Power
of Upselling...
Dear
Associate,
I
remember the day I visited Moda Italia in Palo Alto to pick
out a business suit. I chose a Georgio Sanetti three-button
in a light khaki. Mr. A.J. Weissman was pleased to make the
sale, but more importantly he pointed out the accessories
that would enhance my suit.
No
doubt he knew his craft...
He
sold me a matching shirt, tie and socks. He did this by laying
the tie and shirt beside the suit and it was simply breathtaking.
The combination was irresistibly flattering. And if I didn't
make for the door, he would have sold me a pair of shoes,
a belt, silk designer underwear and another suit.
The
total price jumped another $75 because he took the time to
suggest complementary items. Items that never entered my mind
when I first walked inside Moda Italia. My original plan was
to get a suit—and quickly get out. But that clearly wasn't
the case.
This
is the power of upselling.
The
customer has handed you her credit card. She's in a buying
mood. She's hot for your product. This is the best time to
make her another offer to increase store revenue and personal
commissions. A couple of upsells each day and you could bring
in a few hundred extra dollars.
You
can offer variations of the upsell item. We have these in
sexy red, hot pink, or business blue. And then ask if they'd
like one, or all three at a group discount.
But
avoid being pushy. Show your customers how they'll benefit
with the additional item(s). How they'll generate more looks,
smiles and compliments. Avoid pressure tactics that may backfire
on you.
Below
are five types of upsells to generate greater personal profits:
1)
Add-ons. These are the most common. They could be options
like chrome wheels, wood trim or leather seats for an automobile.
Maybe special reports related to your flagship product. A
purse or jewelry with an imported dinner gown. Or an extended
warranty for your new home stereo with surround sound. And
of course, the most famous add-on is, "Do you want fries
with that?"
2)
The upgrade. Offer your customer the option of upgrading
to a gold or platinum package. Show him, for a few extra dollars
a month, how he'll get all these extra benefits. And how each
benefit alone is worth so many dollars to him.
I
used to shop at a tool supply store because I loved working
on my classic cars. And the salesman would always ask, "Do
you want the cheap one—or the good one?" Obviously,
with other patrons in the store, I never wanted to reply,
"The cheap one."
Besides
I took pride in my tools. I didn't want them to snap during
usage. I've always bought Made in the USA tools for
that reason.
Car
rental agents persistently try to persuade you to buy their
insurance and upgrade to a larger model. They always start
with, "For a few dollars more, you can drive this nicer
model." Or "This extra coverage will protect you
against a cracked windshield."
You'd
be surprise when offering a low-, mid- or high-priced item...
many people will opt for the most expensive one. I believe
it's programmed in our wiring that the more expensive—the
better. Or maybe we believe buying the most expensive item
will make us feel we belong with those who have expensive
tastes, or that it raises our status.
3)
Exclusives. Let your customers know this add-on product
or program is exclusively for those who already earn a high
income. Or for those who are fast approaching there.
Exclusivity
is win-win because people on top want only what's designed
for them. And people in the mid and lower levels usually want
to mirror what those on top are buying.
Suggest
that your exclusive package is designed for CEOs and top-level
management. Not junior employees. But if they want to know
what their superiors know, then they should get this top-level
package immediately.
4)
Combos. You see this a great deal in the health and wellness
industry. They offer one, three or six bottles of their special
supplements harvested from a rare medicinal plant in the remote
island jungles of aboriginal headhunters.
Similar
to an upgrade offer, but with a single item bundled into various
valued-added packages. (The three-pack, six-pack, or twelve-pack.)
A dozen donuts costs less than buying 12 individual donuts.
5)
The post-sale discount. This is similar to the add-on
but with one extra twist. The add-on item is discounted in
appreciation for buying the main product. And in most cases,
this item carries a lower retail price than the one just purchased.
If
someone purchased your pool cleaning service, you can upsell
the chemicals at 30% off. Your customer saves money and an
extra trip to the store. This extra value further validates
your pool cleaning company as the only one to clean your pool.
There
are huge benefits to upselling. Your customer gets to own
and use more of your products or services. A professional
relationship develops making it difficult for competitors
to move in. And your customer sees you as the good guy looking
after their highest interest.
Warm
Regards,
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