GROWING YOUR BUSINESS THE SMART WAY3 specific ways to do it

Three Ways to Increase Your Sales and Grow Your Business

Increase the number of customers Increase frequency of Repurchase Increase the average value of the

transaction

Three Ways to Grow your Business

INCREASE Numbers of Sales

1,00010% Increase

1,10033% Increase

1,333

INCREASE Value of Sale

10010% Increase

11025% Increase

125

INCREASE Frequency of Repurchase

210% Increase

2.250% Increase

3

How Do I Increase Sales?

Number of customers

Attrition and Frequency of Repurchase Value of the transaction

Maintaining Your Old CustomersAttrition

Reducing attrition should be part of every company strategy, but it is almost universally neglected.

What is Your Attrition Rate?

If you have 500 customers this year

If you lose 100 customers per year

Your attrition rate is 20%

What Do You Have Now?

Current # of Customers Average Repurchase Total Sales Sale frequency %

500 $150 120.00%(1.2 times) $90,000 100.00

Profit with current repurchase frequencySales or revenues $90,000 100.00%

direct costs $(34,200) -38.00%

Gross Profit $55,800 62.00%

indirect costs $(9,000) -10.00%

Profit $46,800 52.00%

Operating expense $(18,000) -20.00%

Profit before EBIT $28,800 32.00%

Value of your Current customer base

What can you expect?

Normal Customer attrition Price Increase Average Repurchase Increase Frequency -10.00% 10% $15 15% 1.50 ( from 1.2 times)(500-50

Customers 450 10% $165 15% 1.5 $111,375

Extra Sales $21,375Profit with increased frequency and loss of 10% of customersSales or revenues $111,375 100.00%direct costs $(42,323) -38.00%Gross Profit $69,053 62.00%indirect costs $(13,123) -12.00% marketing etc.Profit or Contribution $55,930 50.00%Operating expense $(19,000) -17.00%Profit before EBIT $35,930 33.00%

Extra Profit $8,130 7.30%

Value of current customer retention

Problems

Problems in Auto Repair Industry

Auto repair and servicing is a blind item which requires solutions that are not easily addressed to - or understood by - the general public:

All this creates mistrust, anxiety, and uncertainty among consumers.

A recent AAA survey states the 25% of all car owners feel that they cannot afford to repair their cars.

Why Did They Stop Buying From Us?

The did not get a comfortable feeling when they came in

They do not understand that the costs may vary from your estimate once you have inspected the vehicle

None or limited communication with customers that have not come in at least once a year

They no longer feel they benefit from your shop

They are unhappy with your company

Don’t know of your new offerings

You are not giving them any new reasons to buy

Competition doing more and better promotion and marketing

How to Reduce Attrition

Frequent Communication with Customers Emails and/or Email programs

Direct mail

Telemarketing

Advertising

Website

Social media

Increase Your Customer Retention Rate

Greet all customers when they arrive

Keep a personal diary of major customers and their needs and personal matters

Delivering higher than expected level of customer service by carefully explaining up front and in writing at the end the reason for the charges and making sure you have their email addresses

Communicating frequently with your customers to nurture them especially after a visit for a repair

Increase the Frequency of Repurchase

Contact Inactive Customers

Running Special events and information nights

Price or gift inducements

Programming customers with Loyalty or programs including price inducements for frequency

Develop backend products

Communicating personally with your customers ( telephone, letter, email social media, etc.) to maintain a positive relationship

How Do I Increase Sales?

Frequency of repurchase

Increase Number of customers

Value of the transaction

The number of customers can be increased by Referrals Increasing the lead or inquiry generation Increasing the customer retention rate Increasing the conversion from inquiry to sale

Increase the Number of Customers

How to Increase Number of Customers

Unique selling proposition

Advertising

Increasing number of leads guaranteeing purchases

Delivering higher than expected levels of customer service

Preemptive marketing Direct to consumer /business sales visits

Using public relations

Increasing value through better customer service

Increasing perceived value through better customer education

Social media

Website

Increase your Lead/Inquiry Generation

Referral systems

Acquiring clients at breakeven and profits on the back end

Guaranteeing purchases through risk reversal

Host beneficiary relationships

Advertising

Using Direct mail

Telemarketing by you or an outside firm or person to make appointments

Special event and information nights. Join the local Chamber of Commerce

Using qualified lists that target your prospects

Increase Your Conversion From Inquiry to Sale

Increasing sales skills of your staff

Qualifying leads upfront

Making irresistible offers

Educating your clients by giving them reasons why

How Do I Increase Sales?

Frequency of repurchase

Add-ons

Number of customers

Value of the transaction

How to Increase the Average Transaction Amount /Sale

Increase your prices, and hence your margins

Upsell and cross sell

Offer greater or larger units

Change the profile of products to be more upmarket

Use point of sale promotions

Package complimentary products/services together

Put less expensive impulsive products in strategic and counter locations

Results : Value of working your plan

Sales Goal weekly $2,500 Weekly Daily

# of phone calls 100 100.00% 20 100.00%# of persons visited/contacted 30 30.00% 6 30.00%# of presentations 20 66.67% 4 66.67%# of presentations to decision makers 15 75.00% 3 75.00%# of sales 5 33.33% 1 33.33%Average sale $500 Total sale $2,500 $500

Reaching your goals

10 Steps to Grow Auto Repair Shop Sales

#1: Avoid the HIPPO

#2: Cut traditional media

#3: Talk less about you and more about customer needs and wants

#4: Stay focused on marketing

#5: Pay attention to ROI

#6: Analyze everything about customers

#7: Sharpen your axe

#8: Interact with existing customers

#9: Increase your pricing

#10: Have a plan

The Biggest Hurdle to Getting Extra Sales

Commitment

Focus

Consistency.

Summary

There are only three ways to grow your business

Increase number of customers

Increase average value of transaction

Increase average frequency of repurchase

Available Take Home Information

10 Steps to grow Auto repair shop sales Value of Improving Customer wait time experience Improve your return on marketing

Other material 50 retail marketing ideas Monthly ideas Techniques to increase sales Sales promotion in todays economy

Just email us at info@scoresb.org , goldmanmarketing@cox.net or go to our website www.sbscore.org

for the all or any of the enclosed promotional materials or discuss with your personal counselor /mentor.

How Can Score Help You

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If you are interested in FREE Local Mentoring/Counseling:1.Go to our website: www.sbscore.org2.Click the green box: “Request a meeting”3.Fill in the information requested4.Click ‘Submit”5.You’re done. You’ve registered to receive mentoring services, and normally within 48 hours you will be contacted.