What the Definition of Ancillary Retail Sales & Services Means

ancillary services for retailWhen you are in the retail sales business you typically have a main service or product that you sell that may comprise of 50% or more of your total sales. Ancillary retail services are either different from, enhance, or support the main services/products of a company. They are essentially revenue generated from the sale of products and services that are NOT the company’s main line of business. For example when securing retail space for lease in Austin Tx your main business might be a hair salon however you also may offer nail services.

By introducing new services and products retail companies are able to create more growth opportunities. Most businesses have some sort of ancillary revenue, and in some cases what started as ancillary sales can become the main source of revenue. For example food and beverage sales at gas stations used to be an afterthought, however now at most gas stations food, snacks, and drink sales have surpassed gasoline sales.

Examples of Ancillary Services

  • Printing company that starts selling printer ink.
  • Ice cream company that decides to start selling ice cream scoops
  • Donut shop that sells coffee
  • Hair salon that starts offering nail services
  • Gas station that offers car washes
  • Business school that offers career guidance and placement services
  • Hospital that offers counseling services
  • Retail stores that offer delivery or installation services

Benefits of Offering Ancillary Products

  • Generate higher revenue per customer or member
  • Increase retention levels and repeat customers
  • Contribute to bottom line

How to Succeed With Ancillary Revenue Sales

  1. Define the target market for each product or service – Segment your customers based  on gender, age, habits, goals, needs, and objectives
  2. Determine the market demand for your demographics – Run demographic reports once a year and pay attention to population growth, % of people working, household income, etc.
  3. Identify products and services for your ideal market – Now that you know who you want to offer more services and products to think of products and services that will accommodate their wants and needs.
  4. Market the new ancillary services and products – do Facebook or Google advertising, start a facebook page, email marketing, set up products displays, etc…
  5. Have a sales strategy – Make sure your employees are trained on the ancillary services. Gather as much info as possible about your target audience and understand their needs, wants, and goals, as well as what motivates them to buy. Create processes for handling product inquiries and post sale communication.


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