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.