What are the chances that you won’t be asked “do you want fries with that” or “do you want that in a meal” or “would you like anything else with that”?
What about in your business? Do any similar questions get asked of your customers?
You see, at the point of making the sale your costs (wages, rent, electricity etc.) for operating the business have already been incurred. If you can encourage your customer to purchase something additional the Gross Profit from that sale basically flows directly to the bottom line (your Net Profit).
Think about the power of add on sales in this way – you already have made the primary sale, but have you maximised your profit?
Here’s another example:
You’re at your local café with a friend and have just ordered two cups of coffee. When the waiter delivers your coffees, he lets you know that they have a delicious chocolate cake on offer today, and asks whether you’d like some.
Neither of you had been thinking about eating anything…you only came in for coffees… but once you were offered the cake, it suddenly became attractive to your friend. You decline but your friend says yes.
Had you not been offered the cake you would have enjoyed your coffee and left.
The café owner would have been happy because you have purchased a product from her which has created revenue into her business to cover costs and generate some profit.
By offering you the cake, the transaction has been leveraged.
You still took up the same table, almost the same time in the café and the same overheads (in terms of wages, electricity etc).
The café buys the cake from their supplier at a cost of $2 per slice and sells it at $5. Therefore, the Gross Profit per slice is $3. There is almost no extra cost to the entire transaction (except for washing up an extra plate and spoon).
Thus, almost the entire $3 in Gross Profit flows straight into their Net Profit.
How many times per day could this exact same transaction take place? Most businesses are missing out on profits that are sitting right in front of them waiting to be unlocked.
What about your business…are you missing out on profits because your sales people aren’t asking your customers what else they’d like to buy?