Add-on Sales: An Easy Way To Increase Sales and Cash Flow

by Doug Smith, President, The Woodhaven Group

Would you like fries with that?  We have all been asked that at the drive up window.  If you said yes then you just participated in an add-on sale.

This is one of the easiest and best ways to increase sales and so many businesses do not have a strategy in place to capitalize on this  easy path to more cash flow.

Why isn’t it used more often?  Some sales people and sales managers believe that attempting to add-on may upset the prospect and kill the original sale.

My experience is that rarely occurs.  Why?  You have either just solved a real problem for your prospect or addressed a need, or fulfilled a desire.  Either way the prospect turned buyer now feels good about you, your company and your product or service.

You have persuaded them to cross an important psychological barrier and make a buying decision.  In the buyer’s mind the hard work is completed and the stress of decision-making is over.

Some tips to maximize the potential of add-on sales:

  1. Don’t attempt an add-on sale until you have a commitment on the core product or service the prospect was wanting or needing.
  2. Make sure the add-on directly relates to the product or service you sold them.  Example:  It makes sense to sell tennis balls with a new tennis racket.
  3. An add-on is still a sale so make sure you explain how the customer will benefit from this extra service.
  4. Track what the most successful conversions of add ons are when offered to a customer.  Don ‘t assume you know.  Test different add ons and let the consumer tell you which is most often preferred.
  5. Train the sales staff how and when to offer add ons.  This training should include scripting, role-playing, and recording on video.  When done correctly, an add-on is a natural extension of the existing sale.
  6. Often when executed well an add-on sale will be sold at full price resulting in increased margin.
  7. Add on sales do not always have to be sold at the point of sale.  They can be as a result of a follow-up contact when thanking the customer for making the purchase.  Internet marketers often do this on the thank you page. Some companies sell the add-on at the time of installation or delivery.  An example might be extended warranty or a maintenance contract.  You should be catching the customer at their highest point of satisfaction.   

A properly executed add-on sales strategy delivers added value for your customer.  For your company it can deliver increased sales, more cash flow, lower marketing costs and more profit.

As an owner or senior manager make sure you commit to this important business strategy.

Someone is going to make that add-on sale to your customer.  

Make sure it is your business and not your competitor.

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