Megan Auman's Maya Necklace | Photo Source: meganauman.com
Let’s help you make more money, shall we?
Two questions to start: How many customers did you serve this July, and how much total revenue did you bring in? Time to calculate your average revenue per customer.
For example, if you grossed $4,000 and served four customers, you’ve earned $1,000 on average, per customer. It starts to make you think: How many customers make your business really hum? Do you have the capacity to serve eight customers—and double your income?
Not all businesses can easily double their customer-base, so they need to think about how to increase revenue per existing customers.
Let’s say you’re running a coffee shop serving 200 beverages per day, making $3 per day, per customer. It’s probably hard to double your foot traffic, but if you added point-of-purchase treats, you could bring your average income per customer up to $4. That’s a 25% increase on revenue with marginal costs and effort.
If you're selling crafts or jewelry, Megan Auman, founder of designinganmba.com, recommends packaging sets of goods into bundles at a slight discount. She might sell a single bangle for $90, but also have a listing for a group of three for $240. It’s a lower cost per item, but a higher gross per customer.
Fine-tune. Do you need more customers or more projects to increase your earning per customer?