Tip #3 - Package Your Sales
Here is a tip that will not only increase your sales, but increase your overall sales margins at the same time. Bundle related inventory items into a "Package" (i.e., a single level bill of materials). Be sure to select both high and low margin items, and be sure to assemble a package that has appeal to your target customer base.
A consumer electronics business might "package" a receiver, a CD player, a tape deck, and two speakers. This package would include the hottest CD player on the market. The one that is being so heavily discounted all over town that nobody is making a profit on it. The package might also include some private-label speakers that have incredible margins. The "Package" could be very attractively priced for the consumer, yet still allow you the retailer a tidy profit.
Home centers an do the same thing with "Spa Packages", or various "Home Improvement" and "Do-It-Yourself" packages. Mail order and catalog businesses have many similar opportunities. The beauty of the "Packaged Items" feature is that it enables you to swap items in the package, or even create brand new packages, right at the sales workstation while you are taking to the customer!
When packages are sold, your inventory, purchasing, sales and accounting records for each item in the package are automatically updated.
Packaged Items Profit Questions
- How much could we increase our sales and margins by bundling popular low margin items with slow selling/high margin items?
