EP172: How to Increase Your Average Order Value and Boost Revenue in Your Creative Business

In this week's regular season episode we're covering the powerful impact that increasing Average Order Value (AOV) can have on your bottom line with 15 ideas for you to try in your creative business.

I share my own experiences as an illustrator who significantly increased my AOV and sales by learning to bundle items and offer bulk discounts - among other tactics . You’ll learn how this simple shift can transform your business, no matter what you sell or what creative services you offer. It also happens to be kinda fun!

This is a great episode for creatives who...

• are looking for strategies to increase their AOV online and and in person
• are struggling to draw new customers but need to boost revenue

This episode is brought to you by our Premium Subscriber Community on Patreon and Buzzsprout

For a summary of this episode and all the links mentioned please visit:
Episode172: Increase Your Average Order Value and Boost Revenue In Your Creative Business

You can find Melissa at finelimedesigns.com, finelimeillustrations.com or on Instagram @finelimedesigns.

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And She Looked Up Creative Hour Podcast

Each week The And She Looked Up Podcast sits down with inspiring Canadian women who create for a living. We talk about their creative journeys and their best business tips, as well as the creative and business mindset issues all creative entrepreneurs struggle with. This podcast is for Canadian artists, makers and creators who want to find a way to make a living doing what they love.

Your host, Melissa Hartfiel (@finelimedesigns), left a 20 year career in corporate retail and has been happily self-employed as a working creative since 2010. She's a graphic designer, writer and illustrator as well as the co-founder of a multi-six figure a year business in the digital content space. She resides just outside of Vancouver, BC.

Episode Transcript

Speaker 1 (00:00):
This week's episode of the and she Looked Up podcast
is brought to you by ourpremium subscriber community on
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(00:21):
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(00:42):
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I can't tell you how much Iappreciate all our monthly
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They are the engine that keepsthe podcast running and they're
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(01:03):
And now let's get on with theshow.
Welcome to the Angie Looked UpPodcast.
Each week we sit down withinspiring Canadian women who
create for a living.

(01:24):
We talk about their creativejourneys and their best business
tips, as well as the creativeand business mindset issues all
creative entrepreneurs strugglewith.
I'm your host, melissaHartfield, and after leaving a
20-year career in corporateretail, I've been happily
self-employed for 12 years.
I'm a graphic designer, anillustrator and a
multi-six-figure-a-yearentrepreneur in the digital

(01:46):
content space.
This podcast is for the artists, the makers and the creatives
who want to find a way to make aliving doing what they love.
Hello everyone, and welcome toanother episode of the and she
Looked Up podcast.

(02:07):
As always, I am your host,melissa, and this week we are on
the second episode of seasonsix and, as I promised you
earlier I can't remember if Ipromised it in episode one of
the season or if it was in oneof the Prep for the holidays
episodes but today we're goingto be talking about a really

(02:27):
easy way to increase yourrevenue and your profits.
We're going to be talking aboutAOV, and if you're not familiar
with AOV, you've probably heardthe acronym.
But if you're not familiar withwhat it stands for, it stands
for average order value.
If you are from old schoolbricks and mortar retail, you

(02:48):
may be more familiar with theterm shopping basket, average
shopping basket amount.
So that's the term we used whenI worked in bricks and mortar
retail, but today the morecommon usage is AOV, or average
order value, to kind of reflectthat.
People are also shopping onlineas well as in person with an
actual shopping basket.

(03:09):
So that's what we're going tobe talking about today.
If you're watching on YouTube, Iam all bundled up.
Gone are my tank tops.
We went from like 30 degrees to18 degrees and it is very
chilly here on the West Coastand kind of wet and damp and
feels a bit like November, notreally September.

(03:30):
So, yes, I'm all bundled uptoday and we're going to be
diving into this topic.
I'm really looking forward toit because it's one of my
favorite things.
It was one of my favoritethings in retail to work on.
It's one of my favorite thingsnow as a small business owner to
work on, and it can have suchan impact on your bottom line.
And the cool part about it isthere's so many ways to increase

(03:53):
your average order value, likeit is really only limited by
your creativity.
And these are the businesstasks that I love the most, the
ones that where I get to combinemy creativity with my kind of
business nerdiness.
So I'm really looking forwardto talking about this today.
But before we dive into all ofthat.
I do just want to remind youthat we would love it if you

(04:17):
would leave a review for theshow wherever you are listening,
so you can now leave reviews onSpotify and Apple podcasts.
You can do it right in the app,so you know if you're enjoying
the show.
I would love it if you wouldleave a review.
It really helps us get found byothers Canadian creative women
and women who are running theirown artistic small businesses.

(04:39):
So I would really love it ifyou could do that.
If you're watching on YouTube,please give us a thumbs up or
subscribe or share with yourfriends.
Again, it helps us get in frontof people.
Leave a comment.
Youtube is the one place whereyou can easily leave a comment
about the episode.
So if you have comments orquestions, that is the place
where you can leave them and Iwill see them and I can easily

(05:02):
reply to you as well.
So that is one of the things Ido like about YouTube kind of
makes it worth having to show myface.
So that's one of the perks ofYouTube.
So, yes, we would love it ifyou could leave us some reviews
and help us get the word out.
We also have our Patreoncommunity, which we have both a

(05:23):
free community where I leavelinks to interesting articles or
pop in with other little topics.
But if you are a member of ourpaid Patreon community, you also
get access to an exclusivepodcast episode every month and
whenever you sign up to Patreon,you get access to the entire
backlist of those episodes.

(05:44):
Whenever you sign up to Patreon, you get access to the entire
backlist of those episodes.
And if you just want to sign upfor one month and it's a lot
less than the cost of a latte Ibought a latte last week and it
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It's only $4.50 to join Patreonfor the month and you can just
join for one month and listen toall the old episodes and then
unsubscribe and or downgrade toa free membership and be on your

(06:09):
merry way.
So this episode would not bepossible without our Patreon and
Buzzsprout subscribers.
So to all of them, thank you somuch.
That is why they sponsor theshow, because the show wouldn't
happen without our premiumsubscribers.
So thank you to all of you forhelping us out.
Okay, let's move on to AOV, oraverage order value.

(06:31):
So one of the reasons I loveAOV is because it's a very
simple way to increase yourrevenue and your profit without
actually having to increase thenumber of customers you have.
Finding customers is a toughgig.
It is really hard.
Social media used to make itquite easy, but we all know that

(06:54):
social media makes it verydifficult to get people to us.
These days it's hard to getseen on social media.
To get people to your ownwebsite, you have to be very
good at optimizing yourself forSEO search engine optimization.
It requires doing things likewriting blog posts and making
sure that you're using keywordscorrectly and that you have SEO

(07:18):
optimized product descriptionsand product titles all of those
things.
Etsy also works with SEO.
It's a different type of SEOthan you would find in the
search engines, but they stillhave their own SEO, and so it's
important that you're using theright titles and tags and that
you're getting the correctinformation in your product

(07:40):
descriptions, that you've gotyour shop information filled out
.
All of those are important forSEO and you need to do all of
those things to get seen.
And the thing with SEO is it'snever ending.
It's its own algorithms, justlike social media, and those
algorithms are also constantlychanging, so getting people to

(08:02):
us is an ongoing challenge, ofcourse, we've talked about in
previous episodes how to getfound by your ideal customers.
You can also use in-personmarketing.
You can use paid marketing,which is things like Facebook
ads or meta ads, tiktok, allthose types of things.
So, yes, there's lots of waysto get people to you, but

(08:27):
wouldn't it also be nice if youcould just make more money from
the people who already know andlove you?
Not to sound mercenary about it, but at the end of the day, we
all need to eat, right?
I don't believe in the myth ofthe starving artist and I try to
make sure that all of youunderstand that you don't need
to starve to be a successfulartist.
So in order to do that, we haveto make smart business

(08:50):
decisions so that we can pay ourbills, and increasing your
average order value is an easyway to do that.
So I'm not saying you shouldn'tbe paying attention to SEO and
driving traffic to your site.
Absolutely, you need to bedoing that.
What we need to be doing isemploying a number of these
different strategies and tacticsat the same time, but it can be

(09:13):
very hard to focus and go allin on them at the same time, so
sometimes we have to pick onethat we work on and then, once
we get that one up and running,we pick another one that we work
on, and then we pick a thirdone and then we go back to the
first one and we sort of rotatethrough them and make sure that
they're all serving us well.
So enough babbling about all ofthat.

(09:33):
Let's get into what we're hereto talk about today, which is
average order value.
So to give you an example ofhow powerful this can be and
we're going to use very, veryround numbers here, because math
and I'm doing this on the flyin my head but let's say that
you have, let's say, yesterdayyou sold a hundred dollars worth

(09:55):
of product on your website andyou had 10 customers over the
course of the day.
So to figure out your averageorder value, we take the total
number of sales divided by thetotal number of customers.
So 100 divided by 10 equals 10.
So your average order value was$10.
That doesn't mean everyonespent $10.
Some people might've spent 20.

(10:17):
Some people might've spent five, but over the course of the day
, the average order value was$10.
You're making about $10 persale on your website every time.
Again, it's the average number.
So if you are doing about $100 aday in one day over the course
of a 30-day month and for thisexample we're going to say that

(10:40):
all months in the year have 30days in them, but over the
course of a 30 day month you'remaking about $3,000 in sales.
Okay, because you're doing $100a day times 30 equals 3000.
So again, your average ordervalue for that $3,000 is $10 a

(11:02):
day.
That's your average order valueacross your website throughout
the year.
So over the course of a year,$3,000 is $10 a day.
That's your average order valueacross your website throughout
the year.
So over the course of a year,$3,000 a month times 12 months,
you made $36,000 in revenue,with an average order value
across that whole year of $10.
Now what if you could increaseyour average order value for the
year to $11?

(11:22):
So, by a dollar, your averageorder value goes up by a dollar
over the course of a year.
So now you're making.
You still got 10 customers aday, but instead of spending $10
, they're spending on average$11.
So now your daily sales arehitting the $110 mark instead of

(11:42):
the $100 mark.
So 110 times 30 means that youare making $3,300 a month
instead of 3,000.
So you haven't increased yournumber of customers, but you've
increased your average ordervalue and it is resulting in an
extra $300 a month.
In an extra $300 a month Overthe course of a year.

(12:11):
That is going to equal an extra300 times 12, $3,600.
So you're making an extra$3,600 a year and you haven't
increased the number ofcustomers that you have.
All you've done is increasedthe amount that each customer
spends in your shop.
So you've gone from $36,000 ayear to $39,600.

(12:32):
Is that right?
So you're almost at $40,000.
You've almost had a $4,000increase in sales without
increasing your traffic ornumber of customers.
So that's an easy way for us toincrease our revenue and our
profit.
So, but how do we do this?
And this is where the fun stuffstarts.

(12:53):
There's actually so manydifferent ways.
I don't even know if we can getto them all in this episode,
but I'm going to try.
We're going to talk about asmany as I can squeeze in to our
time here.
One of the easiest ways toincrease your average order
value is to offer bundles, andthis was a game changer for me.
This is where you bundle yourproducts together and sell them

(13:18):
as a package, and there's somany different ways that you can
do this, so one of the easiestways that I found in my business
.
So I am an illustrator and Imake stationary items based on
my illustration work, so one ofmy most popular items is
stickers, sticker sheets inparticular, and I have one

(13:38):
particular sticker sheet that isextremely popular and people
were it retails for $5.
And so when people buy it, theywere buying one sheet and
spending $5.
And I started to think like howcan I get them to buy more than
one sheet?
Because it's still like youhave to think of it this way

(14:00):
Packing up one sheet of stickersis a lot of work for $5.
Packing it, writing the thankyou card, putting it in the mail
, taking it out to have itshipped all that it's a lot of
work for $5.
So how can I get them to spendmore?
And so the very easy, obviousway was to create a bulk

(14:22):
discount.
So when they purchase one sheet, they pay $5 a sheet.
If they purchase three sheets,they get a bit of a discount.
If they purchase five sheets,they get an even bigger discount
, and it worked like a charm.
Almost nobody buys one sheet ofthat particular sticker sheet
anymore.
Most people buy three sheets orfive sheets, and my average

(14:45):
order value for that item hasgone from just over $5, because
I would occasionally havesomebody buy two sheets, but
most people bought one.
So my average order value forthat item went from just over $5
to now almost $13.
I don't have any more customersfor that to now almost $13.

(15:08):
I don't have any more customersfor that, but the people who
are buying it are buying moreand I'm making more money, and
so the average order that I'mpacking and shipping, instead of
being a $5 order, it is nowanywhere from a 13 to a 15 or
$16 order, so that's a hugeincrease in revenue without
increasing the number ofcustomers that I have.
So are there any items that yousell that you could do something

(15:30):
like that, where you arebundling them and offering them
a bit of a discount?
And the cool thing is like Idid the math, because I'm kind
of nerdy about this, but I didthe math to see, like, what kind
of discounts I could offerbased on how much they purchase,
and I worked it all out andeven giving them a discount with
five sheets, I'm actuallymaking more per sheet than I was

(15:52):
when I was selling one sheet at$5.
Because I am not having to packindividual orders, I'm saving
on the amount of packaging thatI'm using for the number of
items that I am making, and ittakes me less time to create
three sheets than it does Like.
It takes me the same amount oftime to create three sheets as

(16:15):
it does to create one sheet.
So, like when I factored in themaking and the packing and the
shipping time, I'm actuallymaking more money when they
purchase.
I'm making a greater profitmargin when they purchase five
sheets at a discount than whenthey purchase one sheet at full
price.
So do the math on these things.
I think you might be verypleasantly surprised.

(16:37):
So that's one way that you canbundle, and once I saw that that
worked so well, I started to dothe same thing for my other
stickers, and I'm still workingmy way through my whole sticker
catalog and implementing that onall of them, cause it's it's a
lot of work to do on Etsy andthen you have to do it again on
your Shopify site or whereverelse you sell, so it's a slow

(16:59):
process.
But now any new product that Ilaunch automatically has that
discount done.
So that's one way to do it.
You can also bundle differentproducts together.
So this is a great way,particularly for people who are
shopping for gifts.
So I used to work as acosmetician and you know, when

(17:21):
you go to the perfume counter orlike one of the makeup counters
just for Christmas, they alwayshave those box sets that are
only available at Christmas thegift sets, where you get like a
little bit of everything you get.
If you're buying perfume,you'll get the perfume, but
you'll also get like a lotionand a toilet water or like

(17:42):
different things, and it's at avery reduced price.
You get a really good deal onit and people buy those for
Christmas presents.
You can do something like that.
So you know, if you makejewelry let's say you make
earrings could you make anecklace that matches and box
them together as a gift set.
You could even add in abracelet and have a whole

(18:05):
matching trio and of course witheach one the price would go up
a little bit, but overall theymight get a discount for buying
three.
And here's just a little protip you don't even have to give
a discount when you bundlethings together.
Sometimes you can just take thestraight up retail for each
item, add it all together andsell it as is, because what

(18:26):
you're selling isn't.
What you're selling isconvenience.
You're making it easy for aperson to go.
That is a great gift idea, oroh, yes, I want those earrings,
but I also want to have amatching necklace and a matching
bracelet.
So how can you bundle itemstogether and sell them?
It is such an easy way toincrease your average order
value.

(18:47):
If you sell bath products, youknow, could you bundle.
You see this all the time.
You get like a bubble bath anda cleanser and a scrubby or
something they all come together.
If you sell candles, could yousell like a teaser set of

(19:08):
candles?
Like maybe, instead of sellingfull-size candles, you sell tea
lights or something that come inyour five most popular scents
and you put all of them togetherin one box and sell it as kind
of a sampler set so people cantry them.
You could also do this withlarge candles too, is have put
your three most popular scentstogether in one box and sell it

(19:29):
as a gift box.
Or come out with seasonalscents that you package together
in a bundle.
So for Christmas, maybe youhave like a candy cane scent, a
pine scent and a spiced scentand you bundle those together as
your Christmas scents and sellthem in a box, like, think about
how you can do that with whatit is that you sell.

(19:53):
What is it that you could puttogether, what is it that you
could sell multiples of, and boxthem up, sell them like that.
It's a really simple way to, um, increase your average order
value.
The next thing this is anotherone that probably almost all of
us are familiar with, and thatis the.

(20:13):
Would you like fries?
With that way of upselling.
So we are all familiar with thewhole, or at least if you're of
a certain age and you worked atMcDonald's, you or any fast
food outlet, there was alwaysthe.
Do you want fries with that?
Somebody orders a burger.
Do you want fries with that?
Somebody orders a burger.
Do you want fries with that?
Somebody orders a drink.
Do you want fries with that?
Or they order a burger andfries.

(20:34):
Do you want to drink with that?
Like it was always upsellingthem to increase the average
order value or the shoppingbasket.
Then the fast food places gotreally smart and they decided to
bundle things.
So now you get your extra valuemeals or, where they've already
bundled it for you, you getyour drink, your fries and your
burgers all together, and it'scheaper than buying them all

(20:55):
separately.
And you also get a bigger size.
Movie theaters are experts atthis.
You go to the theater and ifyou buy the small popcorn, it
costs you like $10, but if youbuy the medium popcorn, it costs
you $11.
So you get all this extrapopcorn for an extra dollar.
It's brilliant, right, and weall are suckers for it.

(21:17):
So how can you introduce upsellsand add-ons to this?
So there's a lot of differentways that you can do this and
you really have to think abouthow you can do it.
So let's say you make jewelry.
Would you be able to add on acustom engraving?
You know Apple does this allthe time.

(21:39):
You buy an iPad.
Do you want your name engravedon the back?
Could you do that with jewelry?
Do you want your name engravedon the inside of the ring, if
you're able to do that?
Or, as I mentioned, when theygo to checkout, they're buying
that pair of pearl earrings.
Is there something that can popup at checkout?
And this is hard to do on Etsy,but you can definitely do this

(22:03):
if you have your own website.
Almost all of them have anupsell plugin or an upsell tool
that lets you do this, so thatwhen they add pearl earrings to
their shopping cart, they areautomatically suggested a
matching pearl necklace or amatching pearl bracelet or
something along those lines.
If you create a number of itemsin a specific pattern like,

(22:26):
let's say, you make cuteaccessories from fabric that you
make.
So like if you're anillustrator like me, maybe you
do pattern or surface design andthen you have your patterns and
surface designs turned intofabric and you make stuff out of
the fabric to sell.
So you know, somebody buys ascrunchie in your candy cane

(22:49):
pattern but you also make a booksleeve in a candy cane pattern
or a makeup bag in a candy canepattern.
When they go to checkout withthat scrunchie, why not have
something pop up showing themother items in that pattern?
They've already shown you thatthey love the pattern.
They're buying the product, soall you need to do is put in

(23:10):
front of them other items inthat pattern or that match or
that go with that item.
And there's ways that you cantag your products in your
website so that the pop-up, sothat the plugins or what do we
call them in Shopify apps theapps that we use in Shopify can

(23:31):
automatically and easilyidentify products that match and
that go together.
So think of the different things.
If somebody, every time youcreate a product or you list a
product, think about what elseyou sell, that would make a
great add-on for that productand then set your site up
accordingly.
And if you don't have something, that would make a great add-on
.
That is a really great way todo product development.

(23:53):
What could I make that would bea great add-on for this item
and then make a note and seewhat you can do for it.
I would strongly recommend thatfor all your best-selling items
that you have something in yourproduct lineup that can be an
add-on for those.
Those are the items people buythe most.

(24:14):
So you know the 80-20 rule.
You go with that.
The things that people buy themost, those are the ones you
automatically want to have a wayto upsell them to something
that works really well with them.
So what else?
The next item on my list istiered pricing.
So I kind of talked about thiswith my stickers.
Tiered pricing is where you themore you know it could be, the

(24:40):
more they buy, the bigger thediscount they get.
But it can also be.
This is a great one for creativeservice providers is to have
different packages that peoplecan buy.
So let's say, I'm going to usemy favorite example of a wedding
photographer, because I thinkeveryone kind of understands
this example.
But if you're a weddingphotographer, you might have

(25:01):
different tiered packages with adifferent cost at each package.
So you have your basic weddingpackage.
This is for, you know, thebudget conscious bride who wants
photos but doesn't have a hugebudget to work with.
And so they want the basics.
They want to have specificshots, certain number of shots
and a certain number of extraadd-ons that they can get with

(25:22):
that.
Then you have your mid tierpricing, where they get a little
bit extra stuff, and then youhave your premium pricing, where
they get the whole bit extrastuff.
And then you have your premiumpricing, where they get the
whole shebang, um, a ton ofextras.
And we used to do this in um, inthe blogging world, content
creation, when we were workingwith sponsored uh, with brands.

(25:43):
We would have tiered packagesand we always used to kind of
joke that the where you wantthem to purchase is the medium
package.
You want the medium package tobe the one that kind of checks
90% of their boxes.
Um, you know you always want tohave that budget package
because there will always besomebody who needs that budget
package and you don't want toprice yourself out of helping

(26:04):
people who you know you couldserve really well.
So but you want most people tobe in that mid-range package.
That's what you're aiming for.
You want that mid-range packageto be just juicy enough that
people considering the basicpackage are gonna be like, oh,
if I just could find another$100 or another couple hundred

(26:26):
dollars, I could get so muchextra stuff.
It's like that movie theaterpopcorn right, the small is $10,
but the medium is $11, and youget so much more when you buy
the medium.
And then you're going to haveyour premium package, which is
going to have a ton of stuff.
This is the deluxe, gold, medal, platinum package.

(26:50):
That has probably a lot ofstuff that most brides are not
and grooms probably are, likeyou know that would be really
nice to have, but I really justdon't want to spend the extra
money on it Because, again,you're trying to drive them to
that mid-range package.
But there will always besomebody who wants that premium,

(27:10):
ultra, platinum package.
You will sell them.
You won't sell a lot of them,but you will sell them.
So the mid-range package is yourbread and butter, but you have
these packages on either side.
That can make sure that youhave good price points for all
your potential customers.
So that's a really easy way,and, of course, the packages are

(27:30):
always going to be cheaper thanbuying all of those items a la
carte off of your services menu.
So, um, you know, that's what.
That's what we're aiming for.
It's another form of bundling,um, so tier pricing can be super
effective.
It's a.
It's a great way, particularlyfor those of us who offer
creative service providers.
So, whether you're aphotographer, um, a graphic way,
particularly for those of uswho offer creative service

(27:51):
providers.
So, whether you're aphotographer, a graphic designer
, a content creator, all thosetypes of things, there's a place
for tiered packaging for mostof us.
Another option for increasingyour average order value I think
we're on number four now.
Yes, number four on the list isproviding a gift option.
So this is where you mightoffer an additional service for

(28:14):
people purchasing something as agift.
It could be gift wrapping, itcould be customization, it could
be writing the card for them.
In the greeting card worldwhere I am, there are people who
sell cards and who will writethe card for you, address the
card for you and if you aremailing the card to somebody in

(28:35):
the country that they're in,they will put the stamp on it
for you and they will put it inthe mail for you for an extra
fee.
So you can buy the card ontheir website or on Etsy and
never actually receive the card.
You don't need to write thecard out, you don't need to mail
the card.
They will do all of that foryou for a fee, of course.
Same with gift wrapping.
You know how many places haveyou been where they offered a

(28:56):
gift?
Wrap it for you?
It's an extra three, fivedollars, depending on the size
of the parcel.
Often that's a great way aswell.
If you want to support acharity, you can put the gift
wrapping fee towards a charity.
So if people purchase from you,you can offer gift wrapping.
That $3 goes to your charity ofchoice.

(29:18):
Okay, next up on our list, thisis number five, offering limited
time discounts on higher priceditems.
So this is another way toincrease your average order
value.
So this is another way toincrease your average order
value If you've got some higherend items that maybe you don't
sell as often because they arehigher end or they cost more, do

(29:38):
you have the ability?
Have you priced themappropriately so that you can
offer a discount from time totime?
Again, with discounts you haveto be very careful because you
don't want to train yourcustomers to expect discounts,
unless that's your businessmodel.
But I think for most creativesand artists and makers, that's

(29:59):
not the business model most ofus want to have.
But if you can create asituation a couple of times a
year where you do offer adiscount on those high-end items
that you make, times a yearwhere you do offer a discount on
those high-end items that youmake, so, um, you know, if
you're an artist and you selloriginals and prints, um, maybe
your originals go on sale once ayear, uh, you have like an

(30:20):
in-studio sale where people cancome in and they can purchase.
Instead of buying a $25 print,they're buying a $500 original
but you're giving them a 10%discount, so it's going to be
$450 instead of 500.
So that's another way that youcan increase your average order
value.

(30:41):
Next up on the list, number six,is creating a subscription or a
membership service.
So subscriptions are a fun waythat a lot of creatives will do
this.
So offer a subscription box.
So this is where they sign up.
Your customer signs up toreceive something once a month
or once a quarter or twice ayear I mean the length of the

(31:03):
timeframes of the subscriptionsare completely up to you.
But the idea is that it createsa guaranteed monthly income
because they are and I'm justusing monthly, because most
subscription box services dotend to be monthly so you are
getting guaranteed revenue everymonth once that person signs up
for that subscription forwhatever timeframe six months a

(31:23):
year.
But it's also a way to add moreproducts into the box than they
might buy on their own.
So you might have somebody hityour website.
In my case, maybe they'relooking for a birthday card.
They buy the birthday card.
It's $7 or whatever they coston my site I don't even remember
right this moment.
They buy the birthday card oneand done.

(31:45):
They've spent $7.
But if you could sign them upfor a greeting card box every
month or every quarter and inthat box they get three cards or
five cards of varying types.
So you know, you want to makethem probably kind of generic or

(32:06):
maybe they have a seasonaltheme to them.
So they get Christmas andholiday themed cards in November
and they get lovey dovey cardsin January, that kind of thing.
You can charge more becausethey're getting more cards.
You can still give them a bitof a discount because they're
buying them together in a box,but they're spending more than

(32:26):
$7.
Instead they're spending $30 amonth.
So you turn that one purchaseinto a recurring $30 monthly
purchase.
That's going to have a bigimpact on your average order
value and there's all kinds ofdifferent ways that you can do
subscriptions.
I've seen so many people do them.
We had Deb Wong on the show.

(32:47):
I will put a link to her twoepisodes because they're two of
our most popular episodes,particularly the one we did on
how to start a subscription box.
But she sells tea.
She does a tea.
She used to do a teasubscription box.
She doesn't do them anymorebecause she's focused, I think,
more on her bagged tea asopposed to some of her other

(33:08):
items that she used to sell.
But she had a very successfulsubscription box.
I've seen people do it withgreeting cards.
I saw one a few weeks ago.
Somebody did it with bookmarks.
They're an illustrator and theydo a bookmark of the month club
kind of thing, where people geta new bookmark every month or
they get a series of bookmarks.
I've seen people do it withcandles.

(33:29):
I've seen people do it withcandles.
I've seen people do it withbath and body products.
There's so many different waysand when I know a lot of us get
very excited when we're asked toput an item in a subscription
box and then I'd see a lot ofvery disappointed people when
they realize that it didn'tresult in new customers and
that's because you're puttingyour item into somebody else's

(33:50):
brand.
But what if you could make asubscription box that is all
about your brand?
I think that is a much moresuccessful way to do it than to
put your item into somebodyelse's box.
Just my opinion.
You can also offer membershipservices.
So this is where you see peopledoing things like Patreon,

(34:12):
where they try to draw theircustomers into supporting them
on a monthly basis through asubscription service where they
get extra perks or where theyget, you know, in the
illustration community, which iswhat I'm most familiar with,
because that's a lot of what Ido In the illustration community
, which is what I'm mostfamiliar with because that's a
lot of what I do.
So many illustrators will havedifferent tiers in their Patreon

(34:34):
, where the low tier is you justget access to a bonus
newsletter or something, butthen they'll have a higher price
tier where you will getstickers every month, and then
they'll have another tier whereyou get an art print every month
, and then they'll have a reallyhigh tier where you might get

(34:55):
an original piece of work andwhich, of course, obviously has
a lot more value than a printand they will usually limit how
many of those subscriptions theycan take on.
But that's a really interestingway to look at building.
It builds a community aroundyou, so you're bringing those
core customers in and buildingan even tighter relationship

(35:16):
with them, but at the same time,they're spending money every
month in exchange for somethingthat you are giving them.
So those are both really greatways to increase your average
order value, but to alsoincrease customer loyalty and
customer community around you.
So that was one that I reallylike.

(35:37):
Number seven on our list is afree shipping threshold.
This is really important rightnow during the holiday season,
when people are buying andshipping.
So the idea behind this is, ifthey spend a certain amount of
money, their shipping is free.
Now you have to be careful withthis.
You have to do the math and youhave to make sure that you are

(35:58):
not losing money by offeringthem free shipping.
And the idea is that you lookat what your average order value
is now.
So let's say your average ordervalue right now is $25.
The idea is you want to makesure that your free shipping
threshold is at an amount thatis higher than your current
average order value.
So if your average order valueis $25, you might decide to

(36:21):
offer free shipping if theyspend $35.
Again, you need to make sureand this is really tricky in
Canada because our shipping isexpensive here, but you need to
make sure that the cost of theshipping isn't eating away at
all your profit.
So, yeah, if it's going to costyou $20 to ship that item

(36:42):
within Canada, you want to makesure that you're making a lot
more than $20 in profit fromthat order.
So I would think probably formost of us in Canada, we would
want our shipping value, ourfree shipping value, to be
somewhere in the anywhere fromthe $60 to $100 range before
they have access to freeshipping.
For some of you, that might notwork with the price of the

(37:04):
products that you sell.
So that's something to consider.
You really, like I said, youreally need to do the math and
you need to know your numbersand you need to make sure that
you are making a good profitalready and that you're priced
appropriately.
Or this won't work, but if themath works out, this is such a
great way, psychologically, toget people to spend more,
because how many of us havefilled our cart and realized we

(37:26):
are $5 away from free shipping?
And of course, we go backbecause we know that shipping is
gonna be $20.
But if I can just spend anextra $5, the shipping will be
free and of course, the shippingis not really free.
It's built into the cost ofeverything that I'm buying.
So that's what you have tothink about in those situations,
but it's such a powerfulpsychological tool to use.

(37:49):
Number eight on our list isvolume discounts.
So again, this is kind of whatI was talking about when I
mentioned that when people buyone sheet of my stickers, they
pay full price.
When they buy three sheets,they get a little bit of a
discount.
When they buy five sheets, theyget a bigger discount, and this
is very common.
Most of us have probablyexperienced it when we're buying

(38:11):
our raw materials.
For most of us, when we're verysmall and starting out, we buy
10 of something and we're payinga premium for those 10.
But when we get to the pointwhere we're making a lot more
and now we can buy a hundred ofthat item in one fell swoop and
we get a discount.
And then, if you get up to thepoint where you're selling,

(38:32):
where you're purchasing athousand or 5,000 or 10,000 of
that item, you're getting areally sweet discount and it
helps bring the price of yourproducts down.
You can do the same thing foryour customers.
So, again, this isn't going towork with custom, one-of-a-kind
items, but if you make thingsthat can be sold in larger

(38:55):
quantities, this is a reallygreat tool to use and make sure
that you advertise that discount.
Number nine on my list ispre-orders and exclusive access.
So pre-orders is one that I useand that has been very
effective for me.
So again, I'm in the stationaryniche and one of my biggest

(39:18):
selling products every year ismy boxed Christmas cards.
Okay, boxed Christmas cards arean item that snail mail people
love, are an item that snailmail people love and a big chunk
of my customer uh, of my, myclient base, my customer base
are snail mailers.
These are the people who loveto send and receive mail and so

(39:44):
of course they love Christmascards and they love to buy a box
of them so they can send themout to all the people that they
care about.
And with Christmas cards youvery often have to send those
out in advance because you wantthem to get there before
Christmas.
So people are buying thosequite far ahead, and my first
year that I offered them I wasvery nervous because it was a
big investment for me at thatpoint.

(40:06):
This is very different fromselling one card and making one
card when somebody orders it.
Now I need to make 10 of eachcard for a box, because a box
would have 10 cards in it.
I needed to box them up and itwas a much higher price point
than anything I had ever soldbefore.
So I decided to offer them as apre-order in mid-September and

(40:29):
that way I would know how manypeople were interested and I
would have lots of time to makethe cards.
And if I needed extra cardstockI would have time to purchase
it and not worry about runningout at the last minute.
And it was also a really greatway to to see which designs were
the most popular, so that whenI did markets, if one design

(40:53):
didn't do well in the pre-order,I just wouldn't make that
design for markets.
I wouldn't take that.
I wouldn't waste the space, Iwould take the one that
everybody bought my best sellerto markets.
But it was so effective becausethe very first pre-order I did I
wound up doing Because the veryfirst pre-order I did I wound
up doing.
I did $700 in sales in thecourse of 24 hours, $700 in

(41:15):
pre-order sales and I think Iwas charging $30 per box and
that included shipping and ofcourse, they got envelopes with
it and they came in a cutelittle packaging and everything
envelopes with it and they camein a cute little packaging and
everything.
And it was great because thiswas more money than anyone had

(41:35):
ever spent with me.
This was a much higher pricepoint than my usual $7 greeting
card or my $10 4x6 art print.
This was three times the mostexpensive thing that I had ever
sold and it was a really greatway for me to get people to
purchase without me having tomake all this inventory and not

(41:58):
knowing whether or not it wouldsell.
And so once I knew how many Ihad to make.
That's how many I made.
And then I made a few extra tosell online and it was such a
good decision.
And now I try to do thatpre-order every September with a
new boxed card design and itvery often makes September my

(42:19):
highest revenue generating monthof the year, as opposed to
November and December, throughthat pre-order and people spend
far more money than me on thatpre-order.
What happens very often is theyalso buy.
I think I sell my box cards for$35 now, but they buy that box
card set and they usually buyother things.
They usually do a lot of theirChristmas shopping and stocking

(42:40):
stuff for shopping at the sametime, so very often those orders
can be anywhere from 50 to ahundred dollars, whereas my
normal order can be quite lowbecause I sell inexpensive
things like cards and stickers.
So this is a huge way for me toincrease my average order value
for the year.
And the people who buy themthrough the pre-order tend to be

(43:01):
my regular loyal customers whopurchase from me regularly, so
it's not often I get newcustomers through the pre-order.
So I am literally selling tothat core group that shop with
me every year and, yeah, it hasbeen very successful for me.
It's one of my favorite ways todo this.

(43:22):
You can also, as I said, offerexclusive access, and so this is
where you might decide to havea sale just for people on your
newsletter, and you might do itonce a year and you give them
exclusive newsletter subscribersget exclusive access to the
sale and then you can offerwhatever discount you want.
You could also do limitededitions of things.

(43:44):
So let's say, you make anoriginal and then you do a print
from it and you might offerthat print all year long, for
years and years and years.
You just keep.
As long as people keep buyingit, you keep making that print.
But what if you created a pieceof art and then decided that
you were only going to issue 20prints and they would all be

(44:05):
signed and that's it, when thatprint run is done, it will not
ever happen again.
You can sell those prints forfar more than you would sell the
print that you justcontinuously print and ship out.
So that's another example oflimited access is giving people
limited editions of things thatyou make once and that's it.

(44:26):
I've seen authors doing thiswhere this, particularly
independent authors, where theyare printing a special edition,
a beautiful hardback copy of oneof their books, with gilt edges
and ribbon bookmarks andincredible cover art.
And yeah, it's only available.

(44:46):
There's only going to be 300copies of this book made and
once it's gone, it's gone.
You'll still be able to buy thecheap paperback version, but
this beautiful, artisan qualityedition will only be available
for a certain number of peopleand, of course, it will be sold
at a premium price.
I think that brings us tonumber 10 on our list.

(45:09):
Yes, number 10.
Introducing a loyalty or areferral program.
This is another easy way.
How often do we go to the samegrocery store every month
because we have a loyalty cardfor that grocery card?
And how often does your groceryloyalty card have an offer on

(45:31):
it for you that if you spend$300 this month, you know what
it used to be if you spent $100and then it went up to $200 and
now it's $300.
That's the state of groceriesin this right now.
But if you spend $300, spend$300, you get an additional 2000

(45:55):
points.
Or if you spend $100, you get$10 off your next purchase.
The stores like Old Navy andOld Navy is really good at this,
chapters Indigo is really goodat this.
They give out the coupons.
They do this always in December.
You're buying a huge bucketload of books for gifts in
December and they give you acoupon where you get 25% off a
purchase of $25 or more inJanuary, because the idea is to

(46:18):
make you come back into thestore when it's not busy.
So you get a nice juicydiscount if you spend a certain
amount of money in January.
So that's another option thatyou can offer have a sale.
If you spend more than ahundred dollars, you get 25% off
your order.
That's a really, really simpleway to increase average order

(46:40):
value.
So I have 15 items on my list.
There's far more than this, butthis is where I'm going for
terms of keeping this episodemanageable.
But this is where I'm going forterms of keeping this episode
manageable.
For number 11, you could offer acustomization.
So we talked aboutcustomizations a little earlier
in the episode, but this iswhere you could create a product

(47:00):
that could be easily left alonewith no customization and still
be a perfectly lovely item orgift, and then you also offer
customization as a fee.
So this could be let's say, youmake little custom crochet
critters.
Those are super popular rightnow.
Maybe you could offercustomization where you create a

(47:21):
little like remember thecabbage patch dolls?
Maybe, maybe you do, maybe youdon't, depends on how old you
are, but the cool thing aboutthe cabbage patch dolls is they
all came with their own littlebirth certificate with their
name and everything, and it wassuper cute.
What if you did like a littlecustomization certificate for
your crochet stuffies where therecipient's name goes on the

(47:41):
certificate?
And I think that would bereally cute for gifts for little
kids.
You could also do something ifyou sell clothing items or you
know it'd be cute is.
I know what's really popularright now are things like Kindle
sleeves, book sleeves, littlepouches.
A lot of people are makingthose these days.

(48:04):
What if you added a tag ontothose and you customized it with
the owner's name?
You added a tag onto those andyou customized it with the
owner's name, so they know thatthat is their Kindle sleeve.
Or you sewed a little customtag onto the sleeve that says
this is Melissa's book sleeve.
That is a really simple thingthat you can do and you can
charge more for it because it'sa premium service.

(48:26):
Number 12 on the list is limitededition or seasonal products,
so we talked about this.
This is kind of a variation onthe one that we talked about
just a few moments ago, whereyou know you might have a
limited edition print or alimited edition book edition or
something like that.
You can also do this with likeseasonal items, so you may have

(48:49):
a can also do this with likeseasonal items, so you may have
a, let's say, you're doingjewelry and you might launch a
holiday themed sparklecollection, and these are items
that are only going to beavailable through Q4.
And once they're done, they goback into the vault.
Disney is an expert at this.
They don't do it as much nowthat we have streaming, but
before streaming, disney used totake their movies out of the

(49:11):
vault.
So when VHS became reallypopular, they would take Snow
White out of the vault.
They would release it on VHSfor a very limited period of
time and you would have to runout and get it to make sure you
have it, because then it wouldgo back into the vault and it
wouldn't be available for years.
And then when DVDs came out,they did the same thing you

(49:32):
could get the limited editionDVD and then it was gone.
And then when Blu-ray came out.
They did it with Blu-ray andnow we have streaming, so it's a
little bit different.
But if you could take some ofthose things that you make and
create a limited edition versionof them that's only available
or limited time only, you seethis with.
Like you know, I was watchingsome videos.

(49:54):
This is a couple months agowhen the Stanley Cup craze was
just bananas and people weregoing absolutely nutso over a
new Stanley Cup color that wasavailable at Target and they
were all rushing out becausethey had to get this color of
the cup, even though it'sexactly the same as the green
cup they already have at home.

(50:14):
Now it's available in pink withpolka dots and they have to
have that version.
So that's something else thatyou can do.
You can kind of have a limitededition color run or a limited
edition seasonal run, and thoseitems are only available during
that specific time and thenthey're done.
Or when you sold out, they'redone, creating a sense of

(50:35):
urgency.
That's another way that you canincrease that average order
value, number 13,.
We're getting close to the endhere.
Another way that you can upsellis with.
This is a great one for artists.
What if you upsold with?
You can buy a print as is oryou can buy a framed version of
the print, because framing isalways a big roadblock for a lot

(51:00):
of people.
I have prints sitting overthere behind me, if you're
watching on YouTube, that I havepurchased but that are not
hanging because I don't haveframes for them and I haven't
had time to go out and getframes for them.
I haven't found the frame thatI like for them yet.
But to be able to buy a printthat is already framed and I
have several on my wall herethat came with the frame when I

(51:21):
purchased them and they'realready hanging.
They're being enjoyed becausethe frame was there Are there
ways that you can make somethingthat you sell, that you can add
an upsell option on it so thatyou take some of the hassle away
?
We've had Heather on the show somany times and one of the
things she talks about is thatshe will even offer to hang one

(51:44):
of her paintings in a client'shome.
So obviously she just does thisfor people who are local to her
paintings.
Uh, in a client's home.
So obviously she just does thisfor people who are local to her
.
But again, she makes very largescale paintings and they can be
very tricky to hang.
So she'll go in and she'll helpthem choose the best place in
the house for the painting,where the light's going to be
perfect for it, or help themfind the right place in a

(52:04):
specific room where they wantthe painting.
She will bring the hardware,she will do the work, she will
get up on the ladder, she willput the nail in the wall and she
will hang the painting for you,make sure it's level, make sure
that you're happy with it.
So can you offer some kind ofservice like that, where you go
the little extra mile for alittle extra money?

(52:25):
Another easy way to increaseyour average order value Number
14 on the list, and this is agreat one for the holiday season
is create value with packagingand presentation.
So again, this is similar toupselling in our previous
episode, in our previous example.
I'm at the point where I'vetalked too much and my tongue is

(52:46):
tied.
But you might want to createlike a premium.
You could have a gift wrappingoption.
Most of us will do that,particularly on Etsy, and, as I
already mentioned, you get themto pay for the gift wrapping
option.
But what if you had a premiumgift wrapping option so they can
have just the regular thing,where they get it in regular
drugstore wrapping paper and itgoes into the box.

(53:09):
But what if you could create apremium gift wrapping option for
a really special occasion?
Or maybe you even hand deliverit, if that's something that you
can offer in your local area,where it's like an experience
opening this gift?

(53:29):
It might come in a box and thenthere's a beautiful
presentation inside the box andthey pull it out and there's
more to like.
The whole thing becomes anexperience.
You can charge us quite a bitmore money for something like
that than for the drugstorevariety wrapping paper with
scotch tape.
Okay, so last on our list and,like I said, there's so many

(53:53):
there's.
There's things that I haven'tgot to, and this is something
that is only limited by yourimagination.
You could offer onlineworkshops and tutorials as an
extra service.
I've seen a lot of people doingthis, where you purchase a book
.
Let's say this is a great onefor content creators, for

(54:15):
creative service providers, butlet's say you have an ebook or
something that you're sellinghelping somebody do something
related to what it is thatyou're involved in, and they buy
the book, but then they alsohave the option to add on a mini
course with it or a tutorial orsomething like that, or you
give them access to videotutorials.
I can't remember her name, butthere was a food blogger several

(54:39):
years ago who created a vegandesserts cookbook.
I'm trying to remember how shedid it, but she had all these
different levels of how youcould purchase the book.
I believe there was an ebookversion, I believe she had a
printed version, and she didthis all herself.
She didn't have a publisher,but the book did so well I
believe a publisher became veryinterested in it, so you could

(55:04):
get the ebook version.
You could get a printed bookversion.
You could also purchase theprinted book or the ebook with a
series of videos showing youhow to make the recipes, and I
think she had some other tiers.
But I remember speaking to herabout this once and she said
very few people just bought thecheapest version.
Most people wanted the extrastuff, they wanted the videos,

(55:27):
they wanted the tutorials, theywanted to have the hardcover
version of the book, and sothat's something that you could
consider doing and, like I said,this works really well if
you're in the creative servicesprovider area.
But I think, even if you're amaker or something you know, if
you can create an item, but thenfor an extra fee, they could

(55:49):
get access for, uh to you know,I think I'm just thinking, I'm
thinking out loud now but whatif you created?
Um, again, let's go back to thestuffies what if you created,
uh, some digital patterns wherepeople could make little clothes
for their stuffies or somethinglike that, and you sell that as

(56:11):
an add-on to the stuffies?
Yeah, something along thoselines, but I think that has the
potential to.
I think that's something thatwould work really well, like I
said, for creative serviceproviders and content providers.
Yeah, I'm, I'm, I'm thinkingthat one out loud in my head.
And there is one more bonus, onethat I did not mention here,
and I can't believe I didn'tmention it.

(56:31):
I thought I had it written down.
I did not, but this is a greatone for the holiday season and
it is one that you can easilyuse if you're working at markets
, and that is the buy one getone.
Okay, this is such.
They're called BOGOs buy one,get one.
But there's also there's somany different variations you

(56:51):
can do on this, and it could besomething as simple If you buy
one, you get another one at 25%off, or if you buy one, you get
a second one at 50% off, or ifyou buy one, you get a second
one free, or if you buy two, youget a third for free.
So it's basically another formof bundling, but you're giving
these to your discounts and themagic in it is kind of how it's

(57:12):
worded, because when you say buyone, get one 50% off, people
hear 50% off, right, and that'swhere their head is going to and
they think that's a great deal.
And it is a great deal, butit's not really 50% off.
Basically, they're getting 25%off each item, so they're buying
two items at 25% off each.

(57:34):
When you say 25% off, though,it doesn't have the same
response in the brain as whenyou say buy one, get the second
for 50% off, even though it's a25% discount on each item.
So you can think aboutdifferent ways that you might
want to do this.
When I worked as a cosmetician,we used to do these all the time
with things that people veryoften liked to purchase in

(57:56):
multiple.
So we would do it with thingslike lip liners, lip glosses,
lipsticks, basically anythingrelated to the lips.
We would also do it witheyeliner pencils, brow pencils,
nail polish, anything thatpeople that's a small indulgence
that people love to treatthemselves with.
People change their nail colorfrequently.

(58:17):
People like to have multipledifferent kinds of lip color and
things like that.
Very few of us have a signaturelip color that we wear all the
time.
Some people do Awesome, but alot of us like to change what
we're wearing based on our moodor how we're feeling, and so for
those smaller indulgence itemsto be able to offer a buy one,
get one or buy two, get one kindof thing it really does entice

(58:42):
people to treat themselves evenmore and that's a great way that
you can market it.
So that is it for this episode.
I hope I gave you lots of ideasfor ways that you can increase
that average order value because, as I mentioned, it's such a
simple way to increase yourrevenue and your profit without

(59:04):
having to do a lot of extra work, because, chances are, there's
at least one thing that Imentioned here that you have
done before and you'recomfortable with and that you
probably do on a regular basis.
So the idea being that you wantto combine a few of these
strategies at different pointsin the year.
You don't necessarily want torun them all at the same time,

(59:24):
but there are some that youcould run year round, like the
sticker example that I gave atthe beginning.
That is something that I offeryear round and it has been a
game changer for my stickersales.
So you might have somethinglike that that you can offer
year round, and then you mighthave things that are only
available during particularseasons, so you might only offer
free shipping during theholiday season or again like

(59:47):
seasonal themed items that youmight only offer during the
season.
So the idea is you want tocombine some of these strategies
and you also want to combinethem with like I mentioned at
the beginning, other businessbuilding strategies.
So you know, we never want toget complacent and not go out
and look for new customers.

(01:00:08):
You should always be lookingfor ways to grow your customer
base to get new customers in,but that is a hard gig and it's
something that you have to doover and over again and be
consistent with.
So why not also add in thestrategy of increasing your
average order value to theexisting customers that you have
at the same time and the beautywith average order value is

(01:00:30):
you're not increasing youraverage order value to the
existing customers that you haveat the same time, and the
beauty with average order valueis you're not increasing your
prices.
If a customer only wants to buyone item, that's all they have
to buy.
You're making the decisioneasier for them to buy more.
So that's it for this week.
If you have any feedback on thisepisode, I'd love to hear it.
You can always connect with me.
You can email me atandshelookedup at gmailcom.
You can leave a note in ourInstagram DMs at andshelookedup,

(01:00:55):
and if you're watching this onYouTube, you can leave us a
comment.
Give us a thumbs up, subscribeif you're enjoying our episodes.
We have a new season episodeevery second Monday and we are
still going through our prep forthe holiday series, which is
going weekly right now.
It is going to be on Thursdaysnow that we're into the regular
season, so that'll be continuingweekly until we are done with

(01:01:17):
that, which I suspect willprobably be sometime in late
November.
We're on task 12, I think atthis point, task 12, maybe task
13.
Yes, so thank you all so muchfor being here.
We'd love to hear from you.
If you're listening to this onyour favorite podcast app, you
can always go over to YouTubeand leave a comment, and I think
Spotify now gives you theability to leave a comment as

(01:01:39):
well.
I don't know how I get notifiedabout those.
I don't know if anybody's donethat or not.
I should probably look intothat.
But yeah, there's so manydifferent ways you can give me
feedback, or you can leave acomment.
Or if you have a particulartactic that works really well
for you to increase your averageorder value, share it with us
in the comments.
So that's it for this week.
We'll talk to you all againvery soon.

(01:02:06):
Thank you so much for joining usfor the and she Looked Up
Creative Hour.
If you're looking for links orresources mentioned in this
episode, you can find detailedshow notes on our website at
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(01:02:29):
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