How To Improve Your Sales Turnover
It's down to two core components ...
POSTED BY JONATHAN VOWLES ON 15/01/2019 @ 8:00AM
When you are in business, one of your most important numbers is sales. Sales turnover is the product of the number of things you sell and the price that you sell them at ...
You can improve your sales turnover by selling more or raising your prices!
copyright: nexusplexus / 123rf
Sorry to state the obvious, but I'm doing it for a reason: to make you think about the building blocks that form your sales. All of which leads to two distinct questions.
Can you make more of either of these two building blocks?
Make more sales
Increasing either of the two core components of your sales means that the total value of sales goes up, and so does your profit. Effort spent in increasing sales turnover is very worthwhile.
"What techniques can you use to increase the number of times you make a sale, or to increase the price of what you sell?"
Part of the problem here is that some businesses have more control over these two variables than others. Equally, some businesses perceive the choice as not being in their control, which is a very different issue, but has the same effect.
Regardless of what it is that your business does, think about your customers and your products or services, then think about what you can do to sell more:
Can you sell more often to the same customer?
Can you simply sell more to your current customers?
Do you need to carry out a marketing exercise to get more customers?
Having identified some strategies to increase your sales volume, you then need to think about what these strategies are going to cost you, and what income they are going to produce. After all, it is no good spending on advertising in glossy magazines if the additional sales don't cover the cost of the advertising.
So, to answer my own question: making more or additional sales is worth a lot, because of the extra profit it brings in. You also need to look at what you have to do to get those additional sales - to identify if the cost is worth it - or if the gain in sales is worth it!
"Would you like to know more?"
If you'd like to find out more about raising your sales turnover then do give me a call on 01234 752 566 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking for a new accountant to help grow your business, do visit www.jvca.co.uk and discover how Jonathan Vowles Chartered Accountants can help you!
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas … and can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.