UP-SELLING
&
DOWN-SELLING
DAVID RUBINSTEIN
EDITED BY
JIM OLSON
One of the six (6) ways to leverage existing accounts is through up-selling and down-selling. Interestingly, these concepts can be perplexing for both Buyers and Sellers. They are frequently confused with adding-on (Morsel #33). In addition, many Sellers and Managers think that down-selling is a negative thing.
Effective up-selling/down-selling can be ticklish, indeed. It can cause conflict with Buyers by sending a message that “I know more about your needs than you do.” It may come across that we think that we’re smarter than the Buyer.
Up-selling/down-selling is about offering alternatives to the Buyer. Sometimes this solution can be more expensive in the short-term but easier, or actually less expensive, in the long run. It is understandable that Buyers may be suspicious of the Seller’s intentions. It is essential that we tread carefully and very important to get it right.
One of my favorite stories is about a fellow named Joe who had a “honey-do list” for the weekend and needed a shovel. He goes into the store and while checking-out, the Seller asks about the project. Joe has to install 75 linear feet of irrigation for the garden. The Seller suggests he rent a walk-behind trencher that will save loads of time and perspiration. But, it will cost $85.00 for the weekend, certainly more than the shovel. Joe says “no thanks,” completes the transaction and leaves. Well, a couple of hours later Joe, rather sheepishly, returns to rent that trencher because his back is killing him! It made more sense for him to rent the trencher even if it cost a few more bucks.
The simplest way to up-sell/down-sell is by using the “Tell & Chase (Morsel #11)” method.
· Confirm that you understand what the Buyer is thinking. And, that their solution can work.
· Introduce the alterative and explain how and why it can work more effectively.
· Always use a Chaser (Morsel #11).
· It sounds like this: “I understand what you’re saying and trying to do and it can be done that way. Another way to do it is by doing it this way and here’s why… (explain). Which makes most sense for you?”
When talking about down-selling, I find that Sellers don’t want to go there. There’s a feeling that it’s a bad thing because it yields a smaller order. But, keep in mind when a Buyer says “I don’t think so,” or their budget is slashed, down-selling becomes a very appealing alternative – to us! Remember that seeing the whole picture can provide perspective and an order – although not necessarily what we were hoping.
The real cost of a product involves a number of factors – usage, length of ownership, re-sell value, etc. The real value of any product, though, is determined solely by the Buyer. We should always be vigilant of that.
What do you think?
Good Selling!
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