The café is a nice and successful coffee shop. It has a nice atmosphere and friendly people behind the counter.
The café starts selling freshly squeezed orange juice in limited quantity to provide more variety to their early morning patrons. One employee would squeeze the oranges and produce about 10-12 cups of it. Orange juice has as high a profit margin as coffee. And they thought that by giving more choice to people, they might increase sales. But they didn’t do too well. They didn’t even sell those 12 cups a day.
Then one day, with one small change, they suddenly start selling all their orange juices.
They place the fresh cups of orange juice in a tray of ice right next to the cash register. And people start picking up the cups on impulse while making payments. Soon the café starts making 18 cups of orange juice a day.
It doesn’t take much time to produce 18 cups of fresh orange juice every day. But with $3 per cup coming in, the café just adds $54 a day, or $19,710 a year with minimal effort!
Action summary:
° Place the products in good positions. A different product position can make all the difference.
° Make it easy for people to make an impulse purchase at the check out counter. Those small sales add up pretty quickly.