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What Would Happen If You Could . . .

High Average Sale 2008 The Garden Center Group

What does it take to get the dramatically higher average transactions shown by the green line on this chart from The Garden Center Group ?

What would happen if you could increase your average transaction dramatically THIS year?

To find out what would happen do the Merchan+ Ma+h

2008 Average Transaction $_______

Plus $5     = $_______ x ___________  transactions = $___________

Plus $10  = $_______ x ___________  transactions = $___________

Plus $20  = $_______ x ___________  transactions = $___________

Yes, the high average transaction in the chart represents exceptional results that you may not be able to achieve consistently. Certainly, it will take time and effort. 

The real question is this. Are you willing to consider the possibility that you could increase your average transaction more than $5 ?

A dramatically higher average transaction is only the result of more BIG transactions.

The average transaction is simply the result of dividing your total number of transactions by total sales dollars. This provides a benchmark of your performance for comparison or improvement, but for most companies is a low bar to reach for.  A February 15, 2009 blog posting titled ‘Hoping for a Rising Average’ shows that sales increases caused by selling larger plants, and by applying a markup to increased costs barely keeps up with your increased costs of doing business. You may have already learned that adding product categories increases average transaction, but usually does not lead to increasing profits.

Garden Center financial consultant Steve Bailey has said,“When staff and customers have personal relationships between them it is easier to sell higher margin items and larger projects which should lead to higher profits.” The effort to develop these relationships has to be greater than garden centers typically assert. Exceptional results will require exceptional efforts.

Every garden center gets large sales occasionally, and those are certainly memorable. The road to an exceptional average transaction is to create the selling environment and customer encounter where those larger sales occur more frequently and consistently.

Is it worth the effort and investment in your people to do this? What did the Merchan+ Ma+h exercise above show you? This exercise is meant to demonstrate a large opportunity in the form of latent potential to sell more to your customers. The chart shows that someone else is doing exactly that each week.

Promotional Message: Click here to download a ‘Get a Client Advantage’ brochure and registration form then come to Columbus Ohio March 4-5 and find out exactly how to get more and bigger BIG sales and a higher average transaction. – Call me at 888-339-7456 with any questions.

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