Lessons in Up Selling

If you want to “up sell,” then introduce less expensive options at the same time you offer your best products. You will be surprised to discover that your clients still purchase the more expensive goods.

Imagine you were offered a new computer for your business at the competitive price of $695 that included a three-year onsite warranty. If something happens to your business computer, a technician will come to you over the next three years at no charge. This seems like a great deal for a businessperson. Then the salesman casually mentions that you can opt out of the warranty to save $140 and have a one-year warranty, but you would be without your computer for a week or two while it is being repaired. What would you do?

Many people, when presented with the option in this manner, will not opt out of the warranty. However, if the computer had been offered for $555 and at the cash register and later presented a $140 upgrade option for the extended warranty, very few people will buy. In other words, the exact same offer is being made. But in the first situation, it is appealing because the value is included in the price. In the second option, the client must pay extra for the value.

The lesson for salespeople to learn is that the way to up sell is not to offer options as an alternative to the base price. Instead, include them in your base price and allow your clients to downgrade some features if they want to save money. When you offer the product your clients want while providing alternatives to save them money, they will shop around less and usually buy the better products at a fair price. If you want to “up sell,” make the best products your standard offer and allow clients to downgrade to save money.

For window salespeople it means getting away from the trite “good, better, best” philosophy of the 1980s. Lead with your best products first. The reason people buy the Mercedes C-Series and BMW 300-Series is not because those are the cars of choice. They are the entry level cars for people who can’t afford the E-Series and 500-Series. Sell the power of your brand and “best” products first. You’ll sell more of your “good” and “better” products as a result.

 

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  1. This is a great reminder to look at the sale from the other side of the coin. I get caught up in the competitive bidding process sometimes that I forget what we have built our company and sales on: quality and service. Thanks and keep the articles coming!

  2. I am the guy who turns down the extended warranty at the cash register and that example really drove home the advantages of starting the presentation with the best product available for me… It also reminded me to make clear the valuable distinctions between the best and any other options available. ..

    Your blog was a great reminder to start with your best foot forward. Your method allows the consumer to see what they might not be getting when they buy for less. I also agree that a homeowner is more likely to select the best product after showing them what they must sacrifice in features and benefits in order to save money. It is much more difficult to move up after starting with a lowball price for a product with less features and benefits. I’ve never been a fan of bait and switch in marketing, so why do a form of it during the product presentation?

    I hope you keeep on teaching readers your good methods for professional selling…. I’ll keep reading!

  3. Your blog was a great reminder to start with your best foot forward. Your method allows the consumer to see what they won’t get when they buy for less and is more succesful than showing them what they could have if they spend more. There is a big difference. I am the guy who turns down the extended warranty at the cash register and that example really drove home your point for me…
    I hope you keeep on teaching good methods for professional selling…. I’ll keep reading – and putting your tips into play!

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