How Important Are Up-sells In Your Sales Strategy?Sales Pro Source
January 11, 2013 — 864 views
Up-selling is a technique of sales where a seller influences his customers to buy more expensive upgrades and items for a profitable sale. Up-selling involves the marketing of more profitable products or services, and also exposes the clients to options that were previously not considered. In restaurants or other similar places, up-selling is an accepted form of business.
Many firms teach the employees to up sell services and products. Incentives and bonuses are given to the successful personnel. A thorough care must be taken to train employees in this type of environment. An employee who is poorly trained can let go the incentive and bonus program and offend a loyal and regular customer. There is some trust between the employee and customer and if broken, it may be difficult to re-establish.
A usual method for successful up-sellers is to become aware of the client's budget and background, allowing themselves to better understand what a specific buyer might need.
Another method to up sell is to create fear on the durability of the product or service, particularly with expensive things like electronics, where peace of mind can be offered by extending the warranty. Up-selling also is suitable with items such as expensive leather products, where a water-proofing spray is suggested by the seller to make the product last.
Effective up-Selling Strategies
Begin your up-sell by giving a brief benefit and then add some unique details about the product which you are marketing. Take your customer's permission to describe the product or service in detail if he/she requires it and avoid sounding pushy.
Focus on the needs of the customer and not yours. Do not make a sale to the customer for something you would not buy if you were in his/her position. It is irrelevant if your needs are met or not in this purchase; what is more important is whether it suits your customer. This perspective enables you to up sell with integrity and effectiveness. Below are some proven strategies to increase your opportunities of boosting a sale:
Offer Packages or Bundles that logically go Together
This is always seen in communication and telephone services. When you purchase data, text, and voice services together, you get a ‘package price’ which happens to be more reasonable than separately purchasing the products. It is a win-win situation, that is, when you get additional services, the company also gets better business. You can do exactly the same by offering products or services in packages that logically go together. The services can be bundled to increase sales.
Offer Accessories and Peripherals at the times of sale
You must offer accessories or peripherals with products such as batteries, gift bags, warranties, or other needful stuff. Remember to offer such items to your clients during checkout. There are chances that the consumers will buy them anyway. Such small purchases might not seem a lot but will definitely add to the bottom line of your business.
Offer an Upgrade
Once your customer commits to a sale, he/she is only a short mile away to commit to a slightly bigger sale. Do not mention how much it costs, but mention that the slight difference in price can get him the added benefit. Ten dollars more does not sound a lot, but the amount mentioned on the price tag can shock the customer.