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Increasing Hot Sauce Sales

by Kurian M. Tharakan

There are only three ways to increase the sales of a product:

  1. Increase the number of customers; or
  2. Increase the volume of the sale per transaction (higher price per item / more items per sale); or
  3. Increase the frequency of the transactions.

I remember reading about one hot sauce company that increased sales dramatically by doing one simple thing.

  • They didn’t increase their advertising.
  • They didn’t get their product onto more store shelves.
  • They didn’t get the consumer to pay more money for the product.

How did they do it? Simple: They increased the size of the holes in the top of the bottle.

Practical Application

One of my non-profit clients was debating whether to sell 8 seat or 10 seat tables to their annual gala. This was their major fund raiser of the year, and many top tier corporate patrons would attend with their own clients in tow as guests. When asked the question whether to seat 8 or 10 at the table at $100 a ticket, my answer was quick: “go with the 10”.

My reasoning?  A top tier corporate client doesn’t care whether they spend $800 for a table or $1,000.  Their real question is whether they should attend at all. $200 one way or the other is not a big factor, but attending a boring night regardless of the worthiness of the cause is. Once they commit to purchasing the table, the extra $200 for 2 more seats is not even a consideration.  The event sold out, and the non-profit pocketed an additional $6,000.

photo credit: Flickr, Josh Koonce

 

About Kurian Tharakan

Kurian Mathew Tharakan is the founder of sales and marketing strategy firm StrategyPeak Sales & Marketing Advisors, a 27 year veteran of the sales and marketing industry, and the author of the Amazon bestseller, The Seven Essential Stories Charismatic Leaders Tell. He has consulted for companies in numerous sectors, including Retail, Professional Services, Manufacturing, Distribution, High Technology, Software, Non-Profit, and Life Sciences. In addition to his consulting practice, he has also been an Executive in Residence at the business accelerators TEC Edmonton and NABI where he has assisted clients with their go-to-market strategy. Prior to StrategyPeak, Mr. Tharakan was a vice president of sales & marketing for an Alberta-based software firm where his team achieved notable wins with several members of the US Fortune 500.

Entertaining, Motivational, Funny. Book Kurian to Speak.


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“When someone loses their way, it is almost always because they have lost their story. When they regain their story, they will regain their way.” – Kurian M. Tharakan

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KURIAN MATHEW THARAKAN
Managing Director
Strategic Marketing Services


StrategyPeak Sales & Marketing Advisors
204, 10108 - 125 Street
Edmonton, Alberta, T5N 4B6
Canada

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