My wife and I bought our store in Sept 2003. The store had been in existence for 15 months but had really not done a good job with advertising. Last summer, we decided to embark on the personal mentoring program with Jay. Our mentor was Dane Ing, a very knowledgeable, enthusiastic and very insightful mentor. We have had some phenomenal success so far from the program.
Dane offered many ideas and suggestions, both new and expansion of things that we were already doing. Our average sale was approximately $15. Since beginning the program, our average sale had risen to $39, an increase of 260% before we began the mentoring program.
One of the new ideas was offering coupons when a customer makes a purchase. We have been offering a free bonus (changes weekly for testing) when the customer purchases $25 or more. Our success rate has been between 45 and 60% will buy enough for the free bonus.
One of the most successful idea was an expansion of something that we were already using. We give a free 8 oz candle every time a customer buys $100 worth of products. Since about 90% of our customers will spend over $100 in a lifetime (in fact, so far this year, almost 20% have spent over $100 in the first 9 months of the year), most of our customers will get at least 1 free candle.
Dane suggested that we offer an up-grade to a 16 oz candle for the $4 difference between the two candles. When we offer this upgrade, we physically show the customer the difference between the two candles and explain that they are getting twice as much for only $4. The value of getting twice as much of a candle while only paying half the cost of the smaller 8 oz candle is usually to hard to resist. Two out of three customer's upgrade. By the way, we make a small profit on the 16 oz candles where we had been "losing" money on the "free" 8 oz candle. Of course, we weren't really losing money since we were gaining customer loyalty.
Finally, Dane helped us develop a marketing plan. This plan has allowed us to make 50% of last years sales in the first three months of the year. Since it is a living document, we have modified our marketing plan to take advantage of the methods that are working.
I would recommend the mentoring program to anyone who is serious about expanding your business.
- Mark C. |