Today’s topic is very important – down selling the upsell. You might wonder how that works and what makes it so important at this moment. So one of the big questions that local businesses have been asking and something that they’re faced with day in and day out, myself included, is the situation around cash flow with the lion’s share of the United States’ shut down. To increase cash flow in a business at this time is very, very challenging.
What we’ve been finding some success in is this concept of down selling the upsell. I want to teach you the strategy. And I’m encouraging you to, to kind of think a little bit outside the box with this one. The reason is, that it’s a little bit different than probably anything that you’ve ever heard before. What I love about this concept is that it helps increase cash flow in a business for you now.
And then assuming that your sales game is strong and on point, when things start to clear up in the next couple of months, a couple of weeks, or whatever that timeframe is, then you’re able to recoup a lot of that at full strength and the full value.
Let’s look through a few industry examples.
FLOWER SHOP BUSINESS
Right now, most florists are not considered essential businesses, so they’re pretty much shut down. Shipping is also a bit of a challenge. If you look at things now, from a florist standpoint, your bigger dollar stuff is plenty. For example, events like weddings, bar mitzvahs, birthdays, anniversaries, and proms. So rather than selling the full enchilada or the full package, for example, someone’s wedding a year from now.
Normally, they would be giving either some kind of deposit or pre-paying for a lot of this. It, of course, depends on how your payment stuff works. Sadly, most people are putting off events like that because they just can’t fathom it. Or they really just can’t put together in their head, “how much longer they think this is going to last.”
What I would encourage you to do rather than selling that whole package is, what could you sell them now? Could you sell them some samples? Could you sell them a plastic bouquet that the bride over the next month could play with? Or, could you sell them some plastic flowers that they can start to share on their social media accounts? And get everyone’s feedback that allows them to pick their perfect bouquets and boutonnieres?
Could you sell them something and let’s just say, for kicks, it’s $250 or $200, whatever that price point is? So instead of saying, “Well, I know that your wedding is in a year from now and normally we’d be taking a 50% deposit to secure your spot. But right now, what we’re going to do is we’d love you to get to kind of play with the flowers. And show them online to make sure that you’re picking the most beautiful flowers.
So we’ve got this little package, it’s $200. What’s even better is that, when we end up booking your full package, whether that’s in a month or two, we’ll take that $200. And that will apply as a credit to your full package.”
Basically, what you’re doing now is you’re creating some cash now, and then you’re applying whatever they’re paying now as a credit to the bigger package. Rather than trying to sell them the bigger package, you’re down selling them to something smaller. And then you’re circling back when things clear up to essentially get the rest of the money.
But that kind of ease of sale process now is something like “well, you’re going to get credit for all of that—you’re going to essentially get a credit towards everything that you’re purchasing with us.”
So what if you were to do the same kind of thing in all different types of businesses?
Well, what if they’re going to do a big landscaping job and they wanted to put that on hold? What if you were to offer something smaller, like doing a fall cleanup. You could tell your potential clients, “I know you normally do that with someone else, but let’s do your fall cleanup. We’ll even apply a portion of that to the future project.”
So the whole goal is you’re trying to increase cash flow in a business now, secure them as a customer now.
The reason why this is important is candid, most small and local businesses are absolutely getting crushed as they are unable to increase cash flow in a business. And yes, there’s relief coming and some support, and we’re not going to go down that road. But if you need some cash now, you’ve got to get creative and start to look at what is a smaller package that you could assign to show someone why they need it.
Here, we’re encouraging them to go virtual and do a daily circle of some daily lessons. Instead of charging the normal thousand dollars a month, for example, you’re going to charge $50 a week. And then you’re going to circle back in the next month or so when things clear up, and you’re going to end up securing the rest of that revenue.
I want you to consider some of the things that you could, “down-sell now, and then give you that foot in, to circle back”. The reason most customers want to circle back with you is that people love discounts, they love promotions and they’re not gonna want to miss out on something.
So if they know that they already have a credit that’s waiting for them, they’re much more likely to do something.
USED CAR BUSINESS
Most of those businesses are shut down, but the auto body pieces do not close. Could you down-sell? What you can offer is this: “Well, we’re going to sanitize both your vehicles and that’s $200 a vehicle. And I know you talked about purchasing something with us. So if you end up purchasing, we will apply the $200 per vehicle to your sale
Those small businesses have secured $200 or $400—increase cash flow in a business just by a bit. And then they’ve got that into what when things actually clear up, they can circle back, sell the person, you give them the credit.m Plus, you’ve also created some goodwill.
Take a step back today and look at can you down-sell the upsell think outside the box.
Get out there, make a change, and take some action.