The following outlines basic selling strategies:
Cross-selling: Consider what additional items can be offered to add value and help the customer get the most out of the purchase.
Upselling: An effective way to upsell is to offer good/better/best tiers, such as silver, gold, and platinum.
Bundling: Items or services bundled together into a single purchase adds value for the customer. This will make products and services more attractive, create a higher perceived value for the customer and increase your average transaction value.
Working margins and pricing: If a business wants to increase the average transaction amount, they must firmly understand their margins and how the bottom line is impacted. Avoid discounting and price wars as a strategy to maintain and increase the average sale value. Consider the following:
If the margin is presently 35% and prices are reduced by 10%...
To produce the same profit as before the discount, the sales volume must increase by 40%. That is not to increase profit, it is just return to the pre-discount profit margin. It is unlikely that a 10% discount will spur an extra 40% in sales.
On the other hand...
If the margin is presently 35% and prices are increased by 10%...
Sales can decrease up to 22% while maintaining the same profit.
Data indicates that only 15% of the market actually purchases based on price alone. It is important for businesses to differentiate themselves in the market, and show why their products or services are worth more. Sales could actually increase ― even with a price increase. The product could also start to appear more valuable. Increasing rather than decreasing prices could be worth further investigation.