The short answer
Average order value (AOV) is revenue divided by the number of orders. In a showroom business the dependable ways to raise it are: sell the room, not the piece; quote properly for delivery, installation and aftercare; make it easy to configure up to the better finish or the larger size; make sure the products your website and your team put forward first sit near the order value you're aiming for; and stop discounting to close.
Measure it per channel and per associate, and always next to the number of orders. A higher average from fewer sales isn't progress.
Most advice about average order value is written for online shops selling dozens of items per basket: free-shipping thresholds, "customers also bought" carousels, a pop-up at checkout. A showroom selling sofas, kitchens or engagement rings has fewer, larger orders, and a person in the middle of most of them. The levers are different, and several of them sit with your team rather than your website.
AOV, ATV and why the definitions matter
| Measure | Formula | Example |
|---|---|---|
| Average order value (AOV) | Revenue ÷ number of orders | £182,000 ÷ 46 orders = £3,957 |
| Average transaction value (ATV) | Revenue ÷ number of transactions (the in-store name for much the same thing) | Often used by store teams for till transactions |
| Units per transaction (UPT) | Items sold ÷ number of transactions | 2.4 items per order |
Three definitional choices change the answer, so decide them once and write them down:
- Which orders count. Paid orders only — not drafts, open quotes or abandoned checkouts, which would drag the average around for no reason.
- Gross or net. Before or after refunds. Net is the honest one; report both if you like, but don't mix them.
- One currency at a time. If you sell in pounds and euros, calculate each separately. An average that adds the two together describes no order anyone ever placed.
Seven ways to raise it
1. Sell the room, not the piece
The customer buying a dining table also needs chairs, possibly a sideboard, perhaps a rug and a light. They'd rather get it right in one go than make four decisions over four months. An associate who understands the room — its size, its light, who uses it — can put forward the pieces that complete it. That's service, not upselling, as long as the suggestions genuinely fit.
2. Quote everything the customer actually needs
Delivery, installation, removal of the old piece, fabric protection, an extended guarantee. Customers expect these, and leaving them off the first quote only means a second, awkward conversation later. Line items for services also make the quote easier to compare fairly with a competitor's.
3. Make it easy to configure up
Show the finishes, fabrics and sizes side by side with honest prices, and let customers see the difference in person. Many will choose the better option once they've seen it. What doesn't work, and doesn't last, is hiding the cheaper options or making them hard to find.
4. Point your website at the number you want
Your website's recommendations and category pages decide which products customers see first. If they're ranked only by popularity, a cheap bestseller can dominate every panel. Rank them partly by how close each product sits to your target order value, and the site starts leaning towards the orders your business runs on. There's more on this below.
5. Offer genuine sets
Suites, sets and matching ranges — the bed with its bedside tables, the sofa with its armchair. Price them honestly, so the set is a convenience, not a trick.
6. Make larger orders affordable
Finance through an authorised provider lets customers spread a larger order over time, and it can be the difference between the piece they want and the piece they can pay for today. It's regulated, so do it properly and be clear about the terms.
7. Stop discounting to close
Every discount comes straight off your average order value and, usually, straight off your margin. If something needs to change to close a sale, trade something that costs you less than a price cut: a delivery slot, a fabric sample posted out, a floor model reserved for a day. And check first that a discount is actually what's in the way — most considered decisions stall on fit, timing or a second opinion, not price.
Ranking your catalogue towards a number
Here's the idea behind lever four in more detail. Most recommendation engines score products on signals such as bestseller, popularity and newness. Add one more — how close the product's price sits to a target you set — and give it a weight.
The important design choice is that this should be a curve, not a cut-off. Against an £1,800 target, a £1,900 piece should score near the top and a £200 one near the bottom, with everything in between falling away smoothly, and you should control how wide that curve runs. A hard cut-off hides good products just outside the line; a curve simply leans.
Two guard-rails make it safe to switch on:
- Balance categories, so the target doesn't fill every panel with one category that happens to sit at the right price.
- Let merchandising decisions win. A product you've deliberately featured should still lift, whatever its price.
And the ranking has to be explainable. When a product ranks oddly, somebody should be able to see its score broken down signal by signal, rather than guess.
Measure it properly
- Per channel — each showroom, the website, any concession or pop-up. Channels with different average orders need different tactics.
- Per associate, carefully. It's useful for coaching; it's a poor basis for pay on its own.
- Per category, so you can see whether a rise came from selling better or just selling a different mix.
- Against the same period last year, because showroom trade is seasonal.
- Always next to order count. Average order value can rise because you lost your smaller orders. That's rarely what you wanted.
If you change something on your website to raise order value, measure it against a group of visitors who didn't see the change; see holdout groups for how.
What not to do
- Don't hide cheaper options. Customers notice, and they don't come back.
- Don't push add-ons that don't fit. The protection plan on a £90 lamp costs you more in trust than it earns.
- Don't invent "was" prices. A reference price should be one you've genuinely charged.
- Don't celebrate the average alone. Look at revenue and order count beside it.
Where Stitchwork fits
Stitchwork ranks your catalogue on signals you weight yourself — bestseller, popular, carted, newness, featured, on offer — and one of them is a target average order value. Set the number and raise its weight, and the products near it rise everywhere at once: the recommendations panel on your website, your category grids, and the list in your associate's hand when someone walks in. It's a curve with a width you control, not a cut-off.
Category balance stops one shelf taking the whole panel, and a featured product still lifts even for a fully personalised visitor. Nothing is a black box: the rankings page breaks each product's score down signal by signal, shows how much data is feeding each one, and lists any order lines whose product codes don't match your catalogue. Every channel has its own trade view — revenue, orders and average order value per currency, against the same span before. See the ranking controls, or read about recommendations and ranking.
Questions people ask
What is a good average order value for a furniture store?
It depends entirely on your range, your prices and your customers, so industry averages aren't much use. Track your own average by channel and category over time, against the same period last year, and judge changes by whether revenue and order count moved with it.
How do you calculate average order value?
Divide revenue by the number of orders for the same period. Count paid orders only, decide whether you're using revenue before or after refunds, and calculate each currency separately.
Is average order value the same as average transaction value?
They're close. Average order value is the common term online and in reporting; average transaction value is often used in stores for till transactions. The formula is the same: revenue divided by the number of orders or transactions.
Does raising average order value hurt conversion?
It can, if you push customers towards things they didn't want or hide cheaper options. Tactics that help customers — completing the room, quoting properly, showing the better option honestly — tend to raise the average without costing sales. Watch order count alongside the average to be sure.
Can personalisation raise average order value?
Yes, when it's pointed at the right target. Recommendations ranked purely by popularity tend to favour cheaper items; adding a price-target signal and balancing categories lets personalisation lean towards the order value your business needs, while still reflecting what each customer is interested in.