UpSell and CrossSell

Are you familiar with upselling and cross-selling?

When you go to MacDonald’s and the person behind the counter asks if you like your meal supersized, that is upselling.  When that same person than asks if you like an apple pie to go with your supersized meal, that is cross selling.

Upselling means offering a higher grade or quality or size of the item that the customer may be interested in, at the point when the customer is ready to buy.

Cross-selling means offering other products or services which complement the item the customer is interested in, at the point when the customer is ready to buy.

Now here is what most business owners don’t realize. 34% of prospects will buy additional products or services at the time of their original purchase… if they asked to do so!

Most businesses never ask them and they lose out on this lucrative opportunity to dramatically increase their revenue.

Let me show you a brilliant example of this…

A restaurant that was experiencing reduced revenue, analyzed their profit margins on every one of their offerings. They determined their highest profit margins offers were wine, appetizers, and desserts. They then literally doubled their sales on all 3 of these by training the staff to offer them to every one of their patrons.

For example, they instructed their staff to bring in appetizer and one cart for each table, before the patrons ordered, and offered free individual samples. Then the staff repeated the same process at the end of each patron’s meal by bringing in the dessert card around.

By giving a free example of each dessert to everyone at the table, is a way to entice patrons to order one of them.

The taste and reciprocity instantly doubled their appetizer, wine and dessert sale.

But they didn’t stop there. The restaurant dramatically increased its total order revenue by implementing an initial Order Upsell Strategy with the wait-staff.

They trained the staff to describe the more expensive entrees on the menu and give the patron’s their personal recommendation. Most patrons have a tendency to go with the staff’s recommendations.

This has easily increase their total entree revenue by 15%.  Good upselling and cross-selling works like that. It makes sense. It’s natural. And everyone walks away a winner.

A lesson that this example teaches us, is that you have to take the steps and make the offer.

The philosophy behind upselling and cross-selling is simple. Your present customers trust you enough to enter into a buying relationship with you. You already gained their trust and now you have the opportunity to present them another level of products or services that you create, to offer to them and that they can take advantage of.

There are 3 questions you need to ask to make this work:

  1. What else do my clients want, if they accept my initial offer?
  2. What can I offer them right now?
  3. What can I find to offer them that my business doesn’t have, but could find from another business?

Remember that 34% of prospects will take advantage of your offer if they are asked to do so.

But since we want to be extremely careful in our estimates, lets be ultra conservative and lets say you just get 5% increase of your revenues. 5% is believable and it is certainly achievable.


In this example we have a company with a million dollars Annual Revenue, a 20% Net Profit Margin and a 50% Gross Profit Margin.

If you make an additional sale, you already have covered the rent, utilities, salaries, insurance etc. Therefor you can measure the increased sales by Gross Profit Margins. You may have to pay commissions and hard costs, but you are left with a higher percentage.

So, if you implement your upsell and cross sell as a strategy and bring in a additional 5%, you will increase your revenue by $50.000. And since your Gross Profit Margins is 50%, you put $25000 in your pocket.

As you can see from our restaurant example there is typically no cost involved when implementing an upsell or cross-sell strategy. This is an excellent way for any business to immediately increase both the revenue and the profits.

May your business be as successful as a woman’s ability to be a Super Woman!


The Dutch Motivator

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If you have any questions, you can message me personally at Baudina@SuccessWithoutBS.com

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