Selling For Bigger Profits
Gauher Chaudhry
Copyright © By Gauher Chaudhry, All Rights Reserved
Imagine, you are selling the coolest looking cowboy boots on the
Internet and everyone is dying to buy a pair from you! At $200
a pair with a gross margin of 20%, you think you are making a
mint. You competitor is selling similar boots on their web site
for the same price, but their overall profits always seem to be
75% higher then yours. Why?
They managed to increase the average transaction of each of
their sales by hitting their customers hard with an "upsell."
When their customer is ordering their cowboy boots, your
competitor asks the customer if he/she would like to also
receive a cool cowboy hat for only $20 more. This is an example
of an upsell. Trying to get more money out of the customer at
the point of purchase.
The most common example of this technique being used are at fast
food restaurant chains. They offer to upsize your combo for an
extra 50 cents. This technique has been ingrained into
McDonalds employee heads so hard that when you order anything,
you always hear, "Would you like fries with that?"
Sometimes I wonder if McDonalds has gone to far to make sure
employees apply these concepts. I once went to McDonalds and
ordered some "fries" and the cashier replied back "Would you
like some "fries" with that?" Hmmm, I think the first order of
fries will be enough, thank you.
You should sit back and come up with a list of products or
services that you could use as upsell items. You should only
offer your upsell items at a special price, available only with
their initial order.
Not only should you upsell, you should also back-end sell!
Most marketers are successful because they apply back-end
selling into their marketing efforts. Back-end selling is when
you sell other products or services to your existing customers
after they have purchased an initial product.
It is always easier to sell products or services to your
existing customers because you have developed a relationship
with them when you sold your first product or service to them.
You will find it less expensive to sell to old customers as
compared to selling to new customers.
Your conversion ratio will be dramatically higher with existing
customers! Everytime you continue selling back-end products or
services to existing customers, you will be building a life-long
relationship. You should continually bring out new back-end
products or services to sell to existing customers. They will
keep buying and buying and buying...
You get the point. Nuff said.
Many businesses sell their front-end products (initial products)
at almost zero profit in order to generate back-end profits.
These businesses do not care even if they lose money on the
front-end products or services, they want the back-end profits!
One of the prime examples is Ken Evoy, who sells the "Make Your
Site Sell" book (http://myss.sitesell.com/coolcash.html) for
only $17 U.S. This 800-page book is worth a heck of a lot more
money, but Ken figures he will recoup his costs selling his
back-end products such as his latest ebook Make Your Knowledge
Sell (http://myks.sitesell.com/coolcash.html) at a much higher
price.
Trust me, you will find it hard to develop a profitable business
if you sell only one product. You will be spending too much
time and money trying to acquire new customers.
Integrate upselling and back-end selling in all your marketing
efforts and you will almost instantly raise your sales and
profits.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Gauher Chaudhry is editor of Cool Cash Ezine. You can subscribe by sending
an email to subscribe@freecoolcash.com with "sub-art" in the subject.
Join Gauher's two-tier affiliate program by promoting his latest book "EZ Money
With Ezines." Gauher teaches individuals how to make thousands of dollars in
the ezine publishing business!
http://www.ezmoneywithezines.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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