The decrease in the average check is the reason for the explanation. Why is the size of the average check in stores decreasing. There can be several reasons for the drop in the average check.

The average check of Russians, which, according to the results of August, again decreased by 0.2%. At the same time, hypermarkets do not remain in the loser - only large stores were able to increase checks. The situation is a stalemate for petty trade, they say in the industry. Pressure from federal and regional chains is increasing, as is competition among convenience stores, so the segment is teetering on the brink of profitability.

The average spending of residents of the country per visit to the store has been declining for the fifth month in a row. According to the research holding "Romir", in August the index of the average check amounted to 495 rubles. - minus 1 rub. to July. Thus, the index has updated a two-year low.

"Compared to last year's value, the average check decreased even more noticeably - by 4.4%, dropping from 518 rubles in August 2017," Romir notes.

The dynamics in specific regions is different: residents of five federal districts began to spend more on going to the store, in three they reduced expenses. The buyers of the North Caucasian Federal District shrank most noticeably - minus 9.7% against the July check. The least amount of money spent on going to the store is spent in Siberia - 398 rubles, while the amount in August decreased by 2.7%.

Compared to last year, residents of “millionaires” do not increase their expenses (even Moscow went down by 0.7%), and in cities with a population of 500 thousand to 1 million people, spending per visit to the store fell compared to August 2017 by 2.5%.

Buyers began to leave more funds in hypermarkets - large stores where food and non-food products are sold. Mostly these are regional and federal networks. Hypermarkets became the only type of retail outlets that showed an increase in the average check - by 2.3%, to 758 rubles. But even they lost 7.8% compared to last year.

Discounters turned out to be the leaders in reducing the average check: spending in them decreased by 2.6% - to 331 rubles. Fall in annual terms - 9.3%. The average check decreased least of all in supermarkets - by 1.6% to 343 rubles.

The main reason for the decline in the average check, industry experts see the fall in household income. Rosstat will publish data for August 2018 on Wednesday; in July, real incomes fell by almost 5% over the month. At the same time, the level.

The size of the check decreased not by 0.2%, but by 1%, the head of the Association of Small and Micro-Enterprises in the Sphere of Trade of the Tyumen Region shared his estimates Vladimir Panov.

"There is nothing to be surprised. We are experiencing a drop in the standard of living of the population, therefore, we are seeing a drop in revenue. The second reason is the onset of federal retail. We are in the Tyumen region. We proposed to amend the law on trade in order to consider all federal chains as one subject of trade, "thus limiting the monopoly. But the decision of the Government of the Russian Federation came to reject the initiative. So far, no one has heard us, there is no progress," he said.

The expert adds that the reduction in the average check hits small retail outlets more, chains compensate for the decline due to turnover and the flow of customers.

According to Rosstat, the retail trade turnover in monetary terms in July grew by 3.3% MoM, since the beginning of the year - only by 2.5%. The share of retail markets and fairs, where products can be bought at the most affordable prices directly from manufacturers, accounted for only 5.8%. During the year, the number of official retail markets decreased by 71 units, while at the same time, in 34 subjects, the share of network trade structures in the total volume of retail trade turnover exceeded the average Russian level - 33%.

Statistics show an increase in the number of outlets, notes a member of the commission of the Civic Chamber of the Russian Federation for the development of the economy, entrepreneurship, services and the consumer market Andrey Usenko, the trend goes in parallel with the reduction in the cost of the average ticket.

"There was such a thing as "Kudrin's scissors" - when one curve goes up and the other goes down. I don't know whose scissors the situation in trade can be called, but we have a similar picture. Turnovers are growing, but also at the level of inflation. All this is quite alarming the situation from the point of view of small businesses, because the federal and regional networks have more resources to withstand the difficult situation.When the cost of doing business increases due to the increase in outlets, but profitability does not, this threatens regional trading companies, small shops. There is also a bubble in the large retail business: the endless increase in the number of outlets must at some point turn into quality. And here the question arises whether the chains will hold out until the moment when this happens, or will reconsider their strategy, "said the member OP.

At the same time, the expert confirmed that the decrease in the check was also felt in the Kirov region - Usenko is vice president of the Vyatka Chamber of Commerce and Industry.

The check will begin to grow only when the Russians feel the "paper" income growth. In the meantime, the threat of a decrease in trade turnover in the near future may result in increased tension in the labor market.

“You have to understand that a significant part of the population not only buys goods in stores, but also works in them. The complication of the situation in such a mass sector of the economy will undoubtedly affect the unemployment rate,” Andrei Usenko notes.

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The results of the first half of the year showed a downward trend in the average check in many grocery chains, including discounters. Experts believe that retailers have fallen into their own trap, becoming a victim of active promotions.

In the second quarter of this year, the average check of the market leader X5 Retail Group in the Pyaterochka chain decreased by 1.5% compared to the same period in 2017, to 344 rubles. Compared to the first quarter of 2018, there is also a drop of 0.7%, then the average bill was 361 rubles.

The average check in comparable Pyaterochka stores decreased by 0.8% in the second quarter of this year. If you look at the quarterly 2017 and 2018, then Pyaterochka has a trend towards a slowdown in the growth rate of net retail sales (taking into account the deduction of the return of goods, discounts and transportation costs, ed.). Growth was 31.9% in Q2 2017 and 21% in Q2 2018 (see infographic).

Analysts point out that in previous years, Pyaterochka showed high growth rates both in terms of revenue and traffic, so against the backdrop of a high base, it is difficult to continue to show significant growth, and even in a stagnating market.

In another X5 Retail Group network, Perekrestok, the average check in the second quarter amounted to 502 rubles against 513 rubles a year earlier (a drop of 2.3%). The average LFL check (check in comparable stores) also fell by 1.9%.

As for the third format of X5 Retail Group - the Karusel hypermarket chain, there, on the contrary, during this period the check grew by 3.3% and amounted to 762 rubles, the average LFL check grew by 2.5%.

The main competitor of X5 Magnit also saw a drop in the average check across all formats in the second quarter compared to the same period in 2017: in convenience stores it fell by 3.3%, in supermarkets by 3%, and in hypermarkets by 3%. 6.3%.

In the Lenta chain, the average check, taking into account new stores, decreased by 3.5% to 1,052 rubles.

For the O'Key group as a whole, the average LFL check in the second quarter decreased by 1.8% compared to the same period in 2017. In O'Key hypermarkets, the drop was 0.6%, and in Da! it remained at the same level as last year.

Marketing Wars

Public retailers attribute the drop in the average check to the low level of food inflation. In "Magnit" they also connected this with the fact that Easter this year fell on the period before the payment of salaries.

Alexey Korenev, an analyst at FINAM Group, believes that the main reason for the decline in both the average bill and the pace of retail sales in general is the continuing fall in real disposable incomes of the population for 4 years in a row. At the same time, the growth of nominal wages, which occasionally occurs, has little effect on the overall dynamics of income. Moreover, the trends recent months they say that, most likely, next year in this regard will be even worse than 2017 and 2018.

Retail market expert Natalia Kolupaeva (she has worked as an investment analyst in various banks for over 14 years, analyzes the consumer market and retail) believes that the average check is declining due to the growing level of competition between networks, and price-sensitive consumers continue to optimize expenses - they try to look for the best prices, save money, seek a compromise. People with free funds have the opportunity to eat out - in cafes and restaurants, use the increasingly popular food delivery from cafes and restaurants such as Yandex.Food and Delivery Club.

The fall in the average check on the market as a whole has nothing to do with the fall in purchasing power. This is largely a consequence of the aggressive marketing game that retailers have unleashed on the market.

But the main reason for the decline in the average check in all grocery stores is most likely caused by deep and wide promotions that retailers have become overused.

“The fall in the average check on the market as a whole has nothing to do with the fall in purchasing power. This is largely a consequence of the aggressive marketing game that retailers have unleashed on the market. Now the consumer in conditions of lean consumption migrates from store to store in order to buy goods at a discount. The number of trips to stores has increased, so some chains show an increase in traffic,” says Ivan Fedyakov, General Director of InfoLine news agency.

Experts point out that until the end of the second quarter, there was a continuous increase in promotions in FMCG chains, the number of which reached an abnormal state. “Already in some networks, the average basket bought in the store consisted of half of promotional items. They are needed to generate traffic, the consumer saves on one product, but buys more goods at regular prices, however, when you have the same discounts on all discounts and competitors have the same discounts, this does not lead to an increase in the average bill,” notes Ivan Fedyakov.

According to Sberbank CIB, the trend that began in 2015 - consumer shopping trips in search of the best price - continues to this day. “There is still a hunt for promo, but the consumer has begun to make higher demands on the place of purchase,” says Mikhail Krasnoperov, Executive Director of Sberbank CIB.

Buyers migrate from one store to another in search of goods on promotions: in one they take eggs at a discount, in another - flour, and powders, which are always discounted, have generally ceased to be bought at a regular price, experts say.

If in 2017 59% of the volume of all categories in physical terms was purchased in modern format stores through promotions, now this figure has increased to 64%.

According to Nielsen Promo Pressure, the share of sales from the top 20 FMCG promotions in the first half of 2018 increased significantly compared to the same period last year. If in 2017 59% of the volume of all categories in physical terms was purchased in modern format stores through promotions, now this figure has increased to 64%.

The most promoted categories remain washing powders and fabric softeners, the share of sales of which by shares is 83% and 82%, respectively. This is followed by chocolate bars (79%), rum and shower gels (69% each). Among all categories, sales at discounts increase most actively in such categories as baby food (the share of sales through promotions is 44% in real terms), coffee (69%), liquors (46%) - an increase in the share of promotions by 11% over the same period a year earlier, according to a Nielsen report.

Specialized networks pull flows

Specialized chains such as Krasnoe i Beloe, VkusVill, FixPrice began to compete with FMCG retailers. “Such players increase their area by 45% and revenue by 50% per year. Krasnoye i Beloe competes with Magnit and Pyaterochka in 50% of locations,” Mikhail Krasnoperov notes.

Ivan Fedyakov agrees with him on this. “If you take second and third tier chains, there are interesting growing stories that are largely based on an effective business model. Firstly, this is the Krasnoe and Beloe chain, which in 2017 grew by 50% in rubles and has already opened 1.2 thousand stores since the beginning of this year, and, by the way, in terms of the number of stores opened this year, the alcohol chain overtakes and X5, and "Magnet", - emphasizes Ivan Fedyakov.

The expert also draws attention to the good pace of development of the VkusVill chain (trades in natural and eco-products). The company had a 54% growth in revenue last year, opened 180 stores since the beginning of this year and now has 660 stores.

Among the dynamically developing players, Ivan Fedyakov draws attention to the Yarche! (area - from 500 to 1.5 thousand m 2). It is relatively recently (since 2012) being developed by the Tomsk food holding KDV Group, but by the end of 2017, the chain’s revenue amounted to 36 billion rubles (an increase of more than 100% compared to 2016), and the number of stores increased to 550. These are universal stores that offer the entire range of products, but the company relies on vertical integration and its own brands.

“Strategy of the chain “Brighter!” similar to the strategy of Magnit, it left the regions (Altai, Kemerovo, Novosibirsk) and goes to Moscow very carefully, trying not to compete head-on with federal networks. But gradually the network is already occupying a prominent position in vegetable gardens, moreover, in a stagnating market,” Ivan Fedyakov emphasizes.

When the buyer does not understand where he is - in Pyaterochka or Dixie, it is not surprising that the store's revenue begins to sag.

The Krasnoyarsk network of discounters "Svetofor" is actively developing, in which the bet is made on low margins and fast turnover of goods. Svetofor has federal contracts and well-organized own logistics. Over the past 1.5 years, the network has grown from 492 (as of January 2017) to 761 stores as of July 2018.

Experts note that consolidation in the grocery market continues, regional players continue to leave the market that has been stagnating for several years in physical terms, and now stagnation has begun in money terms due to low inflation. “Many companies are not ready for this, as they have never lived in such conditions. Stagnation is characterized by the fact that the strongest wins with a business model, on the one hand, understandable and effective, on the other hand, unique in relation to the consumer, who will be able to distinguish a particular store from the general gray mass. And when the buyer does not understand where he is - in Pyaterochka or Dixy, it is not surprising that the store's revenue begins to sag, ”says Ivan Fedyakov.

The valve must be closed

According to InfoLine, there are fewer openings in food retail than closings. In 2017, almost 8,000 stores were opened (Magnit and X5 Retail Group accounted for 60% of the openings) in the FMCG segment, and almost 15,000 were closed. But here it must be borne in mind that several small single outlets are closed for one open hypermarket, therefore, the sales area is practically not reduced. In the first half of 2017, the increase in retail space was 900 thousand m2 (among the top 200 FMCG), in the first half of 2018 - 674 thousand m2. There is growth, but the pace is slowing down.

Market experts believe that retailers have already fully felt the negative consequences of the abuse of promotions and must somehow get out of this price spiral.

“At least since the third quarter, we have seen that the depth and breadth of the assortment sold on promotions has ceased to grow, although until the end of the second quarter we saw a continuous increase in these indicators. Many vendors have built some promotional activity into their plan, so this process will continue for some time. But I would like to believe that we have reached the extreme phase of the development of these promotional activities, they cannot be developed further. Neither the supplier nor the retailer benefits from this: margins are shrinking, revenues are falling in comparable stores. The goods are beginning to be made from cheaper ingredients to reduce costs, quality suffers. Retailers should no longer unscrew this valve. In 2019, I think the trend towards a decrease in promotional activities will continue,” predicts Ivan Fedyakov.

The Russians began to spend less on food - the average check in the store reached a minimum in two years, in addition, the July figure fell by more than 3% compared to June, according to a study by the Romir holding. In Moscow, the average check amounted to almost 680 rubles, in St. Petersburg - about 640 rubles. The general decline in real incomes of the population played its role - Rosstat reported a drop in July by almost 5%.

As a result, Russians are more likely to make small purchases, says Andrei Karpov, chairman of the board of the Association of Retail Market Experts: “The consumer himself, simply speaking, saves and does not buy too much. At the same time, yes, he takes less, but he simply reduced the number of trips to hypermarkets, where he bought more, just began to go to the store more often. As part of one purchase, he takes only what he needs. In general, turnover has been declining in the last four years, Last year there is some slight dynamics in the region of 2% - these are extremely insignificant figures. All this suggests that the consumer has no extra money.

Over the past two years, consumer preferences have changed a lot: instead of large supermarkets, they choose small convenience stores, Andrey Vil, Deputy Director of Communications at Romir Holding, said. “People are leaving hypermarkets, supermarkets, large discounters for convenience stores, so-called traditional trade stores, they purchase goods at points where it was previously unavailable - for example, the assortment is constantly expanding at gas stations, the number of outlets in business centers is expanding, which offer not only coffee, he explains. “People are sort of diversifying their purchases right now.

If before they went to large stores, they bought, now they just shop in a lot more places.

All categories of citizens, both on the basis of age and gender, and on the basis of wealth, are subject to this trend - those who have less money can still buy on the go the goods that they bought earlier in the supermarket.

Large retail chains and hypermarkets attract customers with regular promotions: these are discount coupons and game formats, for example, collectible cards with the image of football players or sets of children's toys that are given for a certain amount in a check.

The share of goods with discounts is 20-25% of total sales. And it can hardly be said that buyers have turned away from retail chains and large supermarkets in favor of small stores, says Ivan Fedyakov, general director of the Infoline information and analytical agency: sales volume.

There is no question of any withdrawal from large retail chains of ordinary consumers.

On the contrary, the consumer has the opportunity to actively save thanks to promotions that are very active in most large federal chains and often cover the entire range of consumer goods and food products;

The reduction in the average check is only a seasonal phenomenon, while it is too early to talk about serious changes in the retail market, Alexander Myshinsky, General Director of the Real retail chain, is sure: “In the summer, there are much more small purchases - drinks, ice cream and something else. And secondly, every year there is a splitting of the total check for the day, that is, people begin to go not to one store, but to several, choosing goods according to promotions.

The only region where the reverse trend is observed is the North Caucasus federal district. There the average check grew by 15%.

Victoria Feofanova

Residents of Russia continue to save on daily purchases. For the second month in a row, the average check per trip to the store has been declining, and in May 2018 we are talking about a drop in the indicator by 1.7% compared to April.

“For the second month in a row, the average check has been declining. At the end of May, the indicator stopped at the level of 521 rubles, having lost 9 rubles or 1.7% compared to April. Taking into account the May inflation of 0.4%, the average check decreased by more than 2%, ”the materials of the Romir research center say.

According to the director of the Institute for Social Policy of the Higher School of Economics, Lilia Ovcharova, it is still difficult to draw conclusions about the decline in the well-being of citizens. The fact is that markets open at the end of spring and summer, some people move from one region to another, and some leave the country for a vacation.

“May-July are such volatile months when there are changes in consumer behavior,” the expert said.

According to Romir, five years ago, in May 2013, there was also a decrease. The average Russian city dweller spent 480 rubles for one trip to the store. Then the May index fell by as much as 7% compared to April.

True, the indicator of May 2018 showed that from the pre-crisis level of 2013, the check increased by 8.5%. Nevertheless, Ovcharova noted that today people behave very carefully in terms of consumer behavior.

The interlocutor of Gazeta.Ru added that not all incomes of the population are growing, for example, there is no increase in wages in the informal sector. “Property income is received by a relatively narrow circle of people. They do not affect the average check, ”the expert argues.

Recall that old-age pensions increased by 3.7% from January 1, and social pensions were indexed by 2.9% in April this year. According to Rosstat, the real disposable income of the population in 2018 continues to grow. The indicators increased by 3%, real wages - by 9.5%. In general, the indexation of pensions, salaries for state employees, the increase in minimum size wages.

Recall that the real incomes of Russians have been falling for the last 4 years. Last year - by 1.7%, despite the fact that the salary of Russians was growing. Nominal wages then increased by 7.2%, in real terms - by 3.4%.

According to Romir, the average bill has lost weight in all cities, and especially in Moscow and St. Petersburg. In both capitals, residents were saving hard enough. In Moscow, for a month the check decreased by 4.7% and amounted to 690 rubles. In St. Petersburg, we are talking about the "weight loss" of the check for the month by 4.3%. If we take the annual dynamics, then in Moscow the Russians began to spend a little more compared to May last year, by 1.9%. In the Northern capital, the check decreased by 5.9% over the year.

The monthly dynamics shows that the leader in reducing spending on goods is the Central District - 6.1%. Such indicators are mainly explained by the recession in Moscow.

“The check in the Urals has significantly decreased - by 3.6%. The check suffered more modest losses in the northwest (-1.6%) of the country and the Far East (-1.5%),” the study says. In the Volga Federal District, the check at the end of May amounted to 431 rubles.

Interestingly, in large cities people save more than in small towns. The average check per month in cities with a population of about 100 thousand people, the check fell by 1.5%, and in cities with a population of half a million - by 2.4%. “Residents of small and medium-sized cities did not save much. In “hundred-thousanders” a check added 3.9% over the year, in half-million - 3.8%, ”the materials say.

Also, the increase in gasoline prices could also affect the revision of spending on purchases. According to Rosstat, gasoline prices in May increased by 5.6% compared to April. For the year, the growth was 11.3%.

Hypermarkets suffer losses

According to Ovcharova, the check is also reduced by the fact that many retail chains have activated various discounts. “Now in our country, sellers are overrepresented, and they compete with each other by setting lower prices,” the expert said.

According to Romir, the check fell on purchases in supermarkets and hypermarkets. In May, we are talking about almost 5.5% losses compared to April. The decrease in the check in hypermarkets by May last year amounted to 5.9%. A recent study by the VTsOM says that the majority of Russians still prefer to buy products in large stores of well-known retail chains.

“Chain stores remain the most common place to purchase products: 72% of respondents noted that most of the food is bought there,” said the head of the center’s social policy and communication technology practice. According to the data, just in Moscow and St. Petersburg, the share of respondents who prefer stores of famous brands reaches 83-84%.

A study by Romir says that at the points of sale "trading" through the counter, the check added 11.6% in a year. Non-chain retailers can offer products healthy eating or farm produce. “This format is in demand among buyers who evaluate the quality, taste characteristics and appearance goods, and pay less attention to its final cost,” comments Dina Postolenko, director of the retail real estate department at Colliers International.

Sales Generator

Reading time: 10 minutes

Often the following situation arises: at first glance, everything is done with high quality, advertising is developed and launched, but the target audience, that is, the people to whom the product is oriented, are in no hurry to buy it. Many business owners in this case are perplexed why sales fell and where they made a mistake, overlooked something or did not finish something.

Even if your business is organized in principle correctly, there can be at least four reasons for the decline in sales. If you know why sales have fallen, you can analyze the situation and quickly eliminate the shortcomings.

From this article you will learn:

1. 4 main reasons why sales are falling
2. 9 Reasons for Decline in Online Store Sales

4 main reasons why sales fell

Reason 1. Incorrectly chosen sales strategy and tactics

So, consider the first reason for the drop in sales. It should be noted that it is one of the most common and obvious. An enterprise or outlet has already identified a portrait of a potential client, formed a target audience, analyzed the state of the market and understood exactly who their product or service is aimed at. But still no sales. Accordingly, profits too.

First you need to analyze the chosen strategy and sales tactics in order to understand why sales fell. It is likely that they are simply not suitable for the selected market segment, or that the strategy and tactics are very complex. As a rule, to improve the situation, it is enough just to objectively look at what you are doing, from the position of an outside observer. Then you will understand why sales have fallen, and you will find a way out.

Reason 2. Ill-conceived pricing policy

According to some marketers, the main parameter for the consumer when buying is the cost. But this point of view is wrong. Of course, the price is important, and the buyer always pays attention to it. However, he mainly thinks about what benefits the purchase of the product will bring to him and what problems he can solve with it.

An example is a situation when a person enters a store with an assortment of over 200 phones. But it doesn't matter to him. A potential buyer is busy looking for a model that fully meets his requirements. A professional seller will build a dialogue with the client in such a way that he will sell the phone. He will demonstrate the models chosen by the buyer from the favorable side, talk about the advantages of the company and let him know that the purchase should be made here. If your staff is customer-oriented and always highlights the quality of the product from the perspective of the buyer, then your sales will not decrease. Think about it now as you analyze why sales fell.

Reason 3: Unclear warranty terms

When a person makes a purchase, he must understand that the product that did not suit him can be easily returned. The order of the return procedure itself is important here - the simpler it is, the more the buyer trusts you. Nobody wants to deal with paperwork to get their money.

In accordance with Russian consumer protection law, the goods must be returned within two weeks. As a rule, 14 days is enough for a person to understand whether he likes a thing or not. Whatever happens, if the buyer wants to return the product, he will bring it to the seller one way or another. The law will agree with this provision, since the client is always right.

In this regard, thinking about why sales have fallen, you should pay attention to this parameter as well - perhaps you are providing customers with unclear warranty conditions. Adjust them to make them more understandable and transparent. Your target audience should understand that it will be possible to return the product in which case it will be possible without problems. She will regard this item as your significant advantage.

Remember that in the work of any outlet, returns are inevitable. If you make sure that they are good for your reputation, then you will not think about why sales have fallen.

Submit your application

Reason 4. Wrong time, wrong place

Why did sales drop? It can be quite difficult to answer this question, and often the problem lies not in you as a bad seller, but simply in the unfortunate location of the outlet. So, if you understand why sales fell, and found out that this happened for the reason indicated above, then what should you do?

Of course, changing the location is much more difficult than eliminating another cause. However, this factor greatly affects the business, and therefore if your sales have really fallen and the store is located unsuccessfully, it is still better to choose a more passable place.

Also, the product can outperform itself - another reason why sales have fallen. That is, the audience is not yet ready to perceive and use your product. Here it is appropriate to give an example of the largest company Apple, whose products for many years simply were not in demand - consumers were not ready to accept innovative solutions and advanced technologies. It often takes time before the product enters into the habitual use of the user and becomes clear to him. Alas, it is very difficult to correct the situation.

So, we looked at 4 factors that can cause sales to fall. Note that we have only focused on the main and most common reasons for the decline in consumer demand. In reality, there may be many more, and this should be taken into account. But if you are aware of the mistakes that entrepreneurs often make, then you as a businessman can learn from them and avoid such mistakes in your practice.

Managerial Mistakes That Reduce Sales

Mistake 1. Untimely purchase offer

So, why did your sales drop in your case? Often, managers make the mistake of continuing to persuade the client to purchase the product, while he is already ready to do it. The offer to buy is a whole art, and here you should remember certain nuances and subtleties. The procedure can be compared to fishing, when your active action must be completed exactly on time and not a second earlier or later.

If your company has a competent and professional sales manager, then most likely he knows exactly how to offer a product or service to a client.

Mistake 2. Talking to the buyer not about the benefits for him, but highlighting the advantages of your company

You take pride in your company and the products and services you offer. Of course, any sales manager must love and believe in what he is promoting. In this pledge successful sales. But the client's psychology is such that in the acquisition process he is only interested in his own benefit. Not your product or service, but the benefits and benefits that he will receive after the purchase.

In this regard, when negotiating, a professional manager should highlight the value of a product or service for a potential buyer. This approach will allow you to further increase the implementation. And now it is possible that your sales have fallen precisely because of the illiterate actions of the staff.

Mistake 3. Feel free to touch on the topic of cost

Often, managers are embarrassed or afraid to voice the cost to the client. Especially if they themselves consider it overpriced and know that competitors offer lower prices. Managers are afraid to hear from a potential buyer that he is not ready to purchase a product because of its high cost. It is the doubts of the seller that can be the reason that sales have fallen. The client feels that the specialist is not sure what he is saying, and this causes doubts in him at the decision-making stage. “Am I doing everything right? Perhaps I was given little time to think? Perhaps you should ask for a discount?

How can a manager deal with fear and embarrassment to discuss the price? There are two ways:

• practice talking confidently about the price;
• practice responses to the “expensive” objection and do so until they become automatic.

Mistake 4. Use complex phrases and terms in a conversation with a client

Often, sales managers, especially inexperienced ones, use abstruse phrases and specific terms, long and difficult sentences in their conversation. What does this lead to? A potential client gets tired of perceiving such information, stops delving into what the manager says, and the deal falls through. It is possible that your sales have fallen precisely for this reason.

Why do managers of many companies express themselves in this way? To demonstrate to the client your professional level and savvy in the subject. But what is more important - to show a potential client that you are competent and well versed in the issue, or to sell a product or service? If it is in your interest to sell products, speak in such a way that the person understands exactly what you mean. So you will significantly increase the likelihood of a successful transaction, and you do not have to analyze why sales have fallen.

Mistake 5. Arguing with a client

Disputes on any occasion are a hallmark of our mentality. Why, under no circumstances, should you enter into a dispute with a client? Everything is very simple - in this case, a person simply will not make a purchase.

Even if the client is obviously wrong, don't argue with him, unless, of course, you are interested in selling a product or service. Buyers are often wrong. But it is you who knows the properties and characteristics of your product very well, and not the client who has barely got acquainted with the product. When you express your point of view, then, of course, you are pursuing noble goals - to prove to the buyer that the product is really of high quality, and to sell it. But voice your opinion should be careful not to provoke a conflict. If you argue with many buyers, then this may be the reason why sales in your company have fallen.

Why sales fell during the crisis, and what it can lead to

The strength of any business due to the economic crisis can be significantly shaken. One of the most vulnerable forms of entrepreneurship is mediation, including in trade. Wholesale companies constantly balance between the requirements of manufacturers and the demands of buyers, and the slightest deterioration in the market situation can lead to the failure of the entire system and serious financial difficulties for the company. That is, another reason why sales have fallen may be the onset of the financial crisis.

Here is the order in which the difficulties appear in the channels of movement of goods and how the participants who are connected with each other in trade relations - retail stores and wholesalers - react to them:

Decreasing consumer demand

So your sales are down. With problems in the economy, demand among buyers falls - in the country and at the global level. This happens because organizations are cutting jobs, delaying wages and having difficulty obtaining and paying loans. That is, everything is interconnected.

The retailer receives less money from the sale of products in stores

This is immediately reflected in costly retail entrepreneurial activity. When there is less working capital, it is more difficult for a retailer to take and repay bank loans, pay wages to subordinates, pay rent for retail premises and conduct advertising campaigns.

In such situations, store owners reduce retail prices and increase advertising activity. Retailers transfer the costs of these events to wholesalers - the retailer requires the wholesaler to further reduce prices and extend the loan period.

Of course, threats to change the wholesale supplier and demand the delivery of products on the terms of sale are extreme measures. But they cannot be ruled out. In this case, the reaction is determined by the financial condition of the company and its position in the market.

Among other things, a retailer whose sales have fallen begins to get rid of some of the products with the least liquidity. Because of this, the wholesaler cannot offer the entire range of goods to the final buyer.

If the country is in an economic crisis and sales have fallen, especially if the outlook is unfavorable, the retailer chooses a liquid product at the expense of the markup. This causes a change in the assortment in retail outlets - cheaper products prevail on the shelves.

Often, retailers also tighten the requirements for the costs of wholesalers to promote their products in retail chains. Such retail protection measures are fully justified.

Difficulties affect wholesale

If in wholesale trade sales have fallen, the return of receivables to suppliers is becoming more complicated. Besides, commodity stocks at the enterprise accumulate also in connection with reduction of retail orders. As a result, the turnover of receivables and stocks of goods decreases. This, in turn, leads to a deterioration in the financial performance of the company.

As the firm is forced to lower wholesale rates to maintain sales volume, give customers additional discounts, and increase promotional spending, its profits are drastically reduced. A company that has lost sales finds itself in unfavorable financial conditions, in which it becomes more difficult for it to take and repay loans, and there is a cash gap.

The wholesaler begins to experience a deficit in finance, and therefore cannot effectively and quickly adapt to the changing crisis conditions of the market, maintain product range, which is in demand among buyers, and fulfill obligations to partners. Consequently, the profitability of the business decreases and financial problems become more.

9 reasons why sales in the online store fell

So, you wondered why sales in the online store fell. This is where you need to look at the latest research and analysis to determine why your store is not growing in deals and there is no demand from customers. And immediately, we note that it is quite difficult to maintain a leading position in the online trading market.

For three years, Qubit has been collecting customer feedback and complaints from 400 sites. As a result, it was possible to identify 10 main reasons why sales from online stores are falling, as well as to form a portrait of the buyer and his expectations, which often do not correspond to reality.

Below are the top 10 customer complaints about online shopping, according to Qubit research.

1. Price.

It is possible that your sales have fallen due to inflated prices. As a rule, customers most often complain about them. The results of the study show that the two most common complaints among buyers are “too expensive for the product presented” and “too expensive for me”.

Based on Nomis Solutions, shoppers are 7.4 times more sensitive to online prices than in-store prices. Therefore, you should take care of the competitiveness of your prices in relation to other companies in the market. In addition, it is important to have a unique selling proposition. You need to have something that other businesses don't have.

1. Assortment range.

Today a large number of people prefer online shopping, and there are a number of reasons for this. One of them is a wide range of products and the ability to choose what you like. Customers shopping online want to make finding a product easier than in stores. That is, even at the initial stage of site development, you should take care of a clear user interface of the store and provide users with a convenient and quick search for the desired positions.

According to the researchers, the product portfolio needs to be improved by investing in resources such as a recommendation engine, lists of new and seasonal products, and “related products” grouping.

When analyzing why sales have fallen, be sure to pay attention to this indicator and correct the situation if necessary.

1. The size.

If your online store doesn't have helpful and accurate size charts, then that could be another reason why you're losing sales. However, their presence greatly helps the buyer to navigate and choose the right product. As the owner of an online store, this saves you from the problems associated with returning products, issuing money to customers and from negative emotions on their part.

1. Waiting period.

When thinking about why sales in your online store have fallen, pay attention to this parameter. The average shopper is impatient and aggressive. He wants the site to load as soon as possible. Complaints about long loading times are very common these days. This indicator is really important, and its value will only grow in the future. That is why you should definitely take care of the sufficient speed of loading an Internet resource.

1. Search on the site for the necessary information.

Buyers are very angry if the search engine on the site does not work at the level of Google. In order not to annoy customers, improve and develop the tagging system on your site, add advanced search options.

1. Availability of products.

Users often complain that the site does not have the products they need. Despite the fact that such complaints have decreased since the last study, this factor can also contribute to a drop in sales in the online store. First of all, customers are dissatisfied with the fact that the desired products are not on the site or they have already ceased to be produced, but they are still presented in the assortment. Often, customers expect that online stores will have a large selection and a wide range of products. If this is not the case for you, then it is likely that sales have fallen in connection with this.

1. Navigation.

When analyzing why sales have fallen, evaluate the structure of the site. Look at navigation objectively. It is possible that it is difficult for customers to navigate and find the necessary goods. Make sure that information about popular products and sales is clearly visible to users, and the site interface is clear and simple, which makes it easy to navigate through sections.

1. Discounts and sales.

Customers are often dissatisfied with the fact that it is difficult to find windows for entering a discount code on the site. If you are running a promotion, discount on coupons or codes, make sure that a person can quickly navigate and understand what's what. If customers have difficulty using your online resource, sales will drop.

It should be noted that a number of online stores now set temporary restrictions on the purchase of certain goods, due to which the sensitivity of customers to prices is reduced.

1. Images.

Your online store should look aesthetically pleasing. If you are analyzing why sales have fallen, then it is possible that your site is not attractive enough. The results of eye-tracking studies indicate that visitors first visually perceive the page, examine it, and only then read the text. In other words, beautiful and high-quality images on the site are very important.

The data obtained in the course of the study indicates that before buying, the client seeks to view as many photos and images of the product as possible. In addition, he is more interested in seeing how clothes look on models. The more high-quality pictures and video content you add to the site, the more you stimulate the client to buy.

How to find out why sales fell: analysis and control

In accordance with the formula of Ron Hubbard, who developed one of the most successful management technologies, control always equals income. When you begin to control and carefully analyze this or that process, you influence the situation, saving your strength, money and increasing efficiency. The sales process also needs control and analysis.

In order not to wonder why sales fell, constantly monitor:

• how many potential customers contacted you - the number of people who entered the trading floor, the number of phone calls or visits to the official Internet resource;
• how many deals were closed and checks were broken, the number of real customers, that is, those who made a purchase. This indicator is necessary to calculate the conversion and evaluate the professionalism of sellers;
• in what volume the average deal was made or the average check was issued. To obtain this value, the total daily sales volume is divided by the number of transactions and broken checks;
• seller conversion rate. The parameter indicates professional level your employees, their knowledge and ability to use the technology of transactions.

If you analyze why sales have fallen, then first of all, evaluate the degree of control over this process. If you do not effectively monitor and control the implementation, then you cannot influence the indicators. Only a tenth of the clients tell the higher management about conflicts and disputes that have arisen, allowing the leading manager of the company to eliminate the shortcomings. The rest of the dissatisfied buyers simply refuse to continue to cooperate with the company.

So how do you control salespeople? First, look at how they communicate with customers. Often, companies, analyzing why sales have fallen, reveal that sellers are primarily to blame. Perhaps they are discourteous with customers, ignore their requests, or are too intrusive. Do not forget that if you do not control discipline, then after some time you will see that you have missed profits due to declining performance. The sales process is managed using two tools - motivation and control.

The most effective means of supervision, according to many managers, is the installation of a video surveillance camera with a microphone in the trading floor or in another area where sellers work. The presence of video cameras allows the manager to monitor the work of salespeople online, assess the situation in the hall and, in general, determine why sales have fallen.

There is nothing surprising in the control of subordinates today, and this method is successfully used by many modern enterprises. That is why, if you want to find out why sales have fallen, it is definitely worth installing video cameras and figuring out what is wrong. If you, as a business owner, realize that sales have fallen due to the fault of employees, you can impose disciplinary sanctions on them or simply fire them, taking others in their place.

The next stage of control is the introduction of daily reporting for sales managers. That is, the duties of employees will include the daily filling out of special forms, which will display information about the volume of products or services sold, the number of calls made or presentations made, and plans for further activities or some other important data for your company will be entered there. . All this information will later be useful to you to evaluate the results of both a particular employee and the entire department.

Another effective method to understand why sales have fallen is to visit the company under the guise of a “mystery shopper”. Thanks to this technique, you will be able to evaluate how the enterprise works from the outside, putting yourself in the place of the client, and find out why your sales have declined.

First, a legend is prepared and coordinated with the management of the enterprise, and then they pay a visit to the company under the guise of a “mystery shopper”. This allows you to understand whether the service is of high quality, whether the employees are qualified, and also to feel the atmosphere of the trading floor through the eyes of the buyer. Checking competing firms will help you learn their advantages. Using this information, you will attract new buyers who chose other companies yesterday, and understand why sales in your company have fallen.

How to increase sales after a fall

So, you figured out why sales fell. Now your main task is to improve performance. That is, existing customers should consume more of your products or use your services more often. In addition, it is worth working on attracting new customers.

Attracting new customers

In this case, you can lure customers from competitors or develop new market segments. Both in the first and in the second case, certain marketing tricks should be used. The table indicates the tools for implementing each of the above methods. However, some of them are universal.

Looting customers from competitors	Entering new segments
Accompany your potential customer on the way to the store. This method is especially effective if you are in mall. In this case, the consumer who went to your competitor will be interested in your product, because he needs a product, and not a specific company. But be careful, excessive advertising can scare the client and cause irritation.
Use discounts, bonuses and gifts. Passing by your point of sale, the consumer will see a tempting offer. Even if he first passes by, then, not seeing the benefits of his "pet", most likely, he will return to you. But this technique will only lead to a short-term increase in sales.
Show that your product is better. This can only be done by improving the quality of products and improving service.	Cross events. Agree on a joint promotion with any enterprise. This can be an event (for example, a product tasting in a supermarket), a gift for a purchase from a partner (remember the joint action of the Perekrestok supermarket and the Sunlight jewelry store). The main thing is that the target audience coincides with you and your partner.

Increasing sales with existing customers

There are also two implementation options here - work on increasing consumption and increasing sales conversion.

Increasing sales conversion

1. Improve the quality of service. The store must have high-quality service so that customers return to it again and again. A good seller will sell anything. A bad seller will not be able to sell anything. There is intra-company marketing - the attitude of the enterprise to its staff. If you create favorable working conditions for your subordinates, then, accordingly, you get more income and do not wonder why sales have fallen. Do not forget about such components as training and motivation.
2. Pay attention to merchandising. Your sales and profits directly depend on how the goods are laid out on the shelves. There is an arm's length rule in marketing. Perhaps your sales have dropped because you are not following it. In accordance with this rule, the buyer in 80% of cases takes a product that is easy for him to reach. If the item is located above or below this level, the sales volume will be insufficient.
3. Carrying out sales, promotions, issuing bonuses. But remember that thanks to such events, you will increase the conversion, but only for the period of their action.

Increasing consumption

Everything here should be aimed at increasing the average check. In this case, sellers:

1. Raise the cost. By raising the price of goods, you increase the size of the average check. But the conversion may decrease. Accordingly, your sales and profits will not increase. To avoid such a situation, keep in mind that the slightest change in prices must be justified. That is, it should be clear to the buyer that you increased the cost not because you wanted to, but because you changed the packaging to a more convenient one.
2. Offer additional or related products or services. After your customer has decided on the product, you can draw his attention to related products. Let's say you sold a bracelet. In this case, it is appropriate to offer a beautiful gift box. The client will not spend a lot of money on such a purchase, but the total check will become larger, which, of course, is only to your advantage.
3. Conduct loyalty programs. Thanks to the loyalty card, the size of the average check will not increase, but the number of purchases made by a person in your store will increase. There are several types of discount cards - bonus, accumulative, privileged. Each has its own purpose, but all of them are primarily aimed at increasing sales.

What is the principle of the loyalty program? Suppose you are the owner of a grocery store. If a person makes a purchase in the amount of 1000 rubles or more, you give him a loyalty card. There is a similar outlet near your store that does not have its own loyalty program.

Where will there be more customers? Of course you have. People who have your loyalty card will regularly visit the store in order to receive bonuses, discounts or gifts - everything is determined by the type of card. That is, with the help of such programs, you tie customers to you, and they willingly come back. Accordingly, your sales and income grow.