Up-Selling - Do you want Fries with that Burger?

"Would you like fries with that?" or "Would you like to super size your Coke today?" As annoying as those questions are sometimes, the people asking them are doing what every sales manager dreams about-- they are up-selling. Regardless of the fact that most of us find these questions to be an inevitable annoyance when ordering fast food, they really are a very common and successful selling strategy that is encouraged, if not required, in almost all sales companies, whether selling goods or services.

Up-selling and Cross-selling

An up-sell offer is for a better (or bigger) version of the same product or service being sold. A less ubiquitous attempt to up-sell than the fast food example may be buying a gym membership and being offered additional privileges for a slightly higher price such as tennis court or indoor pool time in addition to the machines and free weights use you just bought. Another example may be the offer of a color printer or scanner when ordering your brand new personal computer.

Up-selling differs from cross-selling in that the former gives you an incentive to buy a bigger and better product than the one you were originally intending, while the latter encourages you to buy a related product or service to the one you are already considering.

Cross-selling will typically take one of three forms. The first example is while servicing an account, the service provider may hear of an additional need, unrelated to the first, that the client has and offer to meet it. Another example would be to sell add-on services. For instance, when buying an appliance, the salesperson will offer to sell you insurance beyond the terms of warranty. The third kind of cross-selling may be called "selling a solution." In a situation like this, the customer buying an appliance is sold a package of both the air conditioners and installation services.

Why and When to Up-sell

Up-selling principles are intended to substantially increase the volume and value of your sales and boost revenue for your company. There are several ways a good salesperson can up-sell his product or service, the most popular of which is offering a greater quantity of product or service for a slightly higher price.

Up-selling is a hugely popular marketing and sales strategy because the cost of finding new customers and clients is often quite high for most businesses. Up-selling existing customers maximizes a business' return on those expenses. It's a fairly simple strategy that any business can utilize and then see results quickly.

Since customers are most receptive to what a salesperson has to say once they've already agreed to buy a product or service, offering an upgraded product at the right time is crucial. Timing is crucial in successful sales. Up-selling is a technique designed to get more money from the customer at the point of sale. Many salespeople are hesitant to up-sell because they fear annoying the customer and losing the sale. Studies have shown that the opposite is true. Customers who have already agreed to buy your product or service are appreciative of your thoughtfulness in offering them an added benefit or "more for their money."

Up-selling is really much easier than many other sales strategies, and even novice salespeople can experience greater sales success with this technique. Managers instruct their salespeople to present an up-sell in a casual manner, almost as an afterthought. Make that "bigger/better" offer in a conversational tone giving the buyer the impression that you're simply offering something that anyone with common sense would want.

Businesses studied have reported a 40-60% acceptance rate for their up-selling efforts—substantial numbers for so little effort. Also, the profit from the up-sold portion often exceeds the profit on the initial sale.

So, next time you're asked "Do you want fries with that?" you'll realize the employee is not just doing his job, he's doing it well.

Up-Selling - Do you want Fries with that Burger? - To learn more about this author, visit Colleen Stanley's Website.

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