The Dog Walker's
Business Growth Formula:
Increase Average Transaction Value
Increasing Average Transaction Value
REMINDER:
There are 3 ways to increase profits for any business;
- Increase the number of paying customers
- Increase the average transaction value
- Increase the frequency of transaction
Here, we will look at #2;
Increasing the average transaction value ie increasing the amount the customer pays.
There are a number of ways to achieve this increase in transaction value. The most obvious is to increase prices. There are many other methods, and combined together they provide a powerful way to increase your business profit.
1. Increase Your Prices
Increasing your price per walk is the simplest way to increase your transaction value. There will be a tipping point beyond which your customers will not accept a price rise, but up to that point, you should be able to gently increase the price over time, and it will not make a difference to continued custom.
Price increases can and should operate in tandem with other elements here, to justify the rise and to help it stick. ALWAYS justify a price rise. Always communicate that price-rise justification to your clients.
Never just "Prices are going up to £X". Instantly the reader is questioning if that is acceptable, justified and the reason why - and IF they continue doing business with you.
START with the justification, then state the price-rise, to frame the price rise as justified, with a reason why.
"
"Because of the rise of the cost of living (fuel costs to get out to the walks etc), and because we want our team of excellent Dog Walkers to be rewarded and valued for their hard work doing their absolute best for your dogs, we are having to rise the cost per dog-walk ever-so-slightly, to £X. You still get [these benefits]".
Kari Metters - Your Dog Walker
By increasing your price per session, you increase your profit margin, which means you can service your clients better, because you have more money at your disposal. This also means you have more marketing budget at your disposal to reinvest into your business.
Think of the government's tax rises each year on cigarettes, alcohol or fuel; They go up by small increments each year, so it doesn't kill the market. Buyers accept this small increase. Repeatedly.
With existing customers, a gradual, sequence of small price rises will likely prove better than one sudden big price rise. A 5% or 10% rise this year and the same next year will be more beneficial to continued repeat custom than a 20% rise this year.
2. Offer Larger Units of Purchase
Most fast food chains have a "go large" option. If you ask for popcorn at the cinema, they will usually ask if you want the regular size or the large(never "small" ! ). McDonalds will ask if you would like to "go large" or "super-size" your order.
In this way, they increase the transaction value.
This is an 'upsell' or upgrading a customer to a 'superior' or larger version of the same product.
You might increase our dog-walk time by 20 minutes more (for those dogs that can), and charge more accordingly.
Or offer a slight discount (relatively, pro-rata) for a longer walk. Or a more frequent walk.
3. Offer Cross-Sells of Related Products
If you go in McDonalds and ask for a burger, they will most likely ask you "Would you like fries with that?"
Not everyone says yes, but a lot do. This one simple question is responsible for a vast proportion of McDonalds' profit.
This is a 'cross-sell'; adding something else to the order that is a logical fit with the original product.
Congruency is key. ie the cross-sell fits with the first purchase.
Another example of an effective cross-sell is on Amazon's website: "People who bought that also bought this" with a suggestion of an additional product.
Point of sale is the most powerful time to offer a cross-sell. Right when they are buying. This is why you see the impulse-buy products at the supermarket checkout. Your website's "Thank you for buying" page is prime real estate to offer other services.
Sell Other Relevant Products
What else could you sell to your dog-owner clients?
What other services do you - or could you - offer?
Could you charge enough for a dog-washing service after a walk (not full grooming - just a wash and towel-down, so the client doesn't get a muddy dog back home in winter)
The add-on service doesn't have to be yours.
This is where your Maven Partnerships and cross-promotions kick in, with you promoting them, and earning.
Some successful Dog Walkers also have a Doggy Daycare facility. Many don't. You could upsell to someone else's dog day-care facility. Partner with your local dog daycare facility for a share of the revenue.
And what about...
Luxury Dog-Friendly Family Holidays
What if you could earn handsomely from recommending your clients to a luxury dog-friendly family holiday villa in the remote, tranquil French countryside?
Their family summer holidays, but with their dogs. In the summer-sun of southern France.
That is exactly what you can do here.
Have a look at this page, and see if you or your clients might enjoy a family holiday here with the family dogs...
Imagine your family holidays here
and
Watch this video for a quick view (this is from our villa website, for clients to see) ...
You can earn £400 per client booking.
All you need to do is link to this page
https://gitedordogne.co.uk/luxury-dog-friendly-villa-france/
And state that your clients can get £100 discount off the price of the holiday when they mention you and your business.
And you get £400 per booking.
(FYI this dog-friendly villa is our family's second home in France, which is why I know so much about it - it is mine personally. You are welcome to contact me to ask any questions about it or have a good look around the website here).
How Could YOU Promote This & Earn?
On your website or social media, would seem the obvious answer. Also, anywhere you interact with your clients.
I just asked ChatGPT to write me a quick text ad for this villa, and this is what it said (you might want to ask ChatGPT for a new version so that yours is different)
Escape to Luxury in the Heart of the Dordogne – Bring Your Dog Too! 
Looking for the perfect getaway that includes your four-legged friend? Discover this Luxury Dog-Friendly Villa nestled in the stunning Dordogne countryside – where French charm meets modern comfort.
Private & Peaceful
Stylish, Fully Renovated Villa
Huge Garden & Dog-Friendly Amenities
Large Heated Pool
Surrounded by Idyllic Rural Countryside & Historic Towns
Whether you're strolling through nearby medieval villages, relaxing by the pool, or playing in the massive Games Room, this villa is your home away from home – for both you and your dog.
Sleeps up to 14 | 5 Bedrooms | 5 Bathrooms Fast Wi-Fi | Smart TV | Fully Equipped Kitchen No Extra Charge for Dogs!
LIMITED OFFER: Get £100 discount now, when you mention my name.
Book your unforgettable escape now at:
GiteDordogne.co.uk
You can put that link to the dog-friendly holiday page - and some variation of the advert in the box above - anywhere you want online - on your website, on your Facebook page.
Where would get the most people viewing it?
- Your website, as outlined above
- Your Facebook page
- You might email out to our clients about it.
- Message clients via WhatsApp to suggest it.
Add an advert to it on your own website. You can leave it there long term and let traffic come through for it over time (always make such an advert open a new tab window, so that your website is still open underneath)
...
Other Products & Services To Cross-Sell
What other company or business could you partner with to offer their products or services, in return for a share of the revenue?
- Dog DNA testing
- High-quality Dog food
- Dog supplements, like joint supplements
3a. Develop a Back-End Offering
A back-end service or product is something that you sell to the customer immediately after they have just purchased from your normal 'front end' selling system.
For a website, this would mean the initial transaction is made starting from the homepage and purchasing. Then on the "Thank you for ordering" page, or afterwards by email, the back-end product or service is offered.
Customers who have already bought are between 5% and 500% more likely to buy again, compared to new customers, depending on which studies you believe.
Customers who have already bought from you already know, like and trust you. So you don't need to work to get them to know, like and trust you; you need only maintain that relationship.
A customer who has just bought is 'hot' to buy from you again. The sooner after the initial purchase, the more likely they are to buy from you again.
I recently read a statistic that said of customers who have just bought, 20% will by a similar or related product for 5-times the price of the first purchase.
So the "Thank you" page or follow up emails are a great place to mention all the other products that a dog-owner might benefit from.
Here, you can offer other products and services, like the luxury dog-friendly holidays, and dog-wash service, as outlined above.
AND this is also where you can ask for more frequent repurchasing. See the next section for details. In short, you offer a slight discount for a repeat-payment subscription eg regular weekly or daily walks etc.
4. Bundle Your Offerings as a Package
Rather than adding an occasional upsell or cross-sell, instead, by bundling services as one package, and including as many add-on benefits, you can increase the regular price, not just a once-only transaction.
You might call it a bronze, silver and gold service, and differentiate each by adding extra value and bonuses to each successive level.
Use the Automated Payment service to automate a repeat payment bundle.
5. Position Yourself Upmarket
By repositioning your service as further upmarket you can charge more and more easily, by making 2 concurrent improvements.
Enhance your marketing and service such that it looks and feels more expensive, more upmarket and high-end, more 'Rolls Royce'. Have better looking brochures, business cards and website. Add extra value to your existing service in whatever way you can.
Actively market to more affluent customers, who will not have a problem paying higher prices. Often such customers will seek out higher priced services because many act on the assumption that higher prices means better quality.
Similarly, if you can make your service suitably different, you will make yourself attractive to a certain type of customer who is prepared to pay to be different. Think of Virgin Airlines (and most Virgin branded products). They are notably different from the norm, and their customers love them for it.
Random idea - Doggy Picnics, mid-walk.
Imagine the Instagram-ability of a photo of you sat in a park on a sunny day, picnic blanket down, with a few dog bowls with some tasty treats for them.
6. Prove Your Expertise
We looked at using your Qualifications in the Offline Marketing section here, but it obviously applies equally here.
Customers need you to prove you are the expert. The clearest way to demonstrate your expertise is to have higher-level qualifications.
Whatever you offer, you need to have qualifications in that subject to the highest possible level.
A lower-trained person is not going to be able to charge as much as a higher-trained person.
Customers use qualifications as a shortcut to making their buying decision (and their decision to continue). They will likely compare the skill-level of your competitors. Improve your chances with higher-level qualifications and/or extra courses.
There are some online training courses that you could more easily (and less expensively) complete.
This may sound a glib suggestion. But what qualification can you most easily elevate yourself with? Make sure you show your clients the qualifications you already have.
By having qualifications higher than your competitors, you can attract more customers and charge higher rates.
7. Expand Your Own Services
Could you offer additional services?
- Dog day care?
- Kennels?
- Dog grooming
- Dog wash-and-dry after walks
- Medication management (overseeing that they are up to date with jabs and worming pills etc)? This is a great opportunity to have a valid reason for contacting each of your clients, to build the helpful relationship. Each month saying "it is time for your dog's worming pill" or "Your dog's vaccination boosters are due next week". And where relevant you could be upselling your other services or products that you recommend as well. There is some good software that will do the administration of this for you. More on that later...
What additional service could you add?
In this way, you can increase what you are offering and hence charge more.
Feedback & Add-Back
Having read this 'Increasing Transaction Value' section, add your comment below with your feedback to answer these 3 questions...
- What was most useful?
- Any suggestions of your own to help others?
- What more do you want to know about?
(Scroll below comments for links to the next section)
The rest of this Business Growth Formula is as follows;
Introduction & Marketing Theory <<
- Increase your client base: To read the detailed methods for getting new potential clients, converting them to paying customers, and keeping them...
- Click here to read the Online methods <<
- Click here to read the Offline methods <<
- Click here to read the pure Retention methods << - Increase your average transaction value
- Click here for details << - Increase the frequency of repeat purchases
- Click here for details << << NEXT