It seems that everywhere you turn nowadays, there is a billboard advertising for what is called “high ticket sales”. These high ticket sales are promotions for products and services that are out of stock, are limited in supply, or otherwise are hard to come by. Typically when these high ticket sales occur, there are not enough customers to keep the store open through the sale. They are used to fill the seats that would otherwise be empty.
Some people get confused by what is called a “high ticket” sale since the term can apply to any sales situation and has nothing to do with store traffic. However, there is some logic to how store sales work. Store sales generally result in some sort of end-of-day sales figure.
The question becomes then, where do you find such numbers? Well, the answer is simple: retail stores. Retail stores do not have to worry about end-of-day sales as they generally operate on the same day, same week schedule. This means they always have at least a full week of sales left over for the next week.
The only way that these store sales are consistent is because the owners of the store know their product well. In fact, they should know their product so well that they can predict pretty accurately what the sales will be on any given day. If they don’t know what their product is like, how can you? Then they should be studying their sales figures closely. And if they see a downward slope in their sales, they should take action to change their business model, perhaps move it to a different city, increase stocking times or offer more discounts.
But if the high ticket sales are only going up temporarily, then the store may be experiencing a temporary shortage of customers, but the supply of those customers is not increasing, and in fact, maybe decreasing. In this case, what would be the best course of action? If you’re not sure, consult a retailing expert who can help you understand what is happening in your industry.
It is also important to remember that the sales figures you see are gross sales, not net sales. Net sales may seem like the better number, but it may actually mean that your actual cost to sell a product is higher than what you reported on your income statement. Remember, when you include the cost of merchandise, sales, and shipping in your gross sales figure, you are actually paying out more than you took in. Why? Because the difference between revenue and cost is what causes a profit.
So what is high ticket sales anyway? On the list of reasons that retail stores sell more of an item, probably the top three would include special events (especially on holidays), new product lines, and popular picks. New products are always hot sellers, as are popular picks. Retailers know that customers want to be able to find their favorite items quickly and they do their best to make those items available. But how do you find out what is popular? Is Dropshipping Dead in 2021? or the other way around?
High ticket sales figures can be a great indicator of what is selling well in your industry. Take a look at your sales figures and then look at what is popular with consumers. Then take a look at the top-selling items on the shopping sites in your industry and analyze the differences between them. You might find something that is surprising!
Take the guesswork out of what is high ticket sales and get straight to the facts with the sales report from a reliable source. Find out what is selling and who is buying. Then put all that information to work and predict what is going to happen next week!
Once you have figured out what is popular, start offering that product more and offering it cheaper. People will be happy to spend more for quality, but they will still be willing to spend some money if you are offering an item of good value at a discounted rate. This is where having an up-to-date inventory of your high-ticket items is so valuable. It will let you know what is hot and what is not. It will also help you to see what items are not selling very well and will allow you to lower prices on those items.
One thing you must keep in mind when what is high ticket sales is that you must stay on top of them. You can’t let people walk away with what they want and then come back and sell it to you at a higher price. You must monitor what is selling and figure out what is popular. Then, lower the price as low as you can and try to make up the difference by increasing the supply. Your customers will be happier and you will have a better chance of making more money.