After you have qualified the customer and moving towards your recommendations/ sample etc, always first offer the higher-priced, feature-packed version of your product or service. (Just so you know, rule of thumb is people will most likely spend 50% more than their original “quoted” budget.) If they don’t take the higher priced product or service, only then present them with the down-sell version - one that retains the same basic core benefits of your premium product, but at a lower price.
There’s a very good reason for offering your premium product first! According Robert Cialdini, Ph.D. in his book, Influence: The Psychology of Persuasion, people are much more likely to purchase a lower priced version of a product or service once they have been exposed to the higher priced product or service they’re interested in. When you start at the bottom and work your way up, you may get to the secondary price point, but certainly not the higher. When you start high, they most often only drop back one level, thus giving you a higher average selling price every time. (And I would expect with higher bankable dollar margins)
Dr Cialdini also states that customers that buy quantities of your high-priced product or service are also likely to buy much more of the same or similar product or service if they are offered a bulk purchase discount. Which customers might be willing to buy extra quantities at a reduced cost? Make a list! They’re likely to be your best customers.
How do we maximise all of these selling techniques? Bumps, up-sells, cross-sells and down-sells don’t have to be used separately. Here’s an exercise: First try up-selling to your customers, and then bump the up-sell. If that’s successful, you may want to try cross-selling other products or services to your customers. If they don’t commit, make a down-sell offer.
Now here’s a tip. Don’t be afraid of appearing to be too pushy - people always like to receive offers on products and services that interest them. (I must stress the key words are “interest THEM” and the value needs to be exceptional)
With your knowledge across these article on bumps, up-sells, cross-sells and down-sells, it’s time to put them into ACTION.
To Your Business Success