Biznostics' Business Empowerment Series | Part 3 - Increasing sales
Too often when it comes to increasing sales, we think we need to spend more money on advertising and marketing.
The good news is that this is not always the case.
By working smarter, there are many things you can do to increase sales in your electrical business - that won’t cost you a cent.
To get you started, here are 5 ways you can grow your sales without spending any money…
1) Focus on converting more of the opportunities you already have
Too many electricians focus on getting more enquiries rather than focusing on the opportunities that are already coming their way. Think about it. You have already spent the money and done the work to get the enquiry, so you should be doing all you can to turn that enquiry into a sale.
For example, let’s say on average you are winning 3 out of 10 jobs. If you could win 4 out of 10, your sales would increase by 33%. It is about focusing on your conversion rate, which is one of the drivers of your sales. To improve your conversion rate, consider things like:
- Creating a point of difference
- Following up on your quotes in a timely manner
- Making your quotes stand out from your competitors
- Improve your sales process
- Do some sales training
Each of these will help you convert more of your existing opportunities.
2) Offer add-on sales
Getting additional sales from an existing customer is one of the easiest ways to increase your sales and make the most of the opportunity in front of you. After all, you are already talking with the customer on the job, so be proactive and ask a few more questions to find out what else they may need from you.
Make it easy on yourself and your customer by using a checklist. That way you are not leaving anything to chance. A checklist will help you cover all the bases and it shows you’re prepared. The checklist could include safety items, commonly requested items or complementary items for the work you are already doing. One of our electrician customers implemented a checklist recently and was able to upsell 3 jobs, earning an extra $700!
The great thing is these extras are usually more profitable as you are can complete the additional work when you are already on site.
3) Target repeat business
Targeting existing customers is a smart way to generate additional sales. It is generally easier to win the work, plus you build a long-term relationship with your customer.
For larger customers, a simple way to do this is to call them and make a time to meet with them to see what additional work they may need.
If you have lots of smaller customers, consider running a promotion to your past customer list / database with something that may be relevant to them. Consider making an offer with some urgency (e.g. limited in number or by time) as this will more likely cause them to take action right away.
4) Ask for referrals
Referrals are a great source of new business and an effective marketing tool. If you are already getting word of mouth in your business, a little more focus and energy in this area can really increase your sales. Just imagine if each of your customers referred just one person to you in the next 12 months … your business would double!
By proactively asking for referrals or even organising a referral program, you can potentially generate a greater number of leads which can translate to considerable returns.
Referrals don’t just have to come from your customers. You could ask friends and family and also people you know in your business network.
5) Look at your pricing
When was the last time you reviewed your prices? Not every business can put their prices up, but many can.
To make an informed decision on where you may be able to adjust prices, you need to know:
- What are your competitors charging?
- What pricing can the market bear right now?
- What are your costs compared to what you are selling (and the profit margin you want to be making)?
- What areas of your market are not saturated with your competitors, so that you have room to move?
You don’t necessarily have to increase all your prices across the board. There may be some areas in labour or materials than you can increase and others that will remain the same. Remember, every $1 you increase will go straight to your bottom line. These small increases can add up to a lot over the course of a year.
Any increases in pricing should be small, not large, so that they are hardly noticeable (ie. 10% or less). The market is much more accepting of this.
In some cases, particularly in the current economy, it can be better to work at decreasing the cost of bringing your product or service to market, and therefore increasing profit margins that way.
By targeting these 5 areas and consistently working on these, over time, you’ll grow your sales and make more profit … and best of all, it won’t cost you a cent.