Regardless of whether you are a startup, a small business or a relatively large company, there is never a bad time to increase your sales and overall profits. When your company makes more money, there is more to give to yourself, your employees and to other growth efforts. What are a few ways to market better and make more money?
Create a Loss Leader
A loss leader is a product that you may lose a little money on or break even each time you sell it. However, it is a product that increases volume in your store or online store, which means that there are more people to sell to. The goal is to use the loss leader to lure customers in and then sell them other items that have higher margins.
Always Be on the Lookout for the Upsell
Upselling is when you convince someone to buy the larger size drink, add a side to their meal or buy an extra feature for their car. Ideally, the additional product is related to the core purchase. This makes it easier to convince the customer that he or she is getting real value even when spending more money. Another good way to upsell is to offer free shipping on more expensive orders. Even startups may be able to find freight companies willing to partner with them to deliver orders. Some companies, like Factor Loads, know how important it is to receive discounts on bigger orders. Finding a freight company that works for your business is worth investigating.
Where Should You Set Your Anchor?
The anchor price is the first price mentioned in any sales negotiation. It provides a frame of reference that the salesperson and customer will dicker around. For instance, if you set the price of a car to $10,000, the customer will assume that’s how much the car is worth. However, if you set the price of the car to $15,000, the customer may assume that this is the best price and spend accordingly.
Convince the Customer That a Product Is Trendy
Whether you are selling hot dogs with extra relish or selling a certain type of computer, consumers want to buy what’s hot and trendy. By simply telling a customer what is most popular in your store or on your website, the consumer may be tempted to buy it no matter how much it costs.
Proper marketing can sway consumer opinion and get them to open their wallets and spend more per purchase. As long as you offer a good product or service at prices consumers can afford, there is no limit as to how much your business can make.