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Why the Math Matters!

Dear Friend,

I just got back this week from the cart and kiosk convention that was held in San Jose, California.

One of the vendors I met told me about how he and his wife did over $350K in sales off of a single cart last Xmas!

That caught my attention. As did what he told me next. Another distributor selling the exact same product, did only $60K in sales in his mall cart... in a very similar mall.

What was the difference?

Well... not the product. It was exactly the same.

And not the malls. According to the vendor, they were virtually the same.

What this vendor did describe was a series of LITTLE things that he and his wife did different. These were little things that by themselves didn't seem like they would result in such a big difference in sales

But when the sum total of all these little things were added together, they resulted in a HUGE difference in sales.

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How can a series of little things done differently have such a major impact on the sales at your cart or kiosk?To understand the potential impact, you have to understand the MATH involved.

Let's say for example that you make a small improvement on your cart. You offer a better package deal to your customers. As a result, your sales increase by 10% .

Ok. So your sales are up to 110%. So far, so good. You're not setting the world on fire. But sales are moving in the right direction.

Now, let's suppose you make another small adjustment. You offer a more appealing add-on deal. And your sales go up another 10%.

Here's where things start to get interesting.

You made two adjustments that each independently increased your sales by 10%. Now you're up to 120% of your original sales, right?

Not exactly. With the 2nd adjustment, your sales would go up 10%... of 110%. Or up to 121%. Ok... 120% vs 121%... what's the big deal? As you'll see, this lowly 1% can make a HUGE impact on your sales if you keep making improvements.

It's because of the multiplier effect that comes into play when you make multiple improvements on your cart or kiosk.

Let's continue with our example.

Suppose you now make another adjustment. You give your salespeople a better incentive to sell. Sales go up another 10%. The cumulative effect of those increases might initially seem like they'd cause your sales to go up to 130%.

But with the multiplier effect, your sales are up 133%.

Make another small adjustment that results in a 10% increase in sales, and your sales are now up 146%. It gets better as you keep making improvements.

With ... the 5th 10% increase - sales increase to 161%
  ... the 6th 10% increase - sales increase to 177%
  ... the 7th 10% increase - sales increase to 194%
  ... the 8th 10% increase - sales increase to 214%




By the eighth adjustment, anything you do that increases sales 10% now actually increases your sales 20% of your original sales.

You essentially get 'double' the impact of any improvement you make due to the multiplier effect. It just keeps getting better from here on in.

With ... the 8th 10% increase - sales increase to: 235%
  ... the 9th 10% increase - sales increase to: 259%
  ... the 10th 10% increase - sales increase to: 285%
  ... the 11th 10% increase - sales increase to: 314%




Notice that after only FOUR more small improvements here, you've added another 100% in your sales.

Hopefully you get the idea. I mean, we could keep going with this. By the sixteenth improvement, each 'tiny' increase of 10%, boosts your sales a whopping 50%+ at a pop!

If you understand this concept, you can understand why one cart can do $350K in a Xmas season, while another in a very similar mall might do only $60K.

And you can also understand why one cart, selling the same product, in the same mall, can do five times the sales of one in the previous year. Or one fifth of the sales.

It's really up to you.

Here's the key point:

Continually focus on making improvements at your cart or kiosk, even if the improvements appear to have only a small impact at first.

Continue to make these improvements, so that as the multiplier effect kicks in, you are able to experience the huge overall increases in sales that are almost ALWAYS possible.

Brady Flower



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