Bump & Upselling In Marketing
This is probably one of the most easiest, quickest and most profitable techniques that business people have at their disposal yet it is rarely used.
Let me explain what upselling is. Upselling is basically offering the customer more at the point of sale
Let me give you some simple examples of upselling in the real world.
Say you run a small website design company and you have a person on the phone ready to order a simple 3 page website which cost ?200. While you?re talking to the person you could offer them an extra website page plus 5 extra email addresses for an additional price of ?50. The normal price for this package is ?300. You tell them you are offering this because you wish to thank them for using your company and this offer is only available right now.
Let?s do some figures now?
Before you used your upselling you had 100 people purchase your 3 page site at ?200.
100 x ?200 = ?20,000 = ?5,000 Profit (25%)
Total profit = ?5,000
Now because the upselling offer only costs an extra ?10 to set-up you make the remaining ?40 in pure profit!
Let?s say 30% take your upselling offer?
70 x ?200 = ?14,000 = ?3,500 Profit (25%)
30 x ?250 = ?7,500 = ?2,700 Profit (36%)
Total profit = ?6,200
So with a simple upselling offer you could add an extra ?1,200 profit for every 100 clients you sell to! That?s an increase of 24% which was virtual effortless!
Things to remember
? Always tell the consumer why you are offering this special price and clearly & passionately explain the benefits for taking this offer.
? Tell the consumer that this is a limit offer only available right now! This will create a sense of urgency in the consumers mind.