Episode 21 – 25 Reasons Local Small Businesses Fail
Episode 19 - Dealing with Problem Employees in Your Local Small Business

The 3 Ways to Increase Your Local Small Business's SalesDid you know that there are 3 key ways to increase your local small businesses sales?

In today’s episode: We discuss the 3 core ways that you can increase your small businesses sales. While there are a lot of action items, they all focus on one of these core areas. We will dive into what might be the best one for you and your business.


Here are the Show Notes from the Episode: 

**keep in mind that show notes are raw and only highlight what is in the episode. Listen to the show for the full content**


Episode 20 – The 3 Ways to Increase Your Local Small Business's Sales

Welcome back to the Local Small Business Coach Podcast, I am your coach Tammy Adams.

I hope everyone had a fantastic weekend of sales!  Speaking of sales, today we are going to discuss…..The 3 Ways to Increase Your Local Small Business's Sales


There is a saying that Sales cures all. Basically it means that the more you do in sales, the more it hides the weaknesses in your business.  I would agree that additional sales help to cover your weaknesses, but I would disagree that it “cures all”.  I'd argue that it actually makes your situation even worse.

When you are swimming in sales, it gives you a false sense of security, that you will have enough sales to cover your costs and expenses. However, the wrong types of sales can actually have the reverse effect.

There are plenty of businesses that did millions in sales and still ended up closing their doors due to bleeding losses. Remember, it isn’t just about the money coming in the door, but more about the money staying in the business after everything is paid.

You want sales that come with profits!


So why am I starting with this sales disclaimer? I want you to be methodical about what types of sales you go after. Selling $10,000 of goods or services that have no profit to them, will do you no good. You want a good mix of sales. You want to get customers through the door that will also provide both sales and profits.


So with that, let’s jump into the 3 ways to increase your sales.

I know your first thought is that there are more than 3 ways to drive more sales. You would be correct. However, if you were to look at all the various sales generating ideas, they typically fall into one of three buckets.


The reality is, there are only 3 ways to increase your sales.

local small business ownersYou can..

A) Increase your customer count

B) Increase your average ticket

C) Increase your customer frequency

Let's take a closure look at all three.


First Up:  Increasing Your Customer Count

It is important to refresh our memories on what sales consists of.  Our sales are a combination of a customer and what they purchase. So you could say your sales are made up of the number of customers’ times their average ticket. Let's pretend you get 100 customers a day and each ones spends on average of $8. This means your sales are 100 x $8 resulting in $800 in sales.

So if you happen to increase to 110 customers at that same $8 you get an additional 10 customers times $8 or $80. So you can see that by increasing your customer count, you were able to increase your sales.  In this example, you increased your sales by 10%. Not bad.

Let's try it again using different numbers. This time you get 7000 customers a week at say $12.  You work on getting more customers and now you are getting about 7500 a week. So an increase of 500 customers at $12 so you increased your sales from the original $84,000 to now $90,000 or a $6,000 jump or a 7% increase.

Now, If you are a service based business, this works for you as well. Maybe you do 25 jobs a week at a $40 average. That is $1,000 a week. If you got just one more customer a day you would jump 5 times $40 or $200 or a 20% increase in sales.

As you can see from these examples, by finding additional customers, and doing nothing different, you can increase your sales at a pretty decent amount. This is probably why the number one tactic business owners use is to try and find more customers through traditional methods like advertising, word of mouth, etc. Basically, the same things we have been talking about to drive business.

But what if there were other things you could do to increase your sales without constantly having to fight to gain new customers?

Well there is! Let's take a look at our next two ways to increase your sales.


Second Method is to Increase Your Average Ticket

What if instead of spending all your energy on drumming up new customers, you spent your energy on increasing your dollar average? For example, if you had those same hundred customers earlier who were spending $8, what if you could get them to spend $9 instead?

Let’s see what that impact would be.

So now you would basically have 100 customers spending $9 creating $900 in sales. So you would go from $800 to $900 which is a $100 increase or 12.5%.

Earlier we tried to get 10 more customers and that got us $80, now by just getting our average ticket up $1, we actually took the same number of customers and added a $100 which was more than what we did by adding more customers.

Now in our second example, we had 7000 customers spending $12. Let’s say this time we only squeezed out and extra .50 cents more. We would take our 7000 customers and multiple by the 50 cents and we would get an additional $3,500 a week.

So now that we know that raising your average ticket is a great way to increase your sales, the question becomes, how do you raise your average ticket? You actually can do this several ways.

Probably the most obvious way is to raise your prices. Now this may or may not be a good thing for your particular business. For example, if you are known as the home of the $49 tune up, it's going to be difficult to all of a sudden start charging $55 without having to reestablish a whole new brand.

However, if you normally sell something $75 there's no reason you can't bump that to $79 as long as it isn’t a heavily marketed item.  You could also take a product that you sell for say $3.99 to maybe $4,25.

If you are a fast food joint or a restaurant and your normal average ticket is say $7 you could raise yours by looking at each item and doing your products 5c here and 10c there. Word of caution on this one, always keep in mind what the market will bear. Do not raise prices just because you want to.

Remember raising your prices can also hurt your sales not just help your sales. I remember when I had my ice cream store the answer for many franchisees was to constantly raise their prices however they never took into consideration that this wasn't a smart idea in all markets.  Just because parts of California can charge $5 for a scoop there are plenty of other cities this just will not fly. The key is to know your market and know your customer. There is a sweet spot for everyone. Your goal is to find it.


Another way to raise your average ticket is through the power of add-on products.

This can actually add thousands of dollars to your sales and even your bottom line.

If you have watched the 8 steps to 100k video , then you have seen the example I shared of one simple no brainer add on that our local septic tank company does.

For those of you that haven’t seen it, let me share the example.

This company offers as an add on after they pump your septic tank, a box of monthly packets of septic tank bacteria that sells for $35. Let's assume they could sell 1 out of every 4 septic pumps.  Assuming a 5-day business, that would be $175 a week in additional sales.  Not too bad in a business that only a select few will ever use and even then, something they don’t use monthly or even yearly.

That $175 over the course of the year would be an additional $9,100 in sales.  If they grew this business even to just 2 more sales a week that jumps to $12,700 a year!  What a great way for them to increase their average ticket.  What types of add on items could you use to drive up your average ticket?

You could also add a warranty or service plan.  Be creative.

Increasing your average ticket is a great way to increase sales without increasing your advertising costs.  Plus, for businesses like that septic company that has a limited number of customers, this is a great option to increase sales when increasing customer count is much more difficult.


Now our 3rd way to increase sales has to do with customer frequency. 

This is actually a great tactic for those that have repeatable businesses.

For example, fast food places live and die off this one.  If you don't think that McDonald's doesn't count on you visiting their place multiple times a week then you don’t understand the model.

Not only is this critical to fast food places but grocery stores plan on you stopping by multiple times a month, as did Home Depot and any big box retailer. Think about it, gas stations with convenience stores count on your coming in 5 times a week. They all have a magic number that they use to calculate their annual sales off of. They try and find new ways to get you to come in that 1, 2, or 3 times extra a week.

A great example they use are those punch cards. They know that when they give you that buy 9 get the 10th free card, you will be tempted to come in more often for the “free” item. Now with these cards moving to our smart phones, they know that you can’t say you lost it anymore.

So, why is this option a great tool in your tool belt? Let’s use our 7,000 customers a week example. What if of those 7,000, the reality is, there might only be 5,000 unique customers. 2,000 of them might be repeat folks. What if they could get just 10% more to repeat? So of those 5,000 unique visitors, they just need 50. more to come back a second time. And 500 more visits at the $12 adds $6,000 more a week to their sales.


Starbucks is a great example of this. They want you to come back 2-3 times a week if not more. They know that those $5 add up.

This actually reminds me of a customer I had at my Baskin. He and his wife would come in 4-5 times a week for a drink they would share. He did this for years. Then one day, they discovered another drink at a competitor that became their new favorite. I did the math when I discovered that he had moved on to a new addiction.  On the surface, his $6 charge doesn’t sound like much. At least not until you looked at his frequency. I didn’t just lose $6 a day, I lost $2,000 a year!

In a business where every dollar meant to so much, you can imagine at how devastating this one loss of a customer was.


So my challenge to you is, how can you get your current customers to come back more often? How do you get them loving your product and your service so much that they can’t help but come back more often?


So which is the best option for you and your local small business?

Well, the best option which is… a Combination of 1,2 or 3 of them. You want to have a plan to tackle all three avenues.

Your sales gameplan that you create and work on weekly, should have a plan of attack that includes items in each of the three categories.


  • How will you get more customers through your doors or to call you up?
  • How will you get them to spend more money?
  • And how will you get them to come back more often?


Hopefully as we went through each of the 3 areas, you had ideas popping in your head. Take a few minutes to capture those ideas on paper or in your phone. Then pull them out when you sit down this week and see if you can put a plan in place to execute them.


Remember as you go through this exercise, don’t just drive sales for the sake of driving sales. Pick the right sales to drive that will lead to increasing your profits as well. Don’t just use coupons for example. These typically come at a reduced profit. They are good to have in the mix but don’t count on them for 100% of your plan.

Just like you wouldn’t want to run an item on special every month. You just train your customers to only shop when it is on sale.


Ok, this has been a fun one. Focus once again on driving more sales. Think about each area we discussed and how you will leverage each of them.

  • How will you get more customers through your doors or to call you up?
  • How will you get them to spend more money?
  • And how will you get them to come back more often?


Oh, and as I mentioned in our last episode,

Some exciting news. Soon I will be starting up some one on one coaching calls. Plus I want to have some fun with folks on the podcast, I’m going to give away a free coaching call each week. What I’m going to do is, for all of the folks that leave either a review for the show or leave a question for the show, I’ll toss them into a hat and pick a random person to get the free coaching call. So once you leave either a call or rating, shoot me an email at tammy@localsmallbusinesscoach.com to let me know and I’ll make sure you are included in the drawing.


So until next time, remember, if you like what we are taking about, then make sure to subscribe to the podcast so you don’t miss an episode, if you love the podcast and what we are talking about, then please leave a 5-star review so other local small business owners know this is a podcast that they can’t miss.


Meanwhile, I wish you the best in your business and remember: Great Customer Service, coupled with Great business practices will set you on the path to Great Profits!

Bye for now…..



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Episode Show Notes: Episode 0 – Local Small Business Coach Podcast

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My Recommended Bookkeeping Program for Local Small Business Owners: Freshbooks Link

Why? Helps you invoice quicker and more importantly, get paid quicker. Let’s you know when your clients have opened the email and they even help send reminders. Clients / customers can pay right from their phone or computer. Give it a Try: Freshbooks


**Freshbooks is an affiliate link. This costs you nothing. I only recommend due to how much folks have loved it. I am paid a small commission but trust me. Even I use it. Try it for free for 30 days and see if you don’t love it too!


Today's episode, as well as all of our episodes, is brought to you by trainingforlocalsmallbusinessowners.com. Where we provide free tips, tools and resources for your local small business. So whether you are just starting out or you've been in business for a while and want to learn more ways to increase your profit, boost your sales, improve your processes and develop stronger teams then head on over once again to trainingforlocalsmallbusinessowners.com..


And if you are Thinking of Starting a Local Small business, over at StartALocalSmallBusiness.com we have lots of free tools and resources to help you get your local small business started. Plus, we now have a more in-depth course to Help Get you going.  It has 12 modules, 50 mini videos and 13 downloadable tools a person can use to start their local small business. You can find the link once again at StartALocalSmallBusiness.com. I also have set up a special discount code for listeners of the podcast.  At checkout, just add the code PODCAST to save 25%.

See you on the next episode!