We have tried this method in our clients' shops, and it works well.
The Average Basket Size (ABS) calculation is the total number of items sold divided by the total number of transactions. Increasing the number of items per basket is one of the simplest ways to improve your shop's turnover.
The typical Basket Size for an SMB Retail Business in Australia is about 2.54 items per basket; during COVID, it increased to about 2.7. I have not seen any figures since, but I suspect it has decreased recently.
If you do not yet have a POS System, use this to measure the Average Ticket Size (ATS) calculation. This is your total turnover divided by the total number of transactions.
One effective strategy to increase this figure is cross-selling. It is simple to do in retail, place complementary items beside high-demand products. You can quickly boost your revenue and profit margin by upselling or providing helpful cross-sells. This approach works well as it does not introduce anything new in the shop and requires no extra expenses.
Here's how to put it in place:
Firstly get your top sellers. This is not going to work with slow sellers.
Go to Register Reports.
Now select "Top N Stock Sales for a Given Period."
Now put in the last three months and ask for the top twenty.
Now go to the sales register reports section here.
and select the stock companion report
Put in the last three months, start putting in your top-selling items, and ask for a complete listing. Now go through the list carefully. Take notes of those items that sell well with the top sellers. We call these companion items. Select the ones that look promising.
Now ensure they are positioned next to or within easy sight of the high-demand things. It's essential to make them visually appealing to potential customers.
You should pick up some sales as people taking these top-selling items will be attracted to these companion items.
It should take you less than 20 minutes to do it in your shop, so start now.
