Monday, April 2, 2007

The Art of Upselling

Why stop with the initial sale when you can make great profits from upselling? Millions of people do not realize how much money they are turning away with every sale they make. There is a huge profit potential that is perfectly honest and legitimate. Upselling is no scam. In fact many people appreciate the suggestions and are thankful to purchase the products when they can. It requires a very small additional effort from sales associates, but brings in enormous results. The classic upsell is to offer a larger discount with the purchase of an additional item. You have seen this tactic exhausted on television ads.

Sometimes they will include a free gift if you upgrade your purchase to something else. One less assuming tactic that adds very little work on an employee is to offer other items as the original order is being processed. The classic example of this is the "supersize." The extra little comment, "Would you like to supersize that," brought them almost a 25% increase in profits in the first campaign. People are very likely to say yes in this scenario because they think about the extra product they will receive rather than the minimal cost. The reality of the situation is that McDonalds makes a profit on every supersize. Regardless if your store has an equivalent to supersizing, pick something that can be offered easily to the customer as they are checking out. Also consider items that might go well together.

In retail clothing stores, these items are often things like cashmere socks that are "on sale" or perhaps mentioning one of the sales in the store. Many customers will balk at a sale and want to check it out while they are still in the store. These are known as "back end" sales and though it may seem that their profits are minimal, over the course of hundreds or even thousands of customers, it makes an incredible difference.

Possibly one of the most effective forms of upsales is using a secret weapon product or service. This commodity is one that you have developed or researched and use as a general upsale item for every customer. The more general and appealing this item is, the more profits you will make. By simply asking the customer if they would also like to pick up one of these items, is guaranteed to produce results and is a very small amount work for sales employees.

The profits to be had in organizing an upsell strategy are fantastic. There is no reason why every company should not have an upsale protocol. Consider the products you already sell and get started on the cheapest and most profitable sales strategy there is.