as they no longer have to worry about carrying multiple items.
It doesn’t take much hard work to encourage either more spend or more profitable spend. And whilst the odd extra purchase here and there might not seem like a lot, at the end of the year it adds up to a lot. When you consider that, just by making sure you and your staff smile and talk to customers, could mean an extra holiday, a home upgrade or just some extra money as a safety net, it’s worth thinking about.
Using a planogram is essential to not only maximise your profit per shelf, but also to help your staff remember where products are to be found when dealing with customers. If you want further advice on how to maximise your sales please book a visit from one of our trade reps who will be happy to advise you.