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How would it feel to increase your sales by 150%? What would you do with all the extra income? How proud would it make you feel? I was fortunate enough to attend a Tony Robbins Business Mastery Conference over three years ago. I still use many of the strategies I learned there but this is my favorite and most effective strategy. It is simple to understand, should be implemented immediately, and it works.
3 ways to increase your business
This strategy was presented by Tony Robbin's guest and marketing consultant Jay Abraham.
- Increase the number of clients. This is the obvious way and I assume you are already focused on gaining more clients. What would happen if you only increased the number of your clients by 10%?
- Increase the average transaction value. Transactive value is the amount you are selling your product or service. This strategy requires you to focus on the average transaction value which you get by adding all your transaction values together and dividing them by the number of transactions. What if you also increased your A.T.V. by only 10%?
- Increase the frequency of repurchase. This simply means how often do your clients repurchase your product throughout the year (or time frame you are using). How much more in sales would you get by increasing the frequency of repurchase by only 10%?
Current # of Clients
1,000
10% Increase
1,100
20% Increase
1,200
33% Increase
1,330
Current A.T.V. Per Sale
$100
10% Increase
$110
20% Increase
$120
25% Increase
$125
Repurchase Frequency
2
10% Increase
2.2
20% Increase
2.4
50% Increase
3
Total
$200,000
33.1%
$266,200
72.8%
$345,600
150%
$498,750
With only a 10% increase in all three categories, you will see a 33.1% Increase in your sales or in this example an extra $66,200 a year. If you want to see bigger results aim for a 20% increase in all categories or 72.8% increase overall; In this example, you would have an extra $145,600 a year. For the last row, I would like you to do the math so you can better understand. Then apply this simple method to your business and get to work!
You need a compelling WHY
Once you get clear with your goals and before you move on to the how you need to find strong enough reasons to follow through in the rough times as well as the good times. This strategy is simple but requires focus. Why should your client pay more for your product/service? What should you say to the previous client who has already paid less? Why would your client make multiple purchases a year from you? If you don't have a good enough reason to give to your clients then they will only shop around for a cheaper price. Let them know that you are the best choice with a compelling WHY.
Conclusion
The 3 ways to increase your sales is by increasing the number of clients you have, raising the average transaction value per each client, and getting those clients to buy more often. If your math was correct on the last row of the example you will notice that if you increase the number of clients by 33% you would have 1,330 clients. Increasing the A.T.V. by 25% would mean you earn $125 on average per sale. Increasing the frequency of purchase by 50% would be the clients' repurchase from you 3 times within the year on average. Your business would see 150% increase or an extra $298,750 per year. Figure out your compelling reason why you will get these goals and get to work!
What do you think? Do you think this is a strategy you can use? If you have used this strategy before how did it work for you? Do you know of a better way to increase your business by 150%?
References:
- Abraham, Jay, and Tony Robbins. “Jay Abraham’s 3 Ways to Grow a Business.” Business Mastery Conference, Aug. 2016, Las Vegas.
- Abraham, Jay, and Lewis Howes. “Jay Abraham on How to 10X Your Business with Lewis Howes.” YouTube, YouTube, 29 Nov. 2016, www.youtube.com/watch?v=3Bi4X4KY1DQ.
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