Wednesday, December 12, 2007

Sales growth

How do you grow sales? It's like sowing and reaping for a farmer - you have to keep distributing seed in order to expect a harvest later. So we've issued 32 press releases this year (http://www.saelig.com/press_releases.htm), highlighting new products we've found. I spend a lot of time looking for useful components and products that our target customer could find useful, priced at the lowest prices we can.

I hope you like the products we find for you! You've helped us grow by about 10% in sales volume this year - thank you!

Monday, December 3, 2007

Time Value

It's tricky to know the value of advertising - SOOOO expensive, yet it's free if sales profits cover the expense.

A concept often overlooked is the so-called Time Value of a Customer: this is an approximate average of how much a new customer will spend with your company over the next few year's. Divide total sales in, say, the last five years, by the number of customers you have and calculate the average customer sale. Let's say you have 1000 customers and $1M in sales - then a rough back-of-the-envelope calculation is that each customer is worth $1000 in sales. So it's worth spending $1000 x P (where P is your overall profit margin) to get a new customer. We ask customers where they saw our ads to track which ads are working and which aren't. Why not tell us where you saw our ads? Please email marketingATsaelig.com - thanks! We'll send you a gift in return!

In our case, however, it's not all about sales - it's also very much about getting our customers the best products that will help their work go easier - "happy, prosperous and blessed"!