Don't worry if you don't know what those terms mean. That's why I'm here. And if you do know what they mean, I bet you're not using them all in your business, so consider this slapped wrists' time.
Up-selling, cross-selling, and bumping are all terms that describe different ways of extracting MORE money from a customer AFTER they've already committed to buy a basic item.
You see, it's important to understand that when people are in the mode of buying, they are highly open to suggestions to buy more! This is particularly the case when the offer is in some way related to the original purchase, AND even more so if the offer appears irresistible.
The best way of illustrating these marketing techniques for you is to refer you to McDonalds, the most ubiquitous fast food restaurant in the world. They've had plenty of time to perfect their sales process, and they sometimes manage to get all three techniques into a single transaction, which is very impressive.
Learning from The Ronald'
So let's say you order a McDonalds meal. The aim of an upsell is to get you to expand your current purchase, to spend more money, so the server might suggest that you upgrade' to the large size, the biggie', or the supersize,' for just 50 cents more. The upgrade fee seems small in comparison to the initial price, so it's a very persuasive offer. In other industries, anytime you're offered a choice of bronze, silver, or gold' options, or any named packages, that's an upsell.
Starbucks has Tall, Grande, and Venti' sizes of drinks. They've done a good job of positioning the grande' as the standard' option, which is actually an upsell from the tall'.
A common trick with naming options is to refer to the lowest price package as basic' or standard'. In other words, very plain names. Then the upsell options are named much more exciting and appealing, such as platinum' or premium'. Few people want basic, we tend to want the best.
If the value proposition is a good one, then it's relatively easy to make a powerful case for an upsell. In other words, as a customer, if you see that you're getting twice the amount of stuff' for just a 30% increase in price, then that's obviously a better deal.
Other examples of an upsell would be a faster computer than the one you initially selected, a gym membership with a personal trainer rather than just the basic' plan which only includes the use of workout equipment. It could also be a cell phone plan with more minutes than you originally planned to buy.
Back to McDonalds. The employee then says to you, would you like fries with that? That's the cross-sell. By the way, when they ask me that, my natural instinct is to blurt out something like, do I look like I have some disability that would prevent me from asking for fries if I wanted fries? But I don't say that, I hold myself back
So the question, would you like fries with that' is a cross-sell. They're asking if we'd like to ADD another item to our purchase.
A cross-sell item is almost always at a lower price point than the original item, and that's deliberate. Why? The decision should seem easy.
Another example of a cross-sell is when someone offers you an extended warranty to go with a new household appliance. We've all been in an electronics store and been offered the opportunity to take advantage of extended coverage or protection' at the time of purchase.
Amazon do a great job of the cross-sell. They always offer compatible items that other customers purchased. That's a cross-sell.
If the customer agrees to the cross-sell, the bump' is where they're offered a special upgrade' deal on what they've already committed to. For example, if a cross-sell is for an apple pie at McDonalds, the employee might offer another dessert for just more if you buy it now.' Or, three apple pies for just .50 more.'
Taking another example, if you had committed to, say a 2 year extended warranty on an electronics purchase, the bump would be to offer 5 years for the price of the 3 year plan or something similar.
The point is, a bump has to be perceived by the customer as an irresistible offer. They should reason to themselves, I'd be a fool to pass this up.' In a way, it's the upsell to the cross-sell, if that makes sense.
Of all sales devices, the upsell is the most well known, but very few businesses employ it. The other two, the cross-sell and the bump' rarely get a look in.
What about on eBay? Is it possible to utilize these clever techniques? The other items from this seller' box that appears below many listings are really a cross-sell opportunity. The upsell can also be achieved by pointing out the benefits of a premium version. The bump is a little more difficult, but once the customer is yours, you can offer a special deal on future purchases. Hopefully the examples in this article will trigger some further thoughts for you.
Why employ these devices? Because they take very little effort, and they can substantially increase your profit. If a company offers a 1 dollar upsell and they get 120 customers a day to agree to it, that's an extra ,200 a year! And what was the cost of offering the upsell? Zero. A few seconds of someone's time.
Coming back to the McDonalds example, ironically, despite the way their selling system has been tweaked and perfected over the years, it still falls down in one crucial (and basic) area in a BIG way.
Can you guess what it is?
One word. Employees. Even though they're trained to maximize every sale, the implementation is not consistent, as you've no doubt observed. You can't count on being asked EVERY time, can you? So the lesson there is, you can have the best sales system on the planet, but it's useless unless it's put into action consistently and reliably.
Another danger to be alert to is in overly pushy sales people. No one likes an obnoxious, forceful salesperson where you feel like you're having an arm twisted to comply' with their wishes. Remember, in that kind of situation, the value of the offer should speak for itself. If you have to do a lot of selling then it's not a good enough offer.
Lastly, be sure that when an upsell is offered, that the customer has a great experience with your company. If the employee is half-hearted, just going through the motions, and seems as though they're simply reciting a script, then few customers will respond to that.
The secret key to using all of these techniques effectively is.
To assume.
What do I mean by that?
Assume that the customer will take advantage of your offer. Be confident. Try and convey that MOST customers take the upsell, cross-sell or bump. It's the normal course of action.
Present the offer in a low key, by the way' type of fashion. Say something like, I almost forgot to mention' so the customer feels like you're doing them a favor in getting a better deal for them.
By contrast, if you make it seem like a big decision, to be thought about carefully, guess what customers will tell you? They'll have doubts and won't respond positively to the offer.
I urge you to look at ways to implement these powerful selling options in your business. If necessary, phone your customers to offer them these options, or figure out a way to interrupt the usual sales process to make these important offers. And remember that lots of relatively small amounts DO add up, and they can be surprisingly profitable.
Frequently Asked Questions
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QUESTION:
What's the best alternative to Ebay for Antiques, Collectibles, Coins, etc?
We're a consignment shop in Minneapolis, Minnesota specializing in gold, silver, antiques, & higher end collectibles. We have done great on Ebay auctions, but need a new place to sell, just like everyone else... but where?-
ANSWER:
Having been in this industry my entire life, some of the best places you can do business at for retail are to attend trade shows, advertise in Coin World Magazine, get involved with ANA, join wholesale networks Coinnet and Certified Coin Exchange. You may also want to partner with the Professional Coin Grading Service (PCGS) and the Numismatic Guarantee Corporation (NGC) with help in grading and certifying Numismatic grade coins. One of the best wholesales to do business with is Chucks Coin in California.
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QUESTION:
What do you think about the grillz epidemic?
http://www.cleveland.com/search/index.ssf?/base/cuyahoga/114405309796700.xml?ncounty_cuyahoga&coll=2Money where your mouth is?
Teens sinking their teeth into grills - mouths full of bling
Monday, April 03, 2006
Jesse Tinsley
Plain Dealer Reporter
A broad smile revealing a mouthful of pearly whites is old school for a rising bling culture sinking its teeth into a so-called grill or front.Individual gold-capped teeth, which have drifted in and out of fashion since the early 1970s, have given way to grills and fronts - removable mouthpieces made of gold, platinum or silver and sometimes studded with jewels.
The trend has been boosted in recent years by hip-hop icons such as Nelly and rappers like Paul Wall.
After Nelly's 2005 hit "Grillz," which glorifies the trend, young people all over scrambled to wrap their happy chops around a shiny grill.
Jacob Owens, a 17-year-old South High School student, snagged a diamond-studded silver grill a couple of months ago for 0.
"Everybody is getting grills," Owens said while hanging out at the food court at Tower City. He chose silver to set himself apart in a trend he calls a "hot new thing."
Owens sheds his grill to eat and at bedtime, but for the most part wears it for hours at a time to match his ear rings.
With a grill, chains and ear rings, he is a manifestation of bling - a term coined in the late 1990s for flashy, expen sive jewelry and other adorn ments.
Many of the mouthpieces - made from dental imprints - are purchased online. But they are sold at local outlets too, like Wired Up at Tower City.
Jeremy McGrew, manager at the Wired Up kiosk, said business has been booming since the release of "Grillz."
Generally, tooth imprints are made and sent to a jeweler who fashions the fronts and returns them to the client or retailer where the items were purchased.
Although people like Owens may find it cool to flash their fronts, the mouth jewelry has caught the attention and concern of the American Dental Association.
Matthew Messina, a Fairview Park dentist and ADA spokeman, said improper use and care of fronts can result in serious gum disease or cavities.
Owens' story confirms Messina's concern that teens are wearing their mouthpieces for long periods without cleaning them often enough.Messina has no problem with the aesthetic aspect of a grill, but he warns of problems down the road if they are not kept clean or if they are bonded to natural teeth.
Snap-on grills do not fit particularly well in and around the teeth, he said, allowing food and bacteria to get trapped underneath, which can cause cavities or other problems like gum disease or gum recession.
Other dangers include allergic reactions to cheaper materials used to make the grills and adverse reactions to jewelry cleaners, which can burn gums, Messina said.
"The really wealthy who have them made of high-quality precious metals, you will have less allergic reaction," Messina said. "Someone going more of a cut-rate route, where they are using lesser metals, we see a lot more metal-allergic reaction to more-base metals."
Steve Michaels, who makes grills for Midwest Goldfronts in Minneapolis, said he gets clients from as far away as Cleveland and Los Angeles.
Michaels said Midwest Goldfronts does quality work and discourages customers from attaching fronts with permanent cement, which dentists say can cause tooth damage and cost more money to repair.
Messina said some vendors may be unaware that in some states - Ohio included - taking an impression of someone's mouth is considered dentistry, which requires a license.
That did not seem to concern a group of four or five teens strolling the corridors of Tower City on a recent weekday. They all smiled - revealing their bling.
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ANSWER:
i got one tops and bottoms its been out for a while bling bling
u wana see it
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QUESTION:
Econ Paper?
is this good for an econ paper about richard sears?Richard Sears was born on December 7, 1863 in Stewartville, Minnesota. He started working at a young age, due to his father’s failed stock-farm undertaking. After studying telegraphy, Sears got a job working at the Minneapolis and St. Louis Railroad, and later became a station agent. While working his job, he saw many shipments come through that hadn’t been asked for. This was a scam that was becoming more and more popular. Wholesalers would ship their already high-priced products to potential retailers who hadn’t ordered them. When they refused to buy them, the wholesaler would offer a lower price to the retailer, telling them that it would cost them that money to ship them back anyways. Thinking they were getting a bargain, the retailer would purchase the goods.
In 1886, when Sears was 23, a retailer refused to buy gold watches from a wholesaler, and Sears jumped at the opportunity. He attained permission to sell the watches, giving the wholesaler profits over . He had no trouble selling the watches to fellow agents, who could easily sell them to travelers. Sears earned ,000 after just six months, and became very confident. He moved to Minneapolis, Minnesota and started the R.W. Sears Watch Company. He made successful promotional advertisements, focusing mainly on appealing to rural customers. Sears proved to be a natural businessman.
Next, Sears moved his business to Chicago, Illinois. In addition, he hired his first employee, Alvah Curtis Roebuck, a watch repairman.
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ANSWER:
I'm a major English nerd, so please forgive my pickiness
Haha.The first thing I noticed is your introduction. Try to make your first sentence (or even a very short first paragraph) more of an "interest-getter". This means starting out with an attention-grabbing statement that will get your reader into your paper from the start. Beginning with "Richard Sears was born on..." isn't bad, it just doesn't grab the reader's attention. If you can begin by showing your reader WHY they should read this, what benefits they will reap from taking time out of their day to consider your paper, the paper will automatically look and sound much better.
One thing you did a marvalous job on, though, is your use of varying sentence structures. None of your sentences are cookie-cutter copies of eachother. It keeps your interest through the paper!
In your third paragraph, you begin the first sentence with "next" and the second with "in addition." Perhaps you could try to either combine those two sentences, or create a new beginning for one of them. Suggestion: "Sears next moved his business to Chicago, Illinois where he hired his first employee, Alvah Curtis Roebuck, a watch repairman."
Now, to qualify everything I have just said: Your essay is good. You sound knowledgable of the subject, and you have an excellent style of writing. The above points are merely suggestions, but certainly not necessary to turn in a good paper
Good luck!
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