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What’s the easiest sale that you can make as a business? The easiest sale you can make is to a happy customer, and you can sell them something else. Here are a couple upselling tips:
- First, you can sell your customers a new product or service. This is actually the hardest of these three different upsells to make, because you have to create or stock a new product, or provide a new service.
- Next, you can sell your customers more of what you’re already selling them. It’s the same product or service, but more of it. This expands the relationship.
- Third, you can do something that is often the easiest to do, but people are the most fearful to try. You can increase your prices.
When you’re considering these three ideas, it’s important to consider the impact on the business. For most businesses, a 15% increase in your prices allows you to lose over 40% of your customers without losing any profitability. That’s an amazing statistic. Here’s how you can begin taking advantage of this information.
[Find out if you are targeting the right customers.]
First of all, take a look at when you last contacted your customers. Next, create a plan to reach out to them and either sell them something new, or more of the same products or services. Third, run the numbers so that you can understand how much you can increase prices and how many customers you can lose and still retain profitability. Chances are, all three is going to increase your sales and drive you to higher levels of profitability.
This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.
This post contains trusted sources. All references are hyperlinked at the end of the article to take readers directly to the source.
Matt Garrett is the Founder and Chief Executive Officer of TGG. He is a regular speaker across the country on behalf of Vistage educating business owners on the need for sound financial practices, and is Vice President of the Board of Directors of FINACA. Under Matt’s leadership, TGG has received the following recognition: INC. 5000 top companies in the U.S. five years in a row; one of “San Diego’s Fastest Growing Companies” the past four years; and is among San Diego’s “Best Places to Work.”
