I remember the day I visited Moda Italia in Palo Alto to pick out a business suit. I chose a Georgio Sanetti three-button in a light khaki. Mr. A.J. Weissman was pleased to make the sale, but more importantly he pointed out the accessories that would enhance my suit.
No doubt he knew his craft…
He sold me a matching shirt, tie and socks. He did this by laying the tie and shirt beside the suit and it was simply breathtaking. The combination was irresistibly flattering. And if I didn’t make for the door, he would have sold me a pair of shoes, a belt, silk designer underwear and another suit.
The total price jumped another $75 because he took the time to suggest complementary items. Items that never entered my mind when I first walked inside Moda Italia. My original plan was to get a suit—and quickly get out. But that clearly wasn’t the case.
This is the power of upselling.
The customer has handed you her credit card. She’s in a buying mood. She’s hot for your product. This is the best time to make her another offer to increase store revenue and personal commissions. A couple of upsells each day and you could bring in a few hundred extra dollars.
You can offer variations of the upsell item. We have these in sexy red, hot pink, or business blue. And then ask if they’d like one, or all three at a group discount.
But avoid being pushy. Show your customers how they’ll benefit with the additional item(s). How they’ll generate more looks, smiles and compliments. Avoid pressure tactics that may backfire on you.
Below are five types of upsells to generate greater personal profits:
1) Add-ons. These are the most common. They could be options like chrome wheels, wood trim or leather seats for an automobile. Maybe special reports related to your flagship product. A purse or jewelry with an imported dinner gown. Or an extended warranty for your new home stereo with surround sound. And of course, the most famous add-on is, “Do you want fries with that?”
2) The upgrade. Offer your customer the option of upgrading to a gold or platinum package. Show him, for a few extra dollars a month, how he’ll get all these extra benefits. And how each benefit alone is worth so many dollars to him.
I used to shop at a tool supply store because I loved working on my classic cars. And the salesman would always ask, “Do you want the cheap one—or the good one?” Obviously, with other patrons in the store, I never wanted to reply, “The cheap one.”
Besides I took pride in my tools. I didn’t want them to snap during usage. I’ve always bought Made in the USA tools for that reason.
Car rental agents persistently try to persuade you to buy their insurance and upgrade to a larger model. They always start with, “For a few dollars more, you can drive this nicer model.” Or “This extra coverage will protect you against a cracked windshield.”
You’d be surprise when offering a low-, mid- or high-priced item… many people will opt for the most expensive one. I believe it’s programmed in our wiring that the more expensive—the better. Or maybe we believe buying the most expensive item will make us feel we belong with those who have expensive tastes, or that it raises our status.
3) Exclusives. Let your customers know this add-on product or program is exclusively for those who already earn a high income. Or for those who are fast approaching there.
Exclusivity is win-win because people on top want only what’s designed for them. And people in the mid and lower levels usually want to mirror what those on top are buying.
Suggest that your exclusive package is designed for CEOs and top-level management. Not junior employees. But if they want to know what their superiors know, then they should get this top-level package immediately.
4) Combos. You see this a great deal in the health and wellness industry. They offer one, three or six bottles of their special supplements harvested from a rare medicinal plant in the remote island jungles of aboriginal headhunters.
Similar to an upgrade offer, but with a single item bundled into various valued-added packages. (The three-pack, six-pack, or twelve-pack.) A dozen donuts costs less than buying 12 individual donuts.
5) The post-sale discount. This is similar to the add-on but with one extra twist. The add-on item is discounted in appreciation for buying the main product. And in most cases, this item carries a lower retail price than the one just purchased.
If someone purchased your pool cleaning service, you can upsell the chemicals at 30% off. Your customer saves money and an extra trip to the store. This extra value further validates your pool cleaning company as the only one to clean your pool.
There are huge benefits to upselling. Your customer gets to own and use more of your products or services. A professional relationship develops making it difficult for competitors to move in. And your customer sees you as the good guy looking after their highest interest.
Tommy Yan helps business owners and entrepreneurs make more money through direct response marketing. He publishes Tommy’s Tease weekly e-zine to inspire people to succeed in business and personal growth. Get your free subscription today at www.TommyYan.com.
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