Upselling And Cross Selling To Increase Profit
Upselling is a bit different from the cross sell although they are very similar.
An upsell is when a sales person convinces the customer to purchase more expensive items, upgrades, or other add-ons to the existing product in an attempt to increase the profit of a sale.
“Did you want to get the bigger one, it is a better value….”
Cross selling, on the other hand, is when a seller tries to sell something else in addition to the original item, a companion item that goes well with the original purchase.
“Did you want fries with that?”
Both techniques have the same result…. more income!
One of the surest and most effective marketing strategies for a home-based direct sales business is upselling.
The idea is to add a little offer or bonus at the time of purchase to “sweeten the deal.”
Using the upsell at checkout almost always results in extra profit and it leaves both the customer and the consultant feeling good about the transaction.
Upselling And Cross Selling
The consultant who is good at upselling or cross selling does not focus on the extra money but puts an effort into finding more value for the consumer.
Upselling is not getting people to buy something extra….
It is adding value to something they already decided to buy.
Increase Sales With Business Samples Or Freebies
One way is to offer to add a related bonus product if a certain amount of merchandise is purchased.
For instance, a makeup consultant could include an inexpensive sample pack of lipstick colors for each sale of full-size powder and blush combination.
In this example, perhaps the customer had only intended to buy the powder. Now she has incentive to buy the powder and blush together so she can have fun experimenting with new lip colors.
This is the upsell with a “free” bonus.
Sales That Buy One & Get Another For Less
One of the best known upsell methods is to offer more of the same at a hugely discounted price. For instance, a candle consultant who is about to sell an expensive candle gift basket could offer another of the same at 30 percent off.
This gets the customer selling herself by thinking who else might enjoy the gift of candles. The discount just makes the additional purchase more attractive.
Upsell To A Set Or Certain Dollar Amounts
Another way to entice the customer to buy more at checkout is to offer an upgrade or a special service if a certain dollar amount is reached or to a combination set.
For instance, a distributor could create an offer of free gift wrapping for customers who purchase at least $150 worth of merchandise.
Sets that include 3-4 items should be offered when the guest selects 2 of the items in the set.
A couple of good examples of the upsell were shared on a recent Facebook post:
When a customer makes a $100 purchase, they are able to buy a customer appreciation package worth over $100 for only $34.99!Aggie Lipinski, Jordan Essentials
I always explain the value of buying “sets” of our product..it works better, last longer and will in turn save them money….for instance with our body care systems… depending on which is purchased you can save anywhere from $8.50 to $17.50!Amy Rashell Bodnar, Athena's Home Novelties
Sale Coupons for Next Time, This Time
One of the most renowned ways to get a repeat sale is to insert a discount coupon for next time. But why not allow customers to use those “next time” coupons today?
This upsell strategy relies on a customer thinking you are giving a special deal that wouldn’t ordinarily take place.
Make sure the discount coupons you give upon checkout clearly state that coupons are to be used only on a future purchase. The sales representative should point out the coupon and mention that it can be honored today if the customer happens to see anything else she would like to buy.
Simple but effective.
Upsell – Cross Sell = Happy Customers
Don’t forget to upsell (or cross-sell) at checkout to provide value. You will have happier customers, too.