OPINION: This strategy is particularly helpful for many types of retail businesses. However, it can be used in non-retail businesses also.
It’s a simple way to increase your sales and profits fast.
Here’s how it works.
Every time one of your customers has agreed to make a purchase of one or more of the products in your retail business do this.
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1. Acknowledge that sale
“Thanks for that. I will write this up for you in a minute, or ring that up for you in a moment.”
2. Give your customer the opportunity to buy something else at an attractive price at the same time
If you give every single client who has just agreed to make a purchase the opportunity to buy something else, preferably something that is related, somewhere between 10 per cent and 50 per cent of these people will agree to buy something else if it’s an attractive enough offer.
Here are some examples to get you thinking.
Shoe shop example
Let’s imagine right now you have a retail shoe business. A client has just agreed to spend money on one, or two, or three, or four pairs of shoes.
1.You acknowledge the sale
“That’s fantastic. I know you will be delighted with these shoes.”
2. You then you introduce the special offer
A very pleasant, low-key way to introduce any add-on sale is to use a couple of sentences like this.
You: “Hi thanks for your business today, by the way we have an unadvertised special offer for anybody that spends more than $100 on shoes. Can I tell you about this special offer?
Customer: “Sure. How does that work?”
You then give your customer the opportunity to spend money on something else. And you package the offer, so it is an attractive one that is easy to say “yes” to.
You: “Well here’s the deal. For anybody that spends more than $100 today on shoes like you, we have this remarkable little shoe cleaning brush or sponge. All you do is you brush your shoes and in about three or four seconds it instantly shines them. It gives a little wax coating and it works on any colour shoes.
“This is great to have in your car, at home and even in your purse. It means you can have great looking shoes at any time in a few seconds. They are very, very popular and we sell hundreds of these every month.
“They normally sell for $15 each. However, for any client that spends $100 or more on shoes today, you can actually get two of these magic shoe sponges for only $20. Is that of interest?”
Customer: “Well that sounds quite good, yes.”
The key with any add-on offer or add-on sale is to ensure that you make a profit on it.
So let’s just say (hypothetically) these little shoe sponges sell for $15 each. And let’s imagine you buy them in for $5 cost each.
You’ve got a profit margin of $10 on each one. However, if you are then selling say two for $20 you are then making a $10 profit on that add-on sale.
Let’s just imagine that only 10 people in an entire week take advantage of this little add-on sale.
So you’ve got 10 people that are buying your two little magic shoe sponges, you’ve got a profit of $100 extra in your shoe business.
$100 a week is $5000 extra profit every single year. That’s enough to pay for a nice family holiday.
Just by asking that very simple question:
“Can I show you this special little unadvertised offer we have today, for every person that spends more than x dollars?”
And that’s quite a nice way to introduce a special offer or add-on sale in any retail environment.
Just phrase the question so the person with the purchase they’ve just made instantly qualifies for the special offer.
Paint shop example
Perhaps you have a paint shop. Someone comes in and spends $100 on paint. You say same thing again.
“By the way we’ve got a special unadvertised offer today for anyone that spends more than $100 on paint, can I tell you about it?”
Customer: “Sure, what are you doing?”
You: “We have a great painting survival kit we’ve put together. It’s got a cutting in brush for tricky corners, it’s got a clean up pad to mop up any spills that you have, it’s got a knife to cut masking tape and roll of masking tape etc.
“This normally retails for around $25. It’s been very popular, but for anybody that spends more than $100 on paint today, they can have one or more of these painting survival kits for only $15 each. Would you like one?
Customer: “Yes, that’s a good offer.”
Again you just make sure this $15 paint kit has cost you less than $15 to actually buy.
Some good news about add-on sales
One of the exciting things about “add-on‟ sales is that sometimes huge numbers of people will take up the offer, particularly if you make the add-on offer very relevant to what they’ve just bought.
Appliance shop example
Perhaps you have a kitchen appliance shop and a customer has just bought some expensive cookware. You could offer a really popular best-selling cookbook.
It might retail for $40, so you offer it for $30. But it might have only cost you $15.
So, you are making an extra $15 profit on every one of those cook book add-on sales.
The real key with this first strategy, which only takes you just a couple of minutes to set up, is that you must offer it to every customer that has agreed to buy something.
And a certain percentage of these customers will agree to take the add-on sale. If you use the words I’ve just given you, it is very easy to talk to each customer about the add-on sale.
Introduce it as an unadvertised special offer or special promotion for clients who spend more than x dollars today on this type of product or service.
Your clients will appreciate what you are doing for them and a large number will take advantage of it.
Remember this key point
Clients are never easier to sell additional products to then at the point they’ve already agreed to give you money.
Huge numbers of retailers miss out on this opportunity, and they throw away hundreds or thousands of dollars of extra profits every month.
Put together an add-on opportunity for every single one of your retail customers to purchase additional products or a product from you at an attractive price once they have agreed to buy something.
Only mention this offer after they have already agreed to spend money (you don’t mention it at all before they have agreed to spend money).
You will find this one strategy alone will put hundreds, or in some cases thousands, of dollars of extra profits into your business every single month.
Graham McGregor is a marketing advisor. You can get his free marketing guide The Plan B Sales Solution at www.simplemarketinganswers.com