Like most home owners, I’ve been to Home Depot more times than I can count. Inevitably you walk in for some light bulbs and end up coming out with the leaf blower you didn’t realize you needed. However one of the last few times I went, I picked up a clever strategy Home Depot is using to increase their sales and resulting profits.
I was in the paint aisle and I noticed right underneath the paint buckets there was a “how to” booklet. It explained how to paint your room or how to paint your house, for example. In addition to the tips, it went on to educate you on which colors you want to pick for which rooms. For example, whether you might want lighter colors or darker colors in particular room in the house and the impact it would have. It also stated that you might need cleaning supplies and it listed several cleaning supplies you might not know you need to successfully paint your house (without a big mess). It went on to say you might also need a ladder, a drop cloth, tape, certain tools, etc. As I was reading this rather exhaustive list, I was thinking isn’t that convenient that Home Depot sells all of these items. They essentially had created a giant check sheet explaining to customers that if they were going to be painting their house, there were certain products they might need and by the way, we sell those items! Why would Home Depot be doing this? One, it is providing information for their customers to do a better job at their home improvements and two, they are giving themselves a check sheet to increase the average dollar sale for their customers. When a customer is on the paint aisle and notices the booklet and sees that they need six other products to paint their house, guess where they’re going to go to get them—the next isle over! Home Depot is getting a larger sale out of it and their customers are happy to conveniently pick up all the items they need at one store. This makes happy customers for Home Depot AND increases Home Depot’s revenue and resulting profit!
My question for you is how can you in your business increase your average dollar sale for your customers? How can you help serve them better by having some sort of “how to” manual that gives a check sheet of all the different things you sell that they could benefit from? What is your version of the ‘how to paint your house’ manual from Home Depot? If you can’t seem to figure it out contact us and we will definitely help you out.
We offer a complimentary 2-hour strategy session (a $2000 value) for businesses that want to look at opportunities in their business. We can chat briefly about the details of that session to see if it would be beneficial for your business.
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