Achieving a high turnover at the end of the month and so having enough money in the till is the goal of every retailer. But boosting sales is harder than ever these days. Lockdowns in the wake of the Corona crisis, the growing online trade as well as greater competition and last but not least critical as well as extremely price-conscious customers make it difficult to achieve any increase in turnover. We provide tips on how to take advantage of all the available opportunities and achieve higher profit margins.
1. Adapting the product range/ product range design
Designing the product range is an important aspect when it comes to achieving greater profits and higher margins. You should make sure that the products generate a sufficient return. For this purpose it is important to have an overview of individual costs and overheads in order to calculate prices in the most effective way. This is because in the selection of products, how fast they will sell as well as the level of the individual return is decisive for any increase in turnover. The broader the product range, the more likely it is that customers will make purchases from you. Complementary articles that supplement other products in the range can also ensure this, for example. In addition, keep an eye on current trends and the products of your competitors.
If you would like to learn more about product range design, our article “Product range design in retailing” can help you.
2. Additional sales through cross-selling
Increasing per capita turnover per customer is another way to boost retail sales. This can be achieved, among other things, by selling additional products. These include, for example, complementary products as already mentioned in the product range design. To generate additional sales you can train your staff to make sure that your customers are made aware of suitable products. It is also a good idea to place products in groups and to put together product packages for suitable occasions. Attractive offers can also increase sales. For example, “Products of the day/ Products of the week/ Products of the month” can be used to draw the customer’s attention to such offers.
You can also find more information on cross-selling in our article: “E-Commerce Marketing: 9 useful strategies”
3. Placing advertisements
With attractive window displays, advertising stands, flyers or posters you can awaken the curiosity of potential customers about your product range. In addition to local advertising placed offline, social media offer a wide reach for attracting potential customers. Depending on the target group and advertising strategy, various platforms such as Facebook, TikTok, Instagram or LinkedIn are suitable for this purpose. Thus you can achieve a great effect at low cost, increase your visibility and inform your community about new products and promotions. You can also create a Google Business profile or place paid advertisements on Google or social media.
4. Sales promotions
Discounts attract most customers. You can boost your turnover with discounts and special offers. However, it is important to calculate such promotions in advance so that not only the turnover but also the profits increase. You should ask yourself questions like:
- How many more products do we have to sell to compensate for a smaller margin?
- What do I want to achieve with the sales promotion? Is it to sell old goods, increase customer loyalty or raise awareness?
For sales promotions, you can use specific anniversaries to launch creative and profitable campaigns to increase sales.
5. Training staff
Persuading customers to make a purchase, steering them in the direction of a sale and marketing additional products are the skills required of a good salesperson. Many salespeople are afraid to pressure customers into making a purchase. However, this often results in the customer leaving the shop without buying anything, possibly going to the competition or buying the product online and therefore the sale is lost. So you should train your staff in such a way that they are enthusiastic about your products and their sales talks are positive and authentic, but still without seeming too pushy. The selection of staff is crucial, because they are the ambassadors of your shop. You can also train your staff directly on the subject of cross-selling or upselling. Personal advice to customers in order to increase customer satisfaction and turnover can only be effectively and easily implemented in bricks-and-mortar retailing.
Measures to increase turnover in retailing
In addition to the tips mentioned so far, there are many other aspects you can take into account to increase sales and make more profit. Try to increase awareness of your brand and reach new customers who will be enthusiastic about your products.
Adjusting or increasing prices is also a way to achieve more turnover. It makes sense to check what your competitors are doing. Don’t assume that higher prices will result in fewer products being sold. Very low prices are often associated with lower quality. However, you should communicate and justify your price increase in the best possible way, for example by offering new services or improving your products.
In this way you can achieve a change through many small adjustments, and position yourself in the best possible way.