Business Growth Power Principle # 19

Principle 19

Upselling

An opportunity to make more money, quickly

Here is a selling technique that is very similar to back-ending. A backend sale is when you sell a second product after the first. Upselling involves selling enhancements or additions to the original product you have just sold. Anyone who has purchased a new car has experienced the upsell – car dealers use this technique very aggressively and successfully. After you agree to buy the car, the representative takes you down a list of options you can agree to add to your new car right now at the point of purchase: antirust coating, mud flaps, larger engine, automatic transmission, the bigger better stereo, a GPS navigation system – the list can be long. Just about everybody agrees to at least some of the additional options, and the bottom line is, the car dealer can make several hundred to several thousand pounds in extra profit without having to capture an all-new customer and sell a whole new car!

There is no reason why you should not engineer upselling into your sales too. By reviewing your closing strategies you could increase your average sale by 15%, 25% or even 40%! Just by asking a simple question or utilising an easy process.

Sellers of home electronics equipment have recently discovered the magic of the “extended warranty.” When you buy a new TV, stereo, or computer, it most likely already has a one to three year warranty against product defects. But for an additional £25 to £150, the warranty can be extended another year or so. Studies show that only 12% of customer who opt for the extended warranty actually end up using it. That means 88% of all those extended warranty sales are pure profit for the seller – money they would not have had if they hadn’t simply made the offer.

Super-size sales and increase profits

Upselling can be as simple as asking a restaurant patron if they would like desert after their meal (McDonalds ask ‘Would you like to go large?’), or asking a cinema goer if they would like to add a box of chocolate drops to their purchase of popcorn.

The upsell takes only the few seconds of time it takes to ask the customer who has already bought to simply buy a little more right now. It’s an almost effortless and inoffensive way to dramatically increase your profits.

It doesn’t cost any extra money to make use of upselling

No matter what you sell, you can almost certainly upsell it with some kind of ready-to-go enhancement or add-on – not doing it is a lost opportunity to make a whole lot more money effortlessly, quickly and easily.

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