As someone’s customer, which of the two following scenarios would you rather encounter?
You visit a merchant and spot a $10 item that you want and it seems like a pretty good value at that price. As you attempt to buy it, the salesperson (who may be the owner) directs your attention to a $30 item that is only vaguely like the one you picked out… and strongly suggests you buy it… or even better, buy both since there is very little overlap in their functionality.
OR
You visit a merchant and spot a $10 item that you want and it seems like a pretty good value at that price. As you attempt to buy it, the salesperson (who may be the owner) begins to ring it up and asks if you have the accessory that doubles its usefulness… but only costs $5. You admit that you don’t have the accessory and that does seem like a good deal, but you aren’t sure you will use it enough to get your money’s worth. The salesperson has simply stood by quietly while you consider.
If you are like most people, you will be unhappy, maybe even outraged in the first scenario, and appreciative in the second.
There is a name for each of these scenarios. The name for the first scenario is ‘bait and switch’. The name for the second is ‘upsell’. You want to avoid ‘bait and switch’ in your business, but offer ‘upsell’ whenever you can.
Bait and switch tries to get you to purchase a higher-priced item instead of what you came in for. It is based on maximizing profit and convenience for the vendor at the expense of the customer.
Upsell tries to be helpful to the customer (and respectful of him/her) in a mutually profitable way. In spite of the word ‘sell’ in the name, it is really a suggestion, not a sales pitch. Think “do you want fries with that?” (It also incrementally enhances the revenue of the business.)
If the additional item costs more than the price of the original item, then it is NOT an upsell. If it doesn’t “go with”, augment, or enhance the original item, then it is NOT an upsell, either.
In my classes, I like to use the example of the suit salesman who AFTER an appropriate suit is selected THEN asks if you need a shirt, a tie, or cufflinks along with the suit. Another example is the shoe salesman who checks to see if you need socks AFTER you have selected a pair of shoes. (Sometimes they suggest shoe trees rather than socks.)
It doesn’t matter whether you offer a product or a service; whether you sell to consumers or to another business; it doesn’t matter whether your average sales item is $10 or $10,000 — nearly every business can offer an upsell to their customers/clients. If you don’t have something you can offer, you just exposed a gap in your line.
Whatever YOUR business is, there are opportunities for you to incrementally increase your sales by offering an upsell. Just make sure you don’t go overboard and turn it into a bait and switch.
Don’t have an upsell… or need help crafting your offers? Contact me and let’s see if I can help you. I promise, no bait and switch.
Tag Archives: increase sales
Use Innovation to Increase Sales
Could you use more sales? Would you like more business? Are you looking outside your industry for ideas?
In an article (http://articles.latimes.com/2010/apr/10/business/la-fi-hotel-offers10-2010apr10) in the LA Times, Hugo Martin writes about hotel chains adopting strategies from retailers in an attempt to fill the vacant rooms.
I encourage you to read the article, even if you are not in the hospitality business… in fact, especially if you are not in the hospitality business.
Too many times, I encounter “that won’t work for my business/industry” when we brainstorm ways to increase revenue or to bring in more customers. More often than not, the issue is not what will or won’t work… it is what the client is comfortable with.
Unfortunately, what the client is comfortable with is the status quo of obtaining customers and sales. He/she may be uncomfortable with the results, but often not enough to really do something different. And that’s a shame because if you keep doing what you have been doing, you will keep getting more of what you have been getting.
If you’re not comfortable with the idea, that may be just the right direction. (Sure, the idea may be unwise, so due diligence is expected… but most of the time the rejection is not because of wisdom, but comfort.) As I’ve said, you can only grow your business as fast as you can grow personally. No one grows by staying in their comfort zone.
Remember, innovation is NOT invention (creating a new thing.) It IS taking an existing idea/technique/product and finding a new way to use it. For instance, taking a retailer’s 1 cent sale and applying it to hotel rooms. Or the TV infomercial bonus (“but wait! There’s more!”) to a service offering (“not only that, but we will also provide…”).
Have you applied a technique from another industry to yours? Go ahead, crow about it… we’d love to tell you how clever you are. Or maybe you are struggling with how to do that for your business? Use the comments and tell us about it. I’ll bet someone here can help.