Are your business offers leaving money on the table?
Last month, I was in the market for a new SUV. When I went to the car dealership, I selected what I really wanted and just prior to making the purchase, I was made an offer to upgrade to a service, a valet service for repairs and maintenance.
Every time I need to have routine maintenance and service done on the vehicle, a driver from the dealership will come to my house with a loaner vehicle, drop it off, take my vehicle in, have the service and repairs done, and then return my SUV to my home.
So I won’t have to waste time at a dealership, sitting around drinking bad coffee, waiting for repairs to be done.
Instead, I can be doing something more productive with my time, which I value far more than the cost of this upgrade to the private valet service.
Many business owners fail to make upsell offers or cross-sell offers of products or services to their customers. And you’re leaving money on the table if you don’t make these offers.
Let’s say that 20% of your customers accept the upsell or cross-sell that you make to them.
Now, run the profit numbers on that and see what a difference it will make to your bottom line.
If the economy is down and you’re struggling, it may be the difference between staying in business or closing up shop.
Of course, when the economy is booming, it’s a gravy train because you’ll have a higher conversion rate when your customers are willing to spend more.
Now, it’s important to make sure that your upsell or cross-sell is related to the underlying base offer. If you’re trying to upsell or cross-sell something totally unrelated, it’s not a natural fit.
Then your conversion rates are going to plummet because it’s incongruent with the desires that induce the customer to come to you in the first place.
Don’t wait for customers to come to you and ask, “What else do you have?” Chances are that question will not be asked. And this means your business will not be as profitable as it could be.
So take a look and see what you have as potential supplemental offers.
Now, what if you don’t have any other options?
For example, take a look at what’s out there in the market and see if there’s something that you can sell from elsewhere on an affiliate/referral basis to a non-competing business. Make a deal with this non-competitor to earn a commission off of each referred sale or to get paid per referral whether or not a sale is made.