How to increase sales or the locomotive of your business

Saturated market, competition

These words are ephemeral and do not give a complete picture to novice entrepreneurs until they "start" in their business. And now, an office or a store has been opened, goods and services are presented, advertising is running. AND

silence. What has been done "wrong" and where to get buyers ???

Professionals say: "If you advertise the product you are selling, you are a poor seller!" For example, it can be mistakenly assumed that the famous McDonald's chain of fast food restaurants sells hamburgers and cheeseburgers.

In fact, selling hamburgers is not profitable. The well-known "sandwiches with a patty" go almost at cost, without bringing a penny (a cent or a penny) to the owners of the franchise)). The main part of the profit is the margin for Coca-Cola, french fries, sauces and other products with a sometimes terrifying:) extra charge.

Gillette reusable razors, known to every man (and not only), are essentially free - the buyer gives his hard-earned money for the cassettes (blades) included in the kit. And, when it comes time to change these blades, we are unpleasantly surprised - the price for razor cartridges for the machine is the same (if not higher) than for the machine originally purchased.

This is called a two-step sales model in which the so-called “front-end” product is the “locomotive” that “drags” the entire business. The main one (main ones), which bring direct profit, are called back-end products. As a rule, these are high-margin goods or services, which are simply “pointless” to advertise — most likely, the number of purchases (transactions) will be small or not at all.

Thus, the seller of a product / service must first of all "promote" the most "popular" product that a client needs with a high conversion rate. To put it more simply, then the maximum number of those who paid for the purchase should come out of the total number of potential customers (leads) who just visited your store or salon.

One of my clients, the owner of a street cafe in St. Petersburg, was worried about competition. Despite the rather tough approach of local authorities to organize such a business (especially if cafes are located in the center, on the banks of the Neva), the number of places for cultural and beer recreation is steadily growing. Someone is trying to give their cafe a “specific” style in order to be different from others, someone is expanding the assortment, someone is simply lowering prices.

Based on the specifics of the institution, all three of these techniques were offered to the owner at once. The cafe was decorated in the style of medieval England, the range was expanded by many snack sets for beer, and the price of beer itself was reduced to

.

purchasing!

When Mikhail (that’s the name of the client) got acquainted with the consulting plan, he fell into, to say the least, bewilderment - in fact, all income was built on beer. But chips, nuts and other small fish, although they gave an income (by the way, very substantial), while remaining products of the "second plan". Nevertheless, I managed to convince a Petersburger to test the proposed plan and

and the phrase “oh miracle!” begs it, but no.

An almost four-fold increase in sales, resulting in sharply increased profits, is no miracle. In this case, Mikhail offered clients (visitors to the cafe) a front-end product - high-quality beer at a price significantly lower than that of its competitors. The main source of the income stream was the very beer kits with, I’m not afraid of the word, space margin that visitors to the "medieval English pub" bought very well. Sometimes without beer!

If you are a supporter of a healthy lifestyle, but at the same time own a cafe or restaurant, you can offer your customers business lunches at a unique price. Car shop owners offer a free oil change, winning the sale of machine oil itself.

For the IT sector, the front-end product may be a test period for software or a free audit of a corporate computer network for the presence of any type of threat and / or increase in productivity, etc. Many training companies have a “trick” - “ first lesson” for free."

To summarize, I will say the following. Select among your products (goods and / or services) the most popular and interesting for your target client. Feel free to increase margins on back-end products. Use the existing advertising budget and other sources of lead generation to actively promote your fron-end and

.

count the profit, which will now increase significantly !!!

Good luck in business and increase sales!

Roman Myznikov, business consultant.