How to use the Speed of Consumption to increase sales


It’s a given that the frequency of your sales and the speed of you sales determine your gross income.

How ever one factor that we usually forget about is the speed of consumption. The time it takes for a customer to “use” your product or service and then come back into your business again really determines the speed of sales doesn’t it?

A great example of this is in the food industry, or the perfume industry. How long does it take for the customer to consume your product before they need to make another purchase? If you’re in a service based industry this rule also applies.

If you’re in the personal training industry, how long does it take a client to use all of your sessions?

If you’re in accounting, how many times does your client need to see you per month?

If you’re in printing, how long does it take for your client to use all of their printed media before then require another run?

Dwelling into this questions is extremely powerful and may make you rethink your pricing structure. Think about it, if it takes your client 4 weeks to consume your product or service which is priced at $100, for easy math sake. That equals out to a cash injection every 4 weeks of a $100. Well what if you were to decrease the size, or the amount of your product or service by 25% and only dropped the price 10%?

Well now your client will be returning every 3 weeks with a purchase of $90. Pan this out over the course of 6 months and you’ll be making quite a bit of extra dosh! For example:

You could be making: $600 per 6 months with a $100 per purchase with a consumption speed of 4 weeks
OR you could be making $720 per 6 months with a $90 per purchase with a consumption speed of 3 weeks by lowering the “amount / size” of your product or service by 25% and only dropping the price by 10%

Too many business owners are to quick to apply the “Buy in bulk and save” strategy. They don’t think long term, they’re in the realm of thinking about instant gratification, cash now. Rather than looking in the long term future and running the figures out over a 6 month or 12 month period. Yes you make more money now but how much are you losing in the long run due to the speed of consumption?

The above example showed a decrease of 20% on a $100 sale over the course of 6 months compared to a $90 sale.

How much are you losing by offering your customers to much of a good thing? What increase in profit would you generate by pulling back your serving size and decreasing the prices by 10 or 15% to match accordingly.

Think about it 😉


Jamie Stenhouse
Jamie Stenhouse is an Entrepreneur and Marketer who specializes in assisting business owners and clients to generate customers online – in any industry. With a sharp mind and high value on creating profitable results in the online marketing arena
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