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Will You Add? - The Importance Of Up Selling And Cross Selling To Increase Margins
The slight decrease in the IT dynamics at the beginning of 2000s being over, the new drivers has fueled further development of the IT branch throughout 2006 – 2007.One of the tendencies of the global impact has to deal with growing business value of the Internet as well as associated boom in e-commerce. The IT-rich enterprises have won substantial market advantage over the competitors that have not placed IT as the key element of their busines
Summary:
The best product, at the best price does not always win the order; we have all been outsold by a competitive salesperson probably offering less of a solution and sometimes even at a higher price. By selling benefits, not telling about features, the prospect will understand the pay off that your solution will deliver. Do not leave them to work it out for themselves, they might not bother!
If you can ide
Everyone has experienced a time when they had to deal with a difficult person. This is a form of adversity. Difficult people take different shapes whether they are argumentative, abusive, stubborn, angry, combative or a host of other negative emotions.The question is, how can we deal with them?In my view, angry people are screaming to be heard. They want to be valued, loved and listened to. They want to feel important but just don't know how to do it right.Here's 7 things I do when in the presence of such a person:To increase the revenue and margins of an order by selling products and services at a higher price i.e. up-selling or by selling additional products and services i.e. cross selling, we must be able to prove to the customer that there is something in it for them. We must show them increased, i.e. added value.
Value is the worth of something when compared with something else. For example, value would be a high pay back for small outlay, also discussed in terms of ROI i.e. return on investment. Pay back is the tangible return delivered by the benefits of your products and services. The greater the pay back, the greater the value to your customer and customers certainly want value.
The Value Formula:
The formula for calculating value is the benefit minus the cost of achieving or acquiring the benefit i.e. value + benefit - cost. So, it is important that we use rigorous questioning techniques to uncover as many needs as possible, for which we can offer, benefit oriented solutions. We need to be able to explain and sell benefits. The more needs we can uncover, the more benefits we can deliver, the more benefits the greater the pay back, the greater the pay back the higher the value, the higher the value, the better the chance to up sell and cross sell.
Proving Value:
Using the funnel questioning technique will uncover needs, if they are there to be uncovered. However, it is one thing to uncover the need it is another thing to prove that there is adequate pay back and value in fulfilling the needs.
Having uncovered the needs we must probe and find out as much as we can about those needs and the implications to the customer if they are not met or fulfilled. We do this by asking past, present and future questions i.e. “How did you use to do this?” (Past), “How do you do this now?” (Present) and “How do you plan to do it?” (Future).
What we are trying to establish is the difference between what the customer used to do and how he does it now. If we can establish this then the comparison between what they are presently doing and what they may be able to do based on our solution, will be easier to grasp. This is important, because the difference between them doing something and not doing it is the “value gap”. We need to find value gaps that we can attach a price to, so that we can justify the benefit in terms of added value.
Let’s take an example:-
Your support customer used to have a manual stock and inventory system. Using your database for an automated system has enabled them to increase shipments by 20% per day. With the shipments of goods totalling ?10,000 per day, the value gap i.e. system or no system, is ?2000 per day. If the system is down it would cost ?200 to ?400 in lost or delayed shipments per hour. Staying as they are or going for a support agreement that would reduce down time is the value gap opportunity. That gap is worth ?200 to ?400 per hour.
Value Added Arguments:
You should always be looking for opportunities to offer more features that will be of benefit by asking the customer to tell you areas in which they would like to see greater support or additional services. If you say “Mr Smith we would like you to upgrade to our gold support agreement, you will receive earlier notification of software upgrades” the usual response will be, we don’t need them. Far better, using reasoning and questions to manoeuvre the customer into a position where they ask or enquire about additional services, explain to you what the possible outcome would be if they did not have those additional services and then you present a value added argument, to fill the gap.
Summary:
The best product, at the best price does not always win the order; we have all been outsold by a competitive salesperson probably offering less of a solution and sometimes even at a higher price. By selling benefits, not telling about features, the prospect will understand the pay off that your solution will deliver. Do not leave them to work it out for themselves, they might not bother!
If you can iden
If you are like alot of people these days, you have probably thought about working from home at least once during your professional life. Maybe even more so on those days when everyone (primarily the boss) in the office is driving you nuts?But what if you could work from home? Do you think you could actually do it? Do you think it would be easier than working in an office full of people?Before you up and quit your day job, you need to look at many different things that can and will affect your ability to work from home.it i.e. value + benefit - cost. So, it is important that we use rigorous questioning techniques to uncover as many needs as possible, for which we can offer, benefit oriented solutions. We need to be able to explain and sell benefits. The more needs we can uncover, the more benefits we can deliver, the more benefits the greater the pay back, the greater the pay back the higher the value, the higher the value, the better the chance to up sell and cross sell.
Proving Value:
Using the funnel questioning technique will uncover needs, if they are there to be uncovered. However, it is one thing to uncover the need it is another thing to prove that there is adequate pay back and value in fulfilling the needs.
Having uncovered the needs we must probe and find out as much as we can about those needs and the implications to the customer if they are not met or fulfilled. We do this by asking past, present and future questions i.e. “How did you use to do this?” (Past), “How do you do this now?” (Present) and “How do you plan to do it?” (Future).
What we are trying to establish is the difference between what the customer used to do and how he does it now. If we can establish this then the comparison between what they are presently doing and what they may be able to do based on our solution, will be easier to grasp. This is important, because the difference between them doing something and not doing it is the “value gap”. We need to find value gaps that we can attach a price to, so that we can justify the benefit in terms of added value.
Let’s take an example:-
Your support customer used to have a manual stock and inventory system. Using your database for an automated system has enabled them to increase shipments by 20% per day. With the shipments of goods totalling ?10,000 per day, the value gap i.e. system or no system, is ?2000 per day. If the system is down it would cost ?200 to ?400 in lost or delayed shipments per hour. Staying as they are or going for a support agreement that would reduce down time is the value gap opportunity. That gap is worth ?200 to ?400 per hour.
Value Added Arguments:
You should always be looking for opportunities to offer more features that will be of benefit by asking the customer to tell you areas in which they would like to see greater support or additional services. If you say “Mr Smith we would like you to upgrade to our gold support agreement, you will receive earlier notification of software upgrades” the usual response will be, we don’t need them. Far better, using reasoning and questions to manoeuvre the customer into a position where they ask or enquire about additional services, explain to you what the possible outcome would be if they did not have those additional services and then you present a value added argument, to fill the gap.
Summary:
The best product, at the best price does not always win the order; we have all been outsold by a competitive salesperson probably offering less of a solution and sometimes even at a higher price. By selling benefits, not telling about features, the prospect will understand the pay off that your solution will deliver. Do not leave them to work it out for themselves, they might not bother!
If you can ide
Outsmart ThemCategory benefits are a poor substitute for brand meaning and brand definition. It is one of the major pratfalls in brand development and a trap into which many brands fall victim. Defining your brand by such benign promises is a sure fire bet to promote the market leader — not exactly what you have in mind when your goal is to grab market share and outsmart your competition.Look around at the market today and you can see these “benign brands” wallowing in brand failure and falling back on big
What we are trying to establish is the difference between what the customer used to do and how he does it now. If we can establish this then the comparison between what they are presently doing and what they may be able to do based on our solution, will be easier to grasp. This is important, because the difference between them doing something and not doing it is the “value gap”. We need to find value gaps that we can attach a price to, so that we can justify the benefit in terms of added value.
Let’s take an example:-
Your support customer used to have a manual stock and inventory system. Using your database for an automated system has enabled them to increase shipments by 20% per day. With the shipments of goods totalling ?10,000 per day, the value gap i.e. system or no system, is ?2000 per day. If the system is down it would cost ?200 to ?400 in lost or delayed shipments per hour. Staying as they are or going for a support agreement that would reduce down time is the value gap opportunity. That gap is worth ?200 to ?400 per hour.
Value Added Arguments:
You should always be looking for opportunities to offer more features that will be of benefit by asking the customer to tell you areas in which they would like to see greater support or additional services. If you say “Mr Smith we would like you to upgrade to our gold support agreement, you will receive earlier notification of software upgrades” the usual response will be, we don’t need them. Far better, using reasoning and questions to manoeuvre the customer into a position where they ask or enquire about additional services, explain to you what the possible outcome would be if they did not have those additional services and then you present a value added argument, to fill the gap.
Summary:
The best product, at the best price does not always win the order; we have all been outsold by a competitive salesperson probably offering less of a solution and sometimes even at a higher price. By selling benefits, not telling about features, the prospect will understand the pay off that your solution will deliver. Do not leave them to work it out for themselves, they might not bother!
If you can ide
You can make the sale. You know your core message. You know your target market inside out, right?But if you have even one employee than you've got another sales job to do. Everyone in your organization must also be sold on the dream you have. Everyone who answers the phone, walks the sales floor, attends that Chamber event, or follow-up on a sales lead in your company’s name must be sold first.Let’s start to think of your employees and strategic partners as internal prospects. What have you done to really light their fire ab
Value Added Arguments:
You should always be looking for opportunities to offer more features that will be of benefit by asking the customer to tell you areas in which they would like to see greater support or additional services. If you say “Mr Smith we would like you to upgrade to our gold support agreement, you will receive earlier notification of software upgrades” the usual response will be, we don’t need them. Far better, using reasoning and questions to manoeuvre the customer into a position where they ask or enquire about additional services, explain to you what the possible outcome would be if they did not have those additional services and then you present a value added argument, to fill the gap.
Summary:
The best product, at the best price does not always win the order; we have all been outsold by a competitive salesperson probably offering less of a solution and sometimes even at a higher price. By selling benefits, not telling about features, the prospect will understand the pay off that your solution will deliver. Do not leave them to work it out for themselves, they might not bother!
If you can ide
If you’re trying to break into the freelance writing market, you might often say aloud, “God, where’s the money in the freelance writing market?! I swear I’ll never dress up like a clown and scare people on the street again…”According to Writer’s Digest 2005 Writer’s Market, copywriting is where it’s at. Copywriter’s make $24-$100 dollars an hour producing copy for businesses. You can earn $330-$6,000 per brochure, flier, or booklet! They are also in demand for ads! And since you blog, you may already be adept at keyword optim
Summary:
The best product, at the best price does not always win the order; we have all been outsold by a competitive salesperson probably offering less of a solution and sometimes even at a higher price. By selling benefits, not telling about features, the prospect will understand the pay off that your solution will deliver. Do not leave them to work it out for themselves, they might not bother!
If you can identify the need for more services and explain, using benefits, how you can meet those needs, it will be a lot easier to up sell and cross sell.
Copyright © 2006 Jonathan Farrington. All rights reserved
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