Debra Templar: Retail Check ups, Tune Ups & Makeovers....It’s in the bag!

Bumps, Up-sells, Cross-sells and Down-sells

What is a

BUMP?

On every sale you have the opportunity to dramatically increase your margins with a simple “bump” or “upsell”

Bumps are offers made at the point of sale by offering a simple suggestion.

9 Simple Ways to Create a Bump

2. Offer instructions on how to use your product on video, cd, dvd or a manual.

eg. An instructional video when selling a lawnmower.

3. Offer additional tools to make your product or service easier, faster + simpler.

eg. A hands-free car adapter when selling a mobile phone

1. Unbundle your product or service + offer one of the pieces of your bundle as a bump.eg. Unbundle a training kit + offer one of the cd’s when selling the training kit.

4. Offer a low-priced complimentary product.eg. A hand shovel when selling a full-sized shovel

5. Offer an extra unit of your product or serviceeg. Two pans instead of one

6. Offer something to clean your producteg. Lens cleaner when selling sunglasses

7. Offer a “secrets of” special reporteg. Secrets of Do-It-Yourself Beauty Makeovers when selling a haircut

8. Offer a consumable producteg. A set of dvd’s when selling a dvd machine

9. Add extra shipping and handlingeg. Add a shipping + handling fee 30% above the actual cost

Upsells

The goal is to add so much value that your offer becomes irresistible. But don’t get greedy.

Are offers made to customers for larger, more expensive products and services. Upsells are the art of persuading buyers to purchase either a premium version of the same product or an additional premium package or products or services.

Upselling a Package of Products

Oil change> Total Engine Service Checkup Package

One dvd> Monthly all-you-can-view dvd continuity program

Tax Return> Comprehensive Personal Financial Analysis

Dinner> Multi-Item Coupon Sheet

Hot Tub> Premium Hot Tub

Holiday Package> Hotel Upgrade +Additional Activities

Other Ways to Offer

Upsells

Website: send buyer to up-sell webpage after they have clicked on the “Buy” link. On this page place a short sales letter upgrading them to the premium version of what you’re selling or simply selling an additional but complimentary product.

Direct mail: Put an up-sell item in a second envelope that goes inside the main envelope. This creates intrigue and separates the main offer from the upsell offer.

Every time someone buys from you, why not include a sell sheet or catalogue inside the product package that you are sending the customer?(In retail it’s called a “bag stuffer”)

Once your customer has purchased from you, put them on a scheduled follow up direct mail program. eg. 1 week after the sale, offer an additional bag, an engine cleaner the second week, a mower cover the third week etc. etc.

Cross Sells

Cross-selling is often called “back-end selling”.Usually cross-selling to your customer comes after you’ve established a relationship with them over a period of time and they have purchased 1 or several products from you.

You need to set up a cross-selling list. This will be a one-to-many list, which identifies all the products you carry that compliment (or that someone would be interested in) 1 product. Once that list is done then you move on to the next product.

If I were a pest control company, my cross-sell could be:•Tree cutting service•Lawn care + maintenance service•Landscaping service•Small home repair service•Mosquito repellant system

Down-sells

Always offer the higher-priced, “bells and whistles” version of your product or service first.

If your customer doesn’t take the bait, then present them with a better offer for a scaled down version of your product or service that keeps the same fundamental benefits of the high-priced version.

Conclusion

Bumps, Upsells, Cross-sells + Down-sells can all mean significant additional $$$ for your business. Your margins will be significantly higher on sales made using bumps, up-sells and cross-selling strategies because you didn’t have to pay any marketing costs to get the customer … they were already yours.

Always first up-sell

Then bump on the up-sell

After you’ve up-sold and bumped then you want to try and cross-sell your customer more products and services.

If they didn’t take the bait on your sales efforts, make a down-sell offer.

www.thetemplargroup.com.au www.twitter.com/DebraTemplarwww.linkedin.com/DebraTemplar

Pic Credits: http://www.istockphoto.com

One of Australia’s leading retailing experts, Debra Templar just hates bad customer service and stupid business practices. So… she’s on a mission to change them – one slideshow, presentation, book, or training session at a time:

"I don't just want to improve how we do business for the customer’s sake but also that we, as business owners, sell more stuff, make lots more profit, and love our businesses back to life!“

E: debra@thetemplargroup.com.auMobile: 0417 532383Skype: debra.templar