Upselling

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Up selling
Consiste à proposer au client une montée en gamme, c'est-à-dire un produit plus cher que celui qui était envisagé à l'origine.

40%  up sell: Do it right and you'll increase sales by as much as 40% Definition

It is what happens when you take the initiative to ask someone who has already purchased something you offer to purchase more of it, or more of something else. It’s a never-ending process.

Sales technique
Salesperson induces the customer to purchase more expensive items, upgrades, in an attempt to make a more profitable sale Up selling implies selling something that is more profitable or otherwise preferable for the seller instead of, or in addition to the original sale. A different technique is cross-selling in which a seller tries to sell something else.

Why up selling is so profitable?

Consider this example. A customer buys a car with monthly payments of $395. With that size of investment, there’s very little resistance to adding $2 to the monthly payments for upholstery protection. For you, however, that additional sale is significant, as over 48 months it adds up to a $98 sale, with a huge profit margin. Some would say that a $98 sale on a $25,000 vehicle is only a minimal increase in the overall sale. Why waste your time? My argument is that if it only takes 30 seconds to make that extra $98 sale, then you’re making more money for the company than with any other activity you do. If your salary is $20 per hour then doing the math, the 30 seconds you take to up sell costs the company about 17 cents. If it only costs the company 17 cents to make $98, that’s a huge return on investment. The fact that it’s attached to a $25,000 sale is completely irrelevant. So, up selling is one of the highest and best uses of your time.

How & when to ask?

1. Suggest the correct product
What to promote

So in order to do this effectively the first thing is to determine which are the products or services you wish to promote. It obviously makes sense to be promoting high profit items, but there can be a danger in using this as the only criteria. Unless what you are promoting is perceived as value to the customer, it's unlikely the sale will be achieved, and does little to build your customer’s loyalty or trust. It's also important to distinguish between high selling price and profitability and appropriateness to meet the customer's needs. For example up selling to a more expensive bottle of wine when it does not appeal to the customers tastes.

Product knowledge

Staff needs to fully understand each of the products and services available:

■ What are the high profit items
■ What are the component parts of any packages
■ What's not included, but may be relevant to offer to the customer ■ What are the ingredients in a dish
■ What does it taste like
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■ What are the best accompaniments to a dish
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Allow staff to experience all the products and services first hand - this will not only make them more memorable, there will be more willingness to promote if they are confident to talk about it, and it will certainly be easier to evoke emotional appeal through vivid descriptions of taste, smell, feel, if they've experienced them themselves. -------------------------------------------------

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2. Pick the right time
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Spot the opportunities
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Let them identify all the situations that lend themselves as an opportunity to up sell - not just in their own department - but across all areas. -------------------------------------------------

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■ Options on accommodation - room upgrades, special...
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