Do you know what your average sale per customer and your average items per transaction are in your store? These might sound like things an accountant would ask you, but these are two numbers that every employee on your floor should be aware of. These key indicators can tell you a lot about the spending habits of your customers and the skill with which your employees assist them. Knowing these values will also help you to recognize if your sales are going up or down, and give your staff a benchmark to instantaneously measure each transaction. Here's a look at how you can use this information to not only boost sales, but also the morale of your employees and the experience that customers will have in your shop.
Most shops that use a computerized system to process transactions and track sales have the ability to run a simple report that can discern daily or monthly averages for both items per transaction and sales per transaction. If your shop doesn't use a system that can do these computations, you can do some simple math that only requires a calculator.
To find out your average sale per customer, take the total sales for the day and divide it by the number of sales transactions. Example: $1,565.55 total sales for the day divided by fifteen transactions, equals $104.37--the average sale per transaction or customer.
Items per transaction may be a little harder to figure out, but only because you need to track the number of items sold. Once you have the number of items sold per day, divide it by the number of transactions. Example: 56 items sold divided by sixteen transactions equals 3.5 items per transaction or sale.
At the outset, it may seem as though communicating your items- and sale-per-transaction averages may be setting your staff up to become pushy salespeople. Typically the selling atmosphere in a skate shop is anything but high-pressure, and by all means it should stay that way. However, having employees who take time with customers to identify their needs and make the proper suggestions for items that will enhance their skateboarding experience can have the residual effect of increasing both of these key indicators. At RDS Skate Supply in Encinitas, California, Manager Syd Clark believes that pushing sales on customers is not how to build long-lasting customers. "Our employees are instructed to take time with the customer to make sure that they get exactly what they want," he says. "We make suggestions, but they are based on what the customer says they want."
For some employees, suggestive selling can feel awkward and even cheesy at times. But your employees should understand that they have an obligation to ensure that your customer has the best possible experience when skateboarding. The more enjoyable you make their experience through proper equipment choices, the more likely they are to get hooked on skateboarding and become a consumer for life. Your customers are counting on you to enhance their skateboarding experience. For Manager Jeffery Avila of Jungle Skate Shop in Guatemala City, Guatemala, this obligation is a way of life. "We have many new and first-time customers in our shop who rely on us," he says. "Sometimes it can be hard to tell them why a skateboard from our store is better than one they can buy for much less at Kmart, but we really believe that we are doing them wrong if we don't." When employees share this belief, it becomes easy and natural to suggest items to the customer.
Common sense should be your guide when making suggestions to your customers. If you're selling a new complete to a first-time skateboarder, offering an instructional video makes perfect sense. The video is more than just an add-on sale, it's also a great introduction to skateboarding. The same goes for safety equipment. How many parents will encourage their kids to keep skateboarding if they bust their head open during their first week? Every product in your shop has some sort of connection to another producct, and what may seem like common knowledge to you may not be the same for your customer. Asking the right questions can help you to make suggestions that properly fit your customers' needs.
At Hanger Eighteen in San Diego, California, Owner Ken Lewis says there's a fine line between hard-selling a customer and suggestive selling. "We just throw it out there and see what sticks," he says, choosing to stay on the suggestive side of the line. "We keep them informed about what we have to offer, and if they want to buy it, great. And if they don't, that's fine, too." Some of the items that Ken offers up are based on his own experiences. "I always seem to recommend skate tools because I remember what it was like using and losing my dad's tools. It's an easy sell because I believe that it's important."
Increasing your items-per-transaction average can be easy when you have product that you truly believe in. PJ Ladd's Wonderful Horrible Life video is what they believe in at Coliseum skate shop in Massachusetts, and they make sure that nobody leaves without it. "Every shop has something they feel people can't live without," says Owner Matthew Roman. "For us, it's PJ?s video, and we don't just feel it's an add-on sale, but that it's a necessity."
Making sure that your employees are aware of your store's items- and sales-per-transaction averages can do more than just increase your overall sales. These numbers give each employee a way to measure each sale and their personal performance in regard to selling. If your store uses a system that is able to track individual sales for each salesperson, this information can be used to reward employees who stand out and perform above your store's average, and help identify those employees who may need further training to hone their selling skills.
Joe Chester, troubleshooter for the eight Industrial Ride shops located in Arizona, New Mexico, and Nevada, feels that items per transaction is the most valuable gauge for their shops. "This one number gives us information that can be used in so many ways," says Joe. "We use it to monitor sales in each of the stores, reward employees for performance, and identify shops and employees that need extra attention or training."
By taking the time to identify your store's sales-per-customer and items-per-transaction averages, and more importantly, sharing them with your entire staff, you'll put your shop in a position to increase both sales and your level of customer service. You might be amazed at the attention your employees give your customer when they have a benchmark to shoot for. Once your employees internalize the belief that they have a responsibility to ensure that your customer buys products that will best fit their needs and heighten their skateboarding experience, suggestive selling will become second nature.
