|
The cost of finding new customers or clients is a big expense for
most businesses. "Upselling" those new customers maximizes
your return on that expense. It's a simple approach any business
can implement quickly and get immediate results.
Upselling is a procedure designed to get more money at the point
of sale. You implement it by offering your customers or clients
an upgraded product or related item at the time they are making
their first purchase. Customers will never be more receptive to
an attractive offer from you than when they're paying you money.
You personally experienced upselling if you ever called to order
a product advertised on a TV informational. The order taker automatically
offered you an additional related product at a special discount
only available if you ordered it now.
Many businesses avoid upselling because they're afraid the customer
may get irritated and not buy at all. I've found the opposite is
true. Customers appreciate your thoughtfulness in offering them
an added benefit they didn't know about. Some business owners have
told me they don't upsell because it's not feasible in their business.
They really believed that until I described the upselling offers
used successfully by some of their competitors. Every business can
implement a successful upselling program.
WHAT TO OFFER
A new distributor for an MLM company called me recently. She wanted
advice about how to increase her profit margin on new sign ups.
I suggested adding a training manual as part of the initial package
for all of her new distributors. She took my advice and personally
collects the payment for the manual. She instantly pockets a 60%
profit on the cost of the manual in addition to the commission her
company pays her for each new distributor she sponsors. Plus, each
of her new distributor gets a valuable training tool.
Think about your business. What else can you offer customers or
clients while they're making their first transaction with you? Can
you offer them...
** A discount on a related product or service? ** A volume discount
if they buy more now? ** A special priced combination package including
the initial product or service?
Your offer should include preferential special pricing. Most customers
will accept your upselling offer when it's a good value and the
price is no higher than 60% of the cost for the initial product.
HOW TO PRESENT AN UPSELLING OFFER
Upselling has none of the characteristics usually associated with
selling. It's so easy that I've seen even unskilled order takers
achieve high acceptance rates by reading printed scripts. Upselling
is simply offering a suggestion to an already receptive buyer to
enhance the value of his or her purchase.
Present your upselling offer casually, as almost an afterthought.
For example, if you were speaking with your customer in person or
by phone you might say: "Your website will be up in 48 hours.
If you'd like, we can double your server space, include unlimited
autoresponders and a shopping cart for secure credit card orders.
The regular price for all of this is an additional $40 per month.
But I'll give it to you for just an additional $25 if you order
it today." You can make this same offer on paper or post it
on a website. It doesn't have to be verbal to be effective.
Most businesses I've surveyed report acceptance rates between 40%
and 60% for their upselling offers. This is a big increase for so
little effort. Plus, the profit from the upselling portion often
exceeds the profit on the initial product or service because there
are no additional expenses involved.
If you're not making upselling offers to every new customer or
client, start doing it now. It's an easy way to boost your profits
fast with little effort and no expense.
-------------------------
Bob Leduc retired from a 30 year career of recruiting sales personnel
and developing sales leads. He is now a Sales Consultant. Bob recently
wrote a manual for small business owners titled "How to Build
Your Small Business Fast With Simple Postcards" and several
other publications to help small businesses grow and prosper. For
more information... Email:BobLeduc@aol.com Subject: "Postcards".
Phone: (702) 658-1707 (After 10 AM Pacific time) Or write: Bob Leduc,
PO Box 33628, Las Vegas, NV 89133
|