There are only three ways to increase the sales of a product:
- Increase the number of customers; or
- Increase the volume of the sale per transaction (higher price per item / more items per sale); or
- 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.
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