If your sales team is having trouble selling to prospects, they could probably boost sales by shifting the focus to a different model. Let’s break down the difference between upselling, cross-selling, and down-selling and how you can use them to communicate value to customers.
Do you remember back in the late 90’s early 2000’s when you could “supersize” your McDonald’s order?
You probably still remember being in the drive-thru line and ordering your standard Big Mac or nuggets meal and when the person at the cash register asking, “would you like to supersize your meal?” Most people said yes to that add on of extra large fries and drink which made it a huge hit!
While McDonald’s has phased out the supersize concept in 2004, they still offer an add-on that’s a little more elusive to your order by asking, “will that be all?”
We use this example a lot in our Build a Better Business Masterclass and most people immediately get the reference. But when it comes to their own version of supersize they’re a little slower to realize it.
So Why is Upselling So Important?
Selling techniques like upselling, cross and add on selling as well as down selling can help boost the average number of customers and higher profits.
It can also help persuade price conscious customers to purchase from your company by focusing on the value of the products, and taking their focus off of price.
How to Up Sell Your Products
Do you have a basic and deluxe version of a particular product? If so, upselling works by selling your customer a more expensive version of the product they’re looking at, based on its benefits. When upselling, it’s important to explain how the more expensive model will better address their long term needs.
If you don’t have a basic or deluxe version of your products, think of services or warranties that you can add on to your product to provide that option. For example, if you sell kettles and you have only one standard product, consider having a standard product and then a deluxe product that comes with extended warranty.
Here are some useful hints and tips on up selling:
- Clearly spell out the BENEFITS of the more expensive option.
- Put the price into perspective – “Sure it might be a little more now, but in the long run…”
- Keep your options open… don’t oversell the dearer product as someone may be on a very tight budget.
How to Cross or Add On Sell Your Products
A technique that is successfully used by many large companies (see McDonald’s above). This technique can be very effective when selling products or services that are used in conjunction with others.
A good example of this would be selling your customers a watering system when they buy a quantity of lawn seed. Or try buying a suit without the sales assistant offering you to try a vast array of ties.
You can also cross sell associated products or services on a commission basis with another company.
Here are some useful hints and tips on cross selling and add on selling:
- Always offer more than the customer is initially looking for.
- Offer a package deal if they buy something else as well.
- Don’t over pressure people, after all you want them to come back.
How to Down Sell Your Product
This seems a little counterintuitive but can be really effective when your customer can’t afford a more expensive item.
Show them the highest priced item first and then the one just a little more expensive than they’d planned seems extremely cheap. Rather than attempting to only sell them a higher-priced item, and as a result losing the sale altogether, you simply sell them a similar product that fits just above their budget.
Here are some useful hints and tips on down selling:
- Wait until you are absolutely sure they can’t afford the premium product, you just might sell the most expensive item each time.
- Make it sound as though there is little difference between the two products anyway.
- If you haven’t got a cheaper version, sell them something else.
As you can see, there are many options for businesses to boost their average dollar sales. This is particularly useful if you or your sales team is having trouble selling to prospects or are losing prospects on a concerning basis.
Ultimately, work out what their customers are actually looking for when they ask for the price, and what’s most important to them in their buying decision.
If it seems like this isn’t a sales strategy that you can implement in your business, you may be overlooking what your business can truly offer. Schedule a complimentary business strategy session with us. This is a 2-hour deep dive into your business to uncover areas that you can market better to customers.
