Small Business – Sales – Add On Sales

October 21st, 2009 Posted in Sales Principles, Your Business
The customer has what they came for, why should I try and sell them something else? A
question I have come across time and time again over the years. I guess to answer that
question it is more cost effective for any business to sell more than one product at any
one time as the business only has to pay for the one sales process. If done correctly you
may be helping your customer too, they may not have realised you sold other items to
accompany the product / service they just purchased (you’ve saved them time and effort
because they wont need to make a separate trip for that additional item).
Add on sales are a great way for your business to get more dollars from your customer,
one great selling technique is to introduce a product / service that is within the price range
of the customer then suggest complimentary services to enhance the product / service
experience, the more you can do this the more the customer is likely to pay in the end, let
me give you an example:
Customer walks into a store to buy a baby buggy, they pay $899 for the buggy, but they
have done their home work and they know they will need a rain cover ($40.00) but it is
coming into summer they will need a sun shade ($40.00), it has been suggested they may
need a nappy bag, the buggy has one specific for the task ($80.00). to help regulate the
babies temperature they recommend a sheep skin cover ($80.00) and because the baby
will need to be in cradle initially you may want to think about a fitting so the cradle can
attach to the buggy ($60.00).
In this example the buyers had in their mind to spend $899.00 but ended up spending
$1199.00 an extra $300 or 33% more. If you asked the same couple wold they have set
out to pay $1200 on a baby buggy, the answer would more often than not be no, but will
the couple use all the additional products, absolutely.

That’s what they came for, why should I try and push them to buy more, I might upset them?  A question I have come across time and time again over the years.  I guess to answer that question it is more cost effective for any business to sell more than one product / service at any one time as the business only has to pay for the one sales process.  If done correctly you may be helping the customer too, they may not have realised you sold other items to accompany the product / service they just purchased (you’ve saved them time and effort because they wont need to make a separate trip for the additional items).

Add on sales are a great way for your business to get more dollars from your customer; one great selling technique is to introduce a product that meets their needs at a price they find acceptable then suggest complimentary products or services to enhance the the original product experience, the more you can do this the more the customer is likely to pay in the end, let me give you an example.

Customer walks into a store to buy a baby buggy, they pay $899 for one of the better buggies, but they never thought

It even comes with racing stripes!!

It even comes with racing stripes!!

about what they would do if it rained, after this was brought to their attention they decided to buy a rain cover ($40.00) recommended by the sales assistant; but coming into summer they will need a sun shade ($40.00); it has been suggested a nappy bag would be a great idea when you are traveling anywhere, the one suggested was designed for the buggy and was specific to the task ($120.00).  To help regulate the baby’s temperature it may require a sheep skin blanket ($80.00) and because the baby will need to be transported in a tiny car seat there is an attachment for that too so you can fit it to the frame of the buggy ($80.00).

In this example the buyers had in their mind to spend $899.00 but ended up spending $1259.00 an extra $360 or 28.5% more.  If you asked the same couple would they have set out to pay $1200 on a baby buggy there would be a very good chance they would have said no, but will the couple use all the additional products, absolutely.

When Should Add on Sales be Introduced?

Every business owner / sales person should be thinking about add on sales (or adding value) the minute they engage in a conversation with the customer.  If the sales process is done well, you will have identified what the customer needs (the central product /service or the foundations of the sale) but there is nothing wrong with then finding out what else the customer wants and if you can fulfill all these at the same time  the customer wins because they have the ultimate solution and you win because you have more dollars in the till.

Let me give you a couple of examples:

Sports Clothing – customer comes in and is looking for a T shirt, sales assistant helps them identify colour, style and size and takes them to the changing rooms to try them on, the sales assistant has one of two choices at this point, leave them trying on T shirts or offer them a couple of styles of shorts that compliment the T shirts or maybe a sweatshirt in the same range and get the customer to try all of them on at the same time, let the range sell itself, compliment the customer on how it looks on them and wella the sale is done.

Web Site Design – Customer is looking for a web site for the company, the designer can identify the size of the site, give a price and do the job or they can recommend the type of site required and then offer a whole host of additional features, effects etc giving the customer the choice to pick and choose.  The customer may purchase some or all of the additional features but if they don’t the process has allowed them to understand what else they can do in the future!!

Add on sales are a great way for a business to get more dollars per sale or even just to let the customer know what else you business has to offer.

If you feel you may need help in this area please contact me, otherwise please leave you comments below, thanks.

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