Upselling
Are you routinely offering your customers opportunities to increase purchases through buying additional products, ordering supplies or upgrading to a higher-priced product? If not, you are missing out on revenues that could be yours.
Ron Popeil (yes, the late-night informercial guy) tells how his company upsells in his book, “The Salesman of the Century.” For example, high-ticket items are advertised with a four-payment installment plan. Callers are given the opportunity to get another product at a steep discount if they make one payment instead of four. Ronco gets their money sooner, and the customer is happy that they got a bargain.
Ronco also upsells accessories. Buy the pasta maker for $160, and you’ll be offered a set of pasta shaping dies, a ravioli maker and a cookbook video for another $39.95. About half of customers take the offer, increasing the average sale from $160 to $180.
How can upselling work for you? Offer a second product at half price when the first is bought at full price. Discount shipping when multiple items are purchased. Amazon.com is doing this now--order two or more items, and shipping is free. Offer a “subscription” to regular shipments (e.g., monthly) at a discounted price.
Give a bonus when the order is for at least $X. The bonus item might be something which can not be purchased--it is only available as a bonus. Booklets, audio tapes and video tapes make good bonus items, as they are inexpensive to produce but have a high perceived value.
Upselling means customers get more of what they want at a price which is a bargain to them but profitable to you.
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