Make Exponential Profits With Backend Sales-part 2
Make Exponential Profits With Backend Sales-part 2
It’s odd that many companies don’t focus on building a database and taking advantage of backend sales.
There are, of course, countless examples of the value of building databases: Google, for instance, bought Youtube for $1.6 billion. It is extremely important to maintain and update your database to let your clients be aware of what special promotions you are offering and to keep them forever aware of the existence of your business. Having a good relationship with a large clientele is one of the biggest assets of any business in these consumer-oriented times.
Besides, though most companies focus on front-end sales, the backend is where the most money is to be made…..let me say that again….the backend is where the most money is made!
Your database means you can constantly market new products to your clients, allowing them to effortlessly upgrade, and expand your business further.
Backend sales are all about adding value to your clients’ purchases and persuading them that their main, front-end purchase would be much improved if supplemented by a number of backend purchases. If you market your backend good well enough, you can make a large profit even while seemingly offering the front-end product at a much cheaper price than other businesses.
For instance, let’s suppose company A purchases Toyota Camrys at $18,399 and sells them at $17,999. Company A thus loses $400 on the front-end sale. Meanwhile, other companies, which also obtain the cars at the price company A does, sell them at, say, $18,999. These companies thus technically make a profit of $600.
As people are more likely to purchase cars from company A, the others may justifiably complain that they are losing customers, and wonder whether the owners of company A were procuring cars at a lesser price.
Of course, company A, not being a charitable concern, is in fact making a profit. What company A is doing is concentrating on backend sales. Numerous extras, which would normally cost, say, $3,000 dollars are being offered with the car, for an extra price of, say, $1,400.
In this way, company makes a profit of $1,000, instead of suffering an apparent loss of $400. In addition, they can offer special discounts on finance, say 4% instead of 6%. This enables company A to build up a loyal clientele and ensure that the customers poached from other car dealerships would not be poached back by them.
You, too, can utilize backend sales and databases to make large profits.
Getting Started with Your Backend Strategy
A back end product is what you sell your after you've sold your main product.
Building a business requires acquiring new customers. However, that is expensive since marketing costs have to be raised to attract new buyers. According to a research by Fortune magazine it's easier to sell a product to an old customer than to a new one since buyers are always apprehensive in their first purchase.
An old customer trusts you and this enables him to buy other products from you. A foundation is created on whose basis you can introduce new products to the customer. This enhances their Customer Life Value and brings greater returns on your marketing investments….you DO know what the “lifetime value of your customers” is don’t you?! If not this is a very important concept, please get with someone who can help you with this, it will really open your eyes!
While determining your back end product, remember to keep it compatible with your main product. If you select an inconsistent product the customers will feel that you lack expertise and this can damage the customer's confidence in your main product also.
If you are undecided then you can always ask your customers' opinion regarding different products. Your customers will appreciate the gesture and your survey will bring you valuable information.
Conducting Surveys
If you possess a customer list then it is practical to conduct the survey by mail, email or phone. Prepare a simple survey questionnaire and mail it to your customers in self addressed envelopes. If you don't have the required customer list then get your sales clerk to conduct the survey in person with each sale. However, a one-to-one survey might not be preferable to every customer. Another great idea is to grab your webcam and make a quick video email to sent to your list (you DO create and build your email database don’t you?!). In this way you can ask in a fresh personal way!
Another way of determining your backend product is to check what your competitor is selling. If you have the same target customers then their product will work for you too.
Conclusion…
To sell your backend product successfully you must believe in it yourself. If you are ambivalent about your product it will become evident to your customer soon enough as well. Therefore, a genuine love for your product is necessary to make your business successful.
Make Exponential Profits With Backend Salespart 2 - To learn more about this author, visit Mike Saunders's Website.
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Taking the Advantage of Backend Selling
It’s odd that many companies don’t focus on building a database and taking advantage of backend sales.
There are, of course, countless examples of the value of building databases: Google, for instance, bought Youtube for $1.6 billion. It is extremely important to maintain and update your database to let your clients be aware of what special promotions you are offering and to keep them forever aware of the existence of your business. Having a good relationship with a large clientele is one of the biggest assets of any business in these consumer-oriented times.
Besides, though most companies focus on front-end sales, the backend is where the most money is to be made…..let me say that again….the backend is where the most money is made!
Your database means you can constantly market new products to your clients, allowing them to effortlessly upgrade, and expand your business further.
Backend sales are all about adding value to your clients’ purchases and persuading them that their main, front-end purchase would be much improved if supplemented by a number of backend purchases. If you market your backend good well enough, you can make a large profit even while seemingly offering the front-end product at a much cheaper price than other businesses.
For instance, let’s suppose company A purchases Toyota Camrys at $18,399 and sells them at $17,999. Company A thus loses $400 on the front-end sale. Meanwhile, other companies, which also obtain the cars at the price company A does, sell them at, say, $18,999. These companies thus technically make a profit of $600.
As people are more likely to purchase cars from company A, the others may justifiably complain that they are losing customers, and wonder whether the owners of company A were procuring cars at a lesser price.
Of course, company A, not being a charitable concern, is in fact making a profit. What company A is doing is concentrating on backend sales. Numerous extras, which would normally cost, say, $3,000 dollars are being offered with the car, for an extra price of, say, $1,400.
In this way, company makes a profit of $1,000, instead of suffering an apparent loss of $400. In addition, they can offer special discounts on finance, say 4% instead of 6%. This enables company A to build up a loyal clientele and ensure that the customers poached from other car dealerships would not be poached back by them.
You, too, can utilize backend sales and databases to make large profits.
Getting Started with Your Backend Strategy
A back end product is what you sell your after you've sold your main product.
Building a business requires acquiring new customers. However, that is expensive since marketing costs have to be raised to attract new buyers. According to a research by Fortune magazine it's easier to sell a product to an old customer than to a new one since buyers are always apprehensive in their first purchase.
An old customer trusts you and this enables him to buy other products from you. A foundation is created on whose basis you can introduce new products to the customer. This enhances their Customer Life Value and brings greater returns on your marketing investments….you DO know what the “lifetime value of your customers” is don’t you?! If not this is a very important concept, please get with someone who can help you with this, it will really open your eyes!
While determining your back end product, remember to keep it compatible with your main product. If you select an inconsistent product the customers will feel that you lack expertise and this can damage the customer's confidence in your main product also.
If you are undecided then you can always ask your customers' opinion regarding different products. Your customers will appreciate the gesture and your survey will bring you valuable information.
Conducting Surveys
If you possess a customer list then it is practical to conduct the survey by mail, email or phone. Prepare a simple survey questionnaire and mail it to your customers in self addressed envelopes. If you don't have the required customer list then get your sales clerk to conduct the survey in person with each sale. However, a one-to-one survey might not be preferable to every customer. Another great idea is to grab your webcam and make a quick video email to sent to your list (you DO create and build your email database don’t you?!). In this way you can ask in a fresh personal way!
Another way of determining your backend product is to check what your competitor is selling. If you have the same target customers then their product will work for you too.
Conclusion…
To sell your backend product successfully you must believe in it yourself. If you are ambivalent about your product it will become evident to your customer soon enough as well. Therefore, a genuine love for your product is necessary to make your business successful.
Make Exponential Profits With Backend Salespart 2 - To learn more about this author, visit Mike Saunders's Website.
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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