Our profits went up by 60 percent by a mere increase in order value of 10 percent. Here’s how we did it.
Say your average order value is $100 and after all the expenses and cost of goods sold, you get a net profit of $5.
Now say you were able to increase it by another 10 percent.
That is $110. And say your gross profit for that is 30 percent.
That means when you increase for $10 you get $3 in profit.
Your cost almost remains the same. So that means at the end you get 5 + 3. That is $8 in net profit.
That means a 60 percentage increase in your net profit. And This is why the average order value. You have to be obsessed about it and your profits will zoom up