Upselling is the process by which the salesperson convinces the customer to purchase additional items or services besides the product or that was originally intended to be purchased. Upselling can be found at any profession, from the local car wash, to lawyers and doctors. Even politicians use upselling (“don’t just vote for me, also vote for the party”). The importance of upselling cannot be overstated. It can mean the difference between a successful and a failing business.
So how do you increase upselling? At LivePOS we have developed a number of features to assist retailers in upselling using their POS. One of the best ways is through placing variable pricing on products. Then, one can create a buffer when the product goes above a minimum price, which can be used at bundling other items below their minimum price. For example, say you are selling toys. Toy A costs you, the retailer, $8 and has a minimum retail price of $10 while toy B costs you $10 and has a minimum retail price of $15. Say a customer walks in and wants to purchase toy A, which is the most sought after toy during the holidays. The sticker price on toy A is $20. After some haggling, you agree to sell toy A for $17, and as an added bonus give the customer a deal on toy B for $13. How can you do so? Toy A sells for $17 which is $7 over the minimum price. Hence you created a $7 buffer. This allows you to sell toy B at below the minimum price, using $2 of the buffer you created. This way your total profits are $7 on item A and $3 on item B for a total of $10; consequently, you increased profits by 43% through upselling.
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