Tuesday, October 1, 2019

How to Increase Your Sales With Very Little Effort

Increasing your order size with every customer is one of the best ways to increase your sales without adding any extra expense.

For example, when I check into a hotel I normally ask for a better price. I am sure most people who stay in a lot of hotels do the same thing. I was in North Platte, Nebraska, checking into a hotel and out of habit, I asked for a lower price. Normally the hotel clerk asks if I have any discounts, However, this time she said, “you look a little tired, we do have a room with a jacuzzi for only $20.00 more.” I ended up taking the room. Instead of getting a $10.00 discount, I ended up paying $20.00 more! The hotel ended with more revenue.

Another example was in San Jose, California. As I was checking in I asked for my normal discount. The hotel clerk behind the counter said she had to check with the manager. She came back in about a minute and told me the manager said we can’t give any more discounts today. I said fine and paid the full price.

Here’s the interesting part. I went over to the elevator and as I was waiting another guy came in and asked the same thing. The hotel clerk gave the same response about checking with the manager. She went back into the office to check with the manager. I could see the whole office from where I was standing and THE OFFICE WAS EMPTY! She came back out and gave the same response, “the manager said we can’t give any more discounts today.”

Many retailers use this “add-on” technique when selling to their customers. Buy a suit and you end up with an extra pair of pants, plus shirts and ties.

You buy a computer and end up with software and a printer.

You go into a fast-food restaurant and you supersize the fries and drink.

I was in a diner near Phoenix, Arizona, and the waitress came over to take my order and asked, “before you order, what would you like for dessert?” Is it any wonder the restaurant dessert sales were through the roof?

Here is the psychology behind the technique.

Once a person decides, their mind works to reinforce the decision. By getting a small commitment first the buyer will start to justify the decision and it becomes easier, not harder, to add on additional items.

Why? Think about your own decision-making process. Once you decide your mind does a search, similar to a computer doing a search for additional information. Your mind is looking for ways to justify the decision you just made.

Your customer's mind works the same way. This tactic is being used on you every time you buy a car. First, the car salesperson will get you to agree on the color, then options, then an extended warranty, and before you know it you bought the car - one small piece at a time.

The last-minute add-on involves throwing in an extra request at the final moment, just when you, the per, have put down your defenses and assumes you have a deal.

To successfully use this technique, don’t rush the customer. If you are selling multiple items, sell the first one. Wait a few minutes, sell the second one. Wait a few more minutes, sell the third one, and so on. Give the customers mind a chance to justify their decision.

It is like going to the grocery store and buying a chicken. I bought the chicken - I better buy the potatoes - the salad - the rolls - the dessert - and before you know it your shopping cart if full.

This technique has several names such as upsell, add-on, cross-selling. The one thing you can be sure of, it works! 

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