Exponential Sales GrowthOct 26, 2021
Most dry cleaning owners I meet with are shooting for linear sales growth year after year. Maybe it is 5%, 10%, or 15% growth in sales from the previous year. These same owners have heard of exponential sales growth, but achieving them remains somewhat of a mystery. Until now…..
To achieve linear growth, we usually change one thing that will yield a different result. For example, we might create target mailers to get new clients. Or we might start batch texting to give clients simple reminders. We keep trying different tactics until we achieve our desired growth percentage, and then most of us go on to something else.
But there is a better way! As we have discussed before, there are only three ways to increase your sales:
- Get more clients (ideally similar to your top 20% of clients)
- Get them to use your services more often
- Increase the monetary value of each visit
To explain exponential sales growth and how to achieve it, let me use a simple example:
You have 100 clients that visit you 30 times per year and spend $30 on each visit.
100 clients X 30 visits X $30 on each visit = $90,000 in sales
If you increase each of the three growth factors by 10%, the equation changes to:
110 clients X 33 visits X $33 on each visit = $119,790
What is the sales increase? 10% - nope! 30% - nope! The sales growth is $29,790, which is a 33.1% growth. This is how exponential growth works. When working together, you choose multiple growth factors, and they achieve more growth than the sum of growth for each factor.
Really think about this. It is critical to understanding how to rapidly grow your business…. Or anything else. You want to lose weight? Great! Look for smaller increases in exercise, food intake, and water intake. Working together, you will lose more weight than working on one factor individually.
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