Upselling is All About Timing
By Steve Coscia
On a recent business trip to speak at an Ohio Trade Association meeting, I drove across Pennsylvania on the turnpike. During my first rest stop, I decided to buy a cup of coffee. The woman who worked the food counter had a great sense of energy and enthusiasm. Customers were greeted with a smile and a pleasant invitation, “How may I help you?”
When it was my turn I ordered my coffee, pulled a five dollar bill out of my wallet and as I handed over the money, she asked, “Would you like a breakfast sandwich—they’re fresh?” So there I stood cash in hand, in the presence of an upbeat person who invited me to taste the food which filled the room with its enticing aroma. A positive response added $2.50 to my total.
After she handed me the coffee and breakfast sandwich, I stepped to the side to add milk to my coffee. I overheard the next transaction in which a customer ordered a coffee and sure enough, this woman made the same suggestion which resulted in another breakfast sandwich sale. This added another $2.50 to her cash register.
Being curious, I watched this counter person serve more customers. She sold an additional four breakfast sandwiches in about five minutes. Wow, I thought—that’s an additional $10.00 every five minutes which could translate into $120.00 an hour. As I walked back to my car, I remarked to myself that this woman understood how to upsell.
For many trade professionals, upselling is one of the least understood business behaviors, which can have a most dramatic impact on revenue and profitability. Counter professionals who suggest an electrical whip, disconnect or line set each time a contractor orders a three ton condensing unit supersize their orders. These numbers add up to significant revenue.
If we were to define upselling, the definition would go like this: upselling is offering a suggestion to an already receptive buyer to enhance the value of his or her purchase. The purpose of upselling is to build a mutual benefit so that both you and the customer win.
Opportunities to upsell abound in every segment of business.
Perhaps you have heard the most famous upsell in the history of business “Do you want fries with that?” Millions of additional revenue has been generated with that simple suggestion. If we were to define exactly what upselling is the definition would go like this: upselling is offering a suggestion to an already receptive buyer to enhance the value of his or her purchase.
Upselling does not include aggressive selling tactics. The purpose of upselling is to build a mutual benefit so that both you and the customer win. Upselling assumes that you have already made the sale - now don’t lose it. There exists in upselling the opportunity to lose a sale if a salesperson becomes too aggressive, upsets the buyer or does something else to break the continuity of the customer’s buying experience. Therefore, it is vital that salespeople understand the true nature of what upselling is.
As demonstrated by the woman at the rest stop, timing is an important element. Wait until the customer’s wallet is out, their guard is relaxed, and the business rapport is high. When these factors are not favorable the success of upselling is limited.
In upselling - timing is everything.
About the author:
Steve Coscia assists contractors in achieving business growth and world-class service status. He is the author of numerous books and training DVDs. Steve’s articles appear in Contracting Business and Commercial Dealer magazines. To learn more about Steve Coscia go to www.coscia.com and subscribe to his Service excellence Newsletter. You may contact Steve at 610-853-9836 or steve@coscia.com . www.coscia.com
