How to downsell and increase your profits
How to downsell is an important aspect when you want to increase your profit especially since not every customer will buy your products or services at the price you are proposing
While it’s true that closing a sale is tough, losing one can be way too devastating. And yes, it could be true that a client just can’t afford the product or service you’re offering. Does that mean it’s time to give up? No, it just means that you need to be creative!
Think of it this way
As a sales representative you are talking to a client and you realize in as much as they want the product you are selling, let’s say a car, they just can’t afford that particular make or model
What are your options in this case?
- let them go and come back with money (except you aren’t sure if they will)
- downsell them
WHAT IS DOWNSELLING?
Downselling is when you adapt your offer to a customer who’s second-guessing a purchase that might be out of their price range.
The idea is to match the customer’s budget and recommend another item that’s cheaper and has similar features to the original item.
For example, if a customer can’t afford a premium mobile phone, you can recommend last year’s model.
HOW TO DOWNSELL IN ANY BUSINESS
Here are five ways you can down sell a potential client
Recommending different products
Contrary to what most people like to think, less money may not always be the reason clients backout of deal, it is a common reason but not the only reason!
Think about it, what is money?
Money is a medium of exchange or a way to measure value. Which means, rationally you only exchange it for things whose value you perceive to be higher than the money!
With this logic it could be the case that the product you’re offering isn’t the right fit for the client from the client’s perspective.
That doesn’t mean they won’t benefit from something else in your stock.
Take the time to understand their needs and recommend a different product that would better suit their goals and budget.
You can achieve this by;
- Understanding the clients need
- Find an alternative product that meets these needs but is within the client’s budget
- Compare the products benefits to the product they had in mind but ended up not buying so that they see how their problem is still solved
Communicate secondary offers on exit-intent
You could look at point one and think, “this is well and good but we are an online business so how do we manage this?”
In the online world if a client leaves a page without adding to cart, don’t let them go without making one last effort to keep the sale.
Use exit-intent pop-ups to offer a secondary product or service that complements the one they’re leaving behind.
The point is to show them alternative solution to their problem as you communicate a secondary offer
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Reducing the scope of the client’s goals
At times down selling just comes down to redefining the clients’ expectations
It can be a simple case of a client being interested in a lot but wants to pay less
In circumstances where the client’s budget doesn’t align with their lofty goals. Rather than lose the sale altogether, work with them to refine their goals and create a plan that meets their budget while still addressing their needs
Offering different payment terms
If the client is struggling with the overall cost of your product, consider offering different payment terms.
This could mean monthly instalments, a longer payment period, or even a down-payment followed by smaller instalments.
Obviously, you have to ensure that this is something the business is ok with
Offering value package
Let’s say none of the above strategies seem to be working, then consider bundling products or services together into a value package that better fits the client’s budget.
You can still provide the value they need, while giving them a price point that’s easier to manage
For instance, if you are a fitness trainer who typically offers one-on-one personal training sessions at a premium price. But in this case a potential client expresses concern about the price, making them hesitant to commit, rather than losing the sale, you could offer a value package that includes a combination of services at a more affordable price point.
The value package could include the following:
- four one-on-one personal training sessions per month
- Access to your online workout program
- Nutritional coaching and support via email or messaging
This value package not only keeps the client engaged with your business but also opens the door for future upselling opportunities as the client progresses in their fitness journey.
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