You’ve spent time, energy and money attracting a prospect, and getting the opportunity to measure and give them a quote. Doesn’t it make sense to maximize your profits with each “at bat?” I’ve been working with floor dealers since 2007, and I’ve found that very few do anything more than simply measure the areas the customer wants replaced, then give them a quote. This is a gigantic missed opportunity. Statistically, the likelihood of selling to a new prospect is 5%-20%, while the likelihood of selling to an existing customer is 60%-70% (Marketing Metrics). So, if you’re in front of a customer who is already going spend money with you, why not politely give them the opportunity to spend even more money? McDonald’s does this millions of times every day with their phrase, “do you want fries with that?” It’s a low-pressure, easy way to invite people to spend more with you.
Are you a trusted advisor?
To most effectively upsell you must first gain your customer’s trust. This means creating differentiation and positioning you and your sales team as trusted advisors. This begins with your marketing, and is continued with your sales system. A powerful way to begin the process of building trust and creating differentiation in your marketing is to use testimonials. This includes online reviews, but also written and video testimonials on your website, social media, and anywhere else you’re marketing, both online and offline.
Continue the trust-building process with your sales system. Sit down with your customer, ask questions and write down the answers. Educate them on your guarantees and warranties. Use testimonials during your sales process. Dress professionally. When visiting the customer’s home, call a few minutes before arriving, wear shoe covers, and (with their permission) give their dog a treat.
Measure and inspect all rooms
When appropriate, get permission to measure and inspect all the areas of their home, even the areas they are not replacing. Let them know that you want to give them recommendations on getting the longest life out of their flooring, even the areas you’re not replacing.
As you go from room to room, you’re looking for two kinds of upsell opportunities: 1) things which you sell, and 2) things your referral partners sell. For example, let’s say you’re installing hardwood throughout the high traffic areas of Cathy Consumer’s home, and carpeting in her bedrooms. During your initial consultation you found out that the new floors are part of a larger remodeling project which will include a bath remodel, window treatments, and painting. Along with the quote for hardwood and carpeting, you could include quotes for:
- Upgraded carpet pad
- Area rugs for the living and dining areas
- Window treatments (because you sell those)
- A new vacuum
- Wood floor cleaning kit
When offering additional products, say something like, “Mrs. Consumer, here is your quote for the hardwood and carpeting we discussed. You’ll see that I’ve also included quotes for X,Y, and Z products. Which of these would you like to add to your order?”
You can also refer her to the bath remodeling and painting contractors with whom you have a referral relationship. As a group, contractors have a terrible reputation with consumers. If you refer Cathy Consumer to contractors she can trust, you’ll be her hero. You’re also strengthening your referral relationships with those contractors.
Let’s say your average ticket is $3,000. If you look for ways to add 30% in upsell suggestions, and half of your customers buy the upsell, you’ll increase your total revenue by 15%. If you’re currently doing $2 Million annually, you’ll bump that to $2.3 Million without spending another dime in advertising.
To Tons Of Customers!
Jim Augustus Armstrong is The “Coach”
Jim Augustus Armstrong is the President of Flooring Success Systems, a program that equips dealers to double their profits, cut their work hours in half and beat the boxes! Many dealers have totally transformed their businesses and their lives for the better after joining Flooring Success Systems.
See what real, live dealers are saying!