PRACTICAL STRATEGIES TO INCREASE SALES

Output is the total amount of goods/services produced.  And therefore available for sale over a period of time. While turnover is the cumulative sales made for the period in view. As such, turnover is seen as the value derived from the output. An increased turnover makes the firm liquidity position high, therefore able to meet up with their short-term obligations as they fall due. Therefore for a successful business to remain operational there is a need for them to consider practical strategies to increase sales.

In this work, we shall extensively discuss why there is a need to consistently increase the turnover of a business and modalities to boost sales.

Reasons for increased turnover in business?

Every profit-making company strives to make maximum revenue to remain in business. For this to become a reality, there is a need to consistently increase sales and customer base. There are several benefits of having large sales, these include:

• It makes the production process complete and enticing.
• Helps to build goodwill and customer loyalty.
• It may result in the firm monopolizing the industry. This is dominating the industry where the consumer has little or no options for substitute products.
• Helps to meet the organization’s set goals and objectives.

• PRACTICAL STRATEGIES TO INCREASE SALES

• It increases overall gross and net profit.
• Gives room for expansion and firm growth.
• Creates more employment opportunities as the firm grows.
• Attracts Investors who will be willing to invest in the organization

Below are some tips that will assure increased sales;

1. Ensure all products are of high quality.
2. Offer affordable rates for products and services.
3. Have a good marketing network.
4. Buy raw materials/products from suppliers with the best rates
5. Build and maintain good customer care relationships.
6. Credit sales
7. Discount sales

Ensure all products are of high quality

Consumers want to get great value for any product or service paid for as such, a business must ensure they deliver products that meet up their customers’ expectations. Quality products ensure customer satisfaction while the satisfied customer is most likely to return or refer a new client.

Offer affordable rates for products and services

Customers want to get these quality products at affordable prices. Overly hiking the price of a product to maximize profit will most likely result in only a few customers, this will great. It is possible to lower the cost of the product so that it is affordable to the large majority of consumers. This will guarantee a high rate of sales, which will ultimately bring in more profit.

Good marketing network

A good product without reaching the consumer is like a well without water. This implies that regardless of how affordably priced a great product is, if its target customers are unaware of it and unable to buy it, there may not be sales. Businesses are urged to spend money on marketing, distribution, and advertising to ensure that the product reaches the target market.

Some ways to ensure effective marketing are:

• Employ marketers; Marketers are skilled employees whose primary responsibilities are to advertise a company’s products by taking the products (if possible) to the target customers.
• Invest in media advertisements; Media is a magnificent channel company can advertise. These include radio, television, and social media ( examples are: Instagram, Facebook, TikTok, WhatsApp, LinkedIn, and some public websites). In recent times, social media has proven to be one of the best channels to reach out to people across nations and races within a short time. Small and medium-scale enterprises can easily access social media adverts by creating and building a business handle where they post their products, sponsoring posts, or contracting social media influencers.
  

  PRACTICAL MEASURES TO INCREASE SALES

Buy raw materials/products from suppliers with the best rates

Selling at an affordable rate all starts with the cost price. When you buy at a lower rate you also sell at a lower rate. To achieve this, the business has to pull the prices of a wide of suppliers within and outside their regions while considering the cost of final delivery to the business site. After this, then the supplier with the lowest rate shall be chosen as their basic supplier. There it’s a need to consistently pull prices in case there is a change in the general market. For example, a manufacturing firm that buys materials from a major distributor will most definitely buy them cheaper. Another way to buy at a lower rate is to buy your materials in bulk, bulk purchases make the total unit price lower than the regular

Build and maintain good customer care relationships

Customers prefer to go to establishments where they feel valued. These customers also want products that meet and exceed their expectations. Giving customers exceptional services is key to keeping old clients loyal and attracting new ones. Receiving feedback from customers in the form of comments, complaints, and recommendations can help businesses consistently improve their customer service and take the necessary action to prevent future problems.

Credit sales

Credit sales are when goods, products, or services are transferred from a seller to a buyer so that the buyer pays at a later time or day. Buyers tend to be motivated to either purchase a product or increase the numbers they had wanted to buy when it is sold on credit.

To increase overall revenue and sales in the business, credit purchases are definitely encouraged, despite the fact that there can be additional negative effects, especially if the buyer doesn’t make the payment.

Also read, https://fabjobsetters.com/losses-to-avoid-in-business/

Discount sales

This is when there is a reduction from the normal selling price of a product/service. Discounts in sales can come from the below:

• Percentage discount: Here, there is a price reduction.
• Pay early discount: Customers are urged to make payments for goods and services before the scheduled delivery date. Therefore be given an overall reduction on the selling price of the product. It is also known as pre-order sales.

• PRACTICAL WAYS TO INCREASE SALES             

• Bulk purchase discount: In bulk purchase discount the customers are told to buy a higher unit and will be given a reduction from the normal selling price of the products and services.
• Referral discount: This is when customers get a reduced value from the regular selling price of a product or service when they refer new clients to patronize the same product.
• Promotion sales: This is a campaign drive; it could be. For example, buy one and get one free, give away offers.
• Clearance sales:  Mostly done when there is a need to clear an old stock for one reason or the order. Products are discounted in order to sell off a specific batch and make space for a new batch.