It does not matter whether you run a brick and mortar business such as an appliance store, or an online business that sells baked goods, upselling is a great technique that has been around for decades that adds revenue to your business.
Upselling is the practice by which when you offer to the customer something else on top of what they are already buying. Chances are you have experienced upselling at some point in your life and if you have hit McDonald’s, Burger King, Wendy’s or any one of the many fast food restaurants in the world then you have definitely been exposed to it.
Picture this. You are going through the drive thru of your favorite burger place and you order a burger, fries and a drink. Then the person on the other end says, “would you like to add an apple to that order?” or “Would you like to make that a large for only twenty cents more?” That my friend is upselling!
It is the process by which the business can get a few extra pennies (or dollars) out of customers that are already buying from them. The customer is already there and what a better way to maximize your profit then to sell more of your product or service to them.
Here are a couple of ideas you can use today in your business to generate some extra revenue.
As listed above offer the customer a larger size of what they are ordering for only a few pennies more. This works great in restaurants. If you run an online business before they checkout offer an additional complimentary product for a reduced cost. For example lets say they order a lamp, you could offer them energy efficient bulbs at a reduced cost. A cost they normally would not get had they just ordered the bulbs.
A friend of mine runs a home renovation business. When business is slow he asks customers if they would like to add on a room to be painted for ½ the price of what he would normally charge. So for instance if he charges $250 to paint a 12×12 room, he will say since I am doing “this job” if you have a room to be painted I can do it for $125. These are just hypothetical numbers of course. He can do this because the cost for his travel, gas etc., is will be less since he is already there working at that particular place.
Whatever you are in business for you can definitely implement an upselling strategy to maximize your profits.
About the Author:
Mr. Tucker is a regular contributor on Bukisa, an online community where you earn residual income by sharing your knowledge. Do not forget you can use this article on your own website or blog by simply copying and pasting the code from the “Syndicate this Article” section located on the right.