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How to increase sales revenue.

Increasing sales revenue is one obvious way to help grow your business. But how do you sell more?

Six ways to increase sales revenue.

Learn from your customers

Check in to see how your customers are getting on. Do they have new problems that you can solve? There may be fresh opportunities right in front of you.

Also ask what they like about your product or service, and what could be better. Do more of the good things and fix the shortcomings to broaden your appeal.

Introduce a loyalty or rewards programme

It may require extra admin to offer loyalty rewards, but it can help increase repeat purchases from existing customers, while spreading the word about your brand.

Bundling and sales promotions

Bundling related products or services is a popular way to increase sales revenue. The idea is to encourage a bigger sale by giving customers a deal. For example you might offer a half-priced bucket to anyone who buys a mop. Your profit from bucket sales will go down, but the overall transaction value will go up.

Host events

Invite your customers or clients to events like launch parties, new season previews, demonstrations, or information evenings. There are lots of options. You just need to know what will appeal to your target customers. Events like these often come with built-in sales opportunities.

Get involved in your community

Ever wondered how to increase sales to the potential customers that walk past your door every day? Try going out into your community. Sponsoring or taking part in a local event can raise your profile. Make sure it’s something that aligns well with your product or services and your target market.

Increase your prices

Raising prices can increase sales revenue so long as people keep buying. Of course, a price hike can also bother your customers so do it right. Provide enough notice, and give your customers a chance to buy (or renew contracts) before the price increases.

Let your customers know of any additional value you’ll be offering in return for the extra cost. For example, you might offer extra services or support, more availability, or a shorter turnaround time. Demonstrating improved value will help your customers accept a price increase.

Increasing sales revenue is half the job.

Boosting sales will generally bring more money in the door, but you always need to balance that against costs. If costs go up just as fast, then your profitability will suffer and you may end up working harder without being much better off.

Accountants and bookkeepers can run the numbers and help you figure out how to increase sales without giving up profit.

Things you should know.

The opinions expressed on this page are not necessarily those of Westpac and Westpac does not endorse or approve any goods or services to which reference is made. Westpac makes no representation as to the accuracy or currency of the materials, which are provided without taking your personal financial situation or goals into account. Westpac accepts no responsibility for the availability or content of any third party material to which this page may refer.

Any tax information provided in this webpage is general in nature and for illustrative purposes only; it does not constitute tax advice and should not be relied on for tax purposes. You should seek professional advice on the tax implications of your investments based on your particular circumstances. Westpac accepts no responsibility for the tax consequences of investments to you or any third parties.

Originally published by Xero. Find out more about Xero's accounting software for your small business.