5.15.80: DISCIPLINE #6 INCREASING THE Size of Purchases - WILLIAM EASTMAN

Today we continue Discipline #6 - Aggressive Marketing & Sales. Last week we focused on the frequency of purchases, today the focus is on increasing revenue of each purchase. Imagine the double hit - buy more often and more in each purchase.

This the last step in the process of moving from a good business to a leader, a market dominator. Up to now you have revisited and improved both your market coverage and share of business. Then you sliced the market and your offer into smaller pieces. Now you are ready to get aggressive.

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INTRODUCTION
We are covering Discipline 6 in the 3 parts: Frequency of Purchases, Size of Purchases, and Margin of Purchases. 

Today's Show is Part 3 in the process:  Size of Purchases

OBJECTIVES
One thing you need to consider and use to evaluate your readiness for this step. You have been collecting information on customer buying habits to enhance persona and combined can provide reasonably accurate data.

​This allows you to analyze the data statistically and eliminate allot of train and error and get to a winning solution faster. 

Owner/Executive Perspective

1. What is the impact on revenue and profitability for increasing the size of purchases?
2. What are my options and when should I use what?

What You Need to Know

• Know Your Numbers
  • Recency of Purchases
  • Frequency of purchases
  • Margin of Purchases
• Statistically compare buying patterns to isolate variables you can effect
• Run several test campaigns (A/B Testing) to to determine right mix

What You Need to Do​​

1. Adjust JIT to have the right stuff and promote it.
2. Layout of store / purchasing area to drive up impulse buying
3. Timed Discounts - only now and only when inside your property
4. Bundling - move away from larger single items toward more smaller items with a large overall price
5. ​Price Increases
6. Upselling Promotions - buy 1 thing at higher price for a 'free' throwaway
7. Personal Buyer - preselect items for review prior to purchase
8. Loyalty Program

Next Week - Discipline #6 - Part 3: Increasing the Margins of Purchases. If we have increased the frequency and size of purchases the only thing left is improve the margin. Don't miss it!

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Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.