Six tips to boost your SME sales

We all plan to increase the our business revenues every day. Every business owner hopes that the sales will take an upward trajectory. PHOTO | FILE 

In Summary

• One, add complimentary services to your existing products. A complementary good is one whose use is related to the use of an associated or paired one.
• For example, quantity discount is when a customer enjoys a price reprieve when two or more items are bought together. Bundle your discounts based on the bundling strategy we discussed above.
• Seasonal discounts are offered say during back-to-school or Christmas periods. Stripped discounts, where something may have less features than the ordinary one.

By MUTHONI NGATIA
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We all plan to increase the our business revenues every day. Every business owner hopes that the sales will take an upward trajectory.

If your sales can go higher than the previous day each day, it would sooth you.

But, how can you make this happen? Here are some valuable tips:

One, add complimentary services to your existing products. A complementary good is one whose use is related to the use of an associated or paired one.

For example, assume that you lease out tents at events. It follows then that people who will attend the event will need chairs or even food. It would make sense to compliment your tent-leasing business with chair-leasing or outside catering enterprise.

Look at your business, how do people consume your product or service?

VALUE ADDITION

Where can you add value to derive more revenue?

Two, expand your market reach. Many SMEs tend to pay attention only to their immediate surrounding.

While it is good, you may have other ready customers just outside this zone. Take for example a business located in Nairobi, you may find quick customers in Thika or Machakos by just venturing a little outside your catchment zone.

Say you distribute paper in the city, you may find very many willing customers in the town just 20 kilometres from your central location.

Three, consider bundling products. Let’s say you sell suits for men and you are doing great at that.

Consider bundling offers where the suits with shirts, ties or shoes and offering the package at a reduced price compared to purchasing the products separately. This way, you get a higher profit margin.

When you sell products that naturally go together, or are used for the same task or at the same times, consider selling them as a package.

Four, offer special discounts and properly market the discounts. There are many ways to offer discounts.

For example, quantity discount is when a customer enjoys a price reprieve when two or more items are bought together. Bundle your discounts based on the bundling strategy we discussed above.

Seasonal discounts are offered say during back-to-school or Christmas periods. Stripped discounts, where something may have less features than the ordinary one.

Five, rev up your brochures, presentations, catalogues, flyers or banners to bolster sales. A vibrant, bright-coloured document complete with drawings and pictures draws attention and generates excitement.

Dull materials are typically trashed without a second thought. Review your sales materials, item by item, to see whether they convey the image and message you want to present to your customers.

POWERFUL INCENTIVES

Do they adequately portray the advantages of your products by linking features to benefits?

Do they convey a sense of urgency with easy instructions for purchase?

If your presentations, product data sheets, pictures, or website don’t simply and clearly present information, which will spur your prospects to take action, it’s time to redesign them.

Six, you can incentivise your sales force by rewarding the superior salespeople with higher commissions.

A compensation plan of this sort aligns the company’s and the salesman’s interest.

The promise of an even higher income as sales grow is a powerful incentive to make more sales.

For a temporary boost in revenues, create a sales contest where the salespeople compete for a cash prize, a luxurious trip, or some other desired perquisite if they reach a targeted level of sales or new accounts.

If successful, follow one contest after another with a different prize each time.