Your customer has said that they will buy your product or service. The sales trainers will tell you that now is the time to shut up and get out the pen or credit card machine. Too many sales people talk their way into, through and out the other side of a sale. But, there is another opportunity. Once somebody has given you their trust and has convinced themselves it is okay to give you money – that is the moment you are able to sell him more.
But, when somebody buys a shirt, your upsell should be a tie and not the whole suit.
The time-tested 60×60 rule says that your customers will buy an upsell 60 percent of the time to a maximum of 60% of the original purchase price. Any upsell you offer must be congruent with the original purchase.
If you don’t use up-selling in your business, you are missing a quick way to boost profits (“would you like fries with that?”).
The paradox of choice
The more choice you offer, the less people will buy. If you doubt this, read this scholarly article written by 2 researchers at Stanford and Columbia. When Choice is Demotivating: Can One Desire Too Much of a Good. http://faculty.washington.edu/jdb/345/345%20Articles/Iyengar%20%26%20Lepper%20(2000).pdf.
Researchers set up a jam-tasting stall in a posh supermarket in California. Sometimes they offered six varieties of jam, at other times 24. Jam tasters were then offered a voucher to buy jam at a discount.
While more choice attracted more customers to look, very few of them actually bought jam. The display that offered less choice made many more sales — in fact, only 3 per cent of jam tasters at the 24-flavour stand used their discount voucher, versus 30 per cent at the six-flavour stand.
If you have a ton of products, invest in building better filters that help people make the choice. Need more? Watch the great TED talk http://www.ted.com/talks/barry_schwartz_on_the_paradox_of_choice on the topic.