Skip Ribbon Commands
Skip to main content

The average value per sale is one of the drivers that impacts turnover.

For starters, we need to know what the average value per sale is for our business, as well as every sales person (if we have sales people in service).

The calculation is straightforward:

For the business: Total sales for any given period (day/week/month/year) divided by the number of sales transactions for the chosen period of time

For an individual sales person: Total sales for any given period (day/week/month/year) for the individual divided by the number of sales transactions for the chosen period of time

With these figures in hand we can start to benchmark our performance and also make plans to increase this amount and set targets.

Here are five options to consider for improving the average value per sale in your business:

  1. Teach your point-of-sale and sales staff to upsell.

    You might choose to have ‘standard upsell’ products and services. In this way it becomes easier for your staff to remember what to offer clients. Think of McDonalds, who will always ask you to upsize your meal.
  2. Advise clients to make an add-on purchase

    This is a clever and value-added way to increase the value per sale. The easiest way to facilitate this is to use a checklist to help clients to make sure they have all parts or elements to effectively use a product or service. Think about clients who have a DIY project to install a freshwater tank at their home. Apart from buying the tank, they might need pavers to secure the surface, a leave catcher, a first flush diverter, downpipe elbows, an outlet tap, fittings to decrease the outlet tap to latch on to a hosepipe, seal tape, et cetera. By doing this you are providing the clients with useful advice, saving them time and potential money by helping them to purchase the right components to implement their projects.
  3. Package a deal

    Take the example above. By offering a complete freshwater tank installation kit you can discount the package (receive a smaller margin, but increase the quantum of the sales value every time). It provides a client with the convenience of a turn-key solution at a discounted price.
  4. Sell post sale value

    Example 1: motor vehicle: Offer the client an extended warranty, or service plan, or even short-term insurance when he/she purchases a vehicle.

    Example 2: home maintenance: Offer the client a service contract to maintain a newly-built house (roof cleaning, painting, wood maintenance, etc.) when they take occupancy of their home.
  5. Pricing strategy

    We do not necessarily have to offer the cheapest product or service. Re-evaluate your current pricing strategy and look for ways to increase the perceived value you can add when increasing your prices. Remember, clients do not only purchase on price, but also on convenience, brand promise, ego value, familiarity of the product/service and package reusability, to mention a few. Also compare your prices to those of your competition.

Maybe this statement of Zig Ziglar (American author, salesman and motivational speaker) holds true: "Stop selling. Start helping.

To support business owners with the important task of business planning, Sanlam gives you free access to the book Your Annual Business Game Plan for Success, which provides an easy and straightforward framework needed to draft a well-crafted game plan that will create the positive change and growth necessary for business success.

Go to to download your free copy.

Article written by Jannie Rossouw, Head: Sanlam Business Market



Interest rates : relief in sight?Interest rates : relief in sight?, /businessblog/PublishingImages/InterestRates_ArticleBlogBanner.jpg7/28/2016 10:40:11 AM068725aspx’s been a long, although not especially steep, grind higher in interest rates since early 2014, when the South African Reserve Bank implemented its first interest rate hike of the current cycle.
2018 needs MORE of YOU to make it the BEST business year EVER! 2018 needs MORE of YOU to make it the BEST business year EVER!, /businessblog/PublishingImages/2018NeedsMoreOfYou_ArticleBlogBanner.jpg1/23/2018 1:08:55 PM0169736aspx’s January and you, therefore, have permission to create a whole new you before creating a whole new business. Throw away all the outdated plans, your old thinking and start afresh.

 Related Posts



Top challenges and trends in the SA SME economyTop challenges and trends in the SA SME economy, /businessblog/PublishingImages/SmallBusiness_ArticleBlogBanner.jpg2/17/2017 1:18:29 PM015185aspx6462 are the driving force of South Africa’s economy and there are developments to help them succeed faster. However it’s not easy and business owners still face significant challenges.
Volunteer WorkersVolunteer Workers, /businessblog/PublishingImages/LabourNews2_ArticleBlogBanner.jpg7/14/2016 12:46:25 PM015186aspx5007 workers, including unpaid volunteers, have a constitutional right to fair labour practices. Yet, "unpaid employees working for charitable organisations" are specifically excluded from the provisions of the Basic Conditions of Employment Act.

 Most Read

Sanlam Life Insurance is a licensed financial service provider.
Copyright © Sanlam