Part 2 of a 5 part series

Warning Signs:

• Falling profits (before owner's compensation).
• Falling owner's compensation.
• Falling or stagnant sales with falling profits.
• Rising expenses.
• Cost of goods sold.
• Decreased gross margin.
• Significant adverse deviations from budget.

Steps to Improve: INCREASING AVERAGE SALE

• Increase the average sale size.
• Use tie-in sales and follow-up sales; the real profit is in repeat sales.
• Package deals increase sales: volume, companion products, larger size, service.
• Make one shot promotions pay off; bounce back sales promotion with order.
• Sell using piggy back promotions with bills promoting your own/others' products.
• Broaden your market by "bundling" products or services.
• Make the merchandise/services more attractive to the customer.
• Increase sales with loss leaders as bait to bring in customers.
• Print descending dollar balance reports by computer and use them.
• Identify and care for your top (15%) customers/clients with excellent service.
• Identify existing and future clients/customers you want in your top 15%; target them.