How much money does McDonald’s make selling you a burger? The answer is not much – where the profit lies is adding chips and a drink, then maybe a desert. They do this cleverly by having the “meal deals”.
“So how can you do this in your business?”
Let’s use the example of a dress shop – the profit driver in a dress shop is the change rooms. Always encourage the customer to take in a number of items (be aware of security – but that’s another discussion). Once the customer is in there, trying on items, listen to their comments and feedback – bring more items, and also remember to bring accessories. Accessories should be on display around the change room area – show the customer how to wear the items correctly, and how to add to the “look” by using appropriate accessories.
Ask yourself, “What is the customer trying to achieve? Is it for a special occasion? What can I do to make them delighted with their purchase?”
Often retailers leave money sitting on the counter because they only do half the job! Sell the customer a total solution and they will be happy and come back again and again.
I recently needed to fit new wiper blades to my vehicle – you know what it’s like when the blades scrape and bounce across the windscreen!
I popped into a local automotive store and had a varied experience. Firstly, everyone seemed so intent of stocking the shelves, (I walked past three people without any acknowledgement or offer of assistance) that I felt they really weren’t interested in me. Then, when I couldn’t find what I was looking for, I asked a young lady. I have to say she was great – she asked me what the problem was, walked me over to the section where the blades were, and on the way offered to fit them for just $3 (each) – “Sure”, I said. Saved me mucking around. She first went out to my car, and identified the correct blades. Showed me three different types, but of course recommended the most advanced, she explained the benefits of the product. The blades were fitted in a flash and I walked out very happy, with my wallet $100 lighter.
I have been completely happy with the purchase, tell everyone about it, and the “offer to fit” added $9 to the purchase – equating to a 10% increase in the value of the sale and ultimately 10% straight onto the bottom line!
In addition, another fellow was standing next to the display looking at blades also – he even came out and watched her fit them – he bought the more expensive, but opted to fit himself – he had been looking at a cheaper type. That’s a double upsell!!
So, where to from here? Think about the wants and needs of your customers (e.g. when you buy a burger, you need a drink and chips too), and work out a process to ensure that you provide the best possible customer experience, whilst ensuring the best possible customer spend – but value for money.
I ended up paying over double what I thought that I would have to pay when I purchased the wiper blades, but in the end, I am completely happy because I was offered a total solution, and it achieved the outcome that I was looking for.
Upsell and add-on selling is a key to profitability.
David McLean, the Retail Mentor – adding profit to your bottom line.