How To Instantly Increase Your Sales Conversion Rate and Add $25,000-100,000+ To Your Profits by Changing One Tiny (no cost) Step in Your Sales Process
What is “Downselling”?
Many of you now utilize the point of purchase maximization technique of upselling (and I trust optimizing the results). To make sure we are on the same page, upselling involved offering an additional item to the primary purchase to increase the overall price of the transaction.
In contrast, downselling is where you offer an alternative to the primary purchase to decrease the overall transaction price. Why would you ever do that? Well we teach several applications of this strategy but for this brief tip I am going to focus on the application of “Increasing Sales Conversion”. If you are losing out on potential clients because they cannot afford (or chose not to) your product or service, even though they want what you provide, downselling provides a simple way to “give them what they want” and convert them into profits instantly.
This strategy applies to most businesses and can be profound for many. When I taught Chet Holmes this concept, he said it was one of the most impactful things he ever implemented in his company.
Essentially, downselling is where you offer the prospect a lower cost alternative. This may be a smaller quantity package or a lower quality item, or even a first time buyer “special purchase” opportunity. The goal is to win the customer so you gain the opportunity to do business with them in the future as well.
Downselling Leverages What You Already Provide
Downselling can be amazingly simple if you simply utilize the exact products and services you already offer to create the lower priced item. If you are a health club and trying to sell a prospect on a Gold Membership that includes a one year membership, an obvious downsell is a 90 day “trial” Membership. You win a customer and a chance to convert them to a regular member. Taking this a step further, you could have a second downsell to a 30 day membership…and finally to a one week membership.
Real World Example #1*
An Instant Increase in Sales Conversion of over 125%
At my company, Business Growth Dynamics, we implemented a new downsell program in our coaching division. So we simply created a series of lower cost ways they could benefit from our coaching services and training. Our sales conversion rate increased by 125% in the first month. These are clients that would have never purchased coaching services at our standard one-on-one rates. But, and this is critical, they wanted and needed the service!!
Real World Example #2*
Marketing Systems Training Company adds $10,000 a month in Profit
I recently spoke with the CEO of an international Marketing System Training company that said he heard my interview with my friend Eben Pagan and was intrigued at the concept of upselling… So I gave him some distinctions and helped him immediately create a downsell strategy – two training programs priced below their current lowest priced one.
We quickly determined it was at least a $10,000 per month profit stream (based on past lost prospects that would have purchased) … and the CEO said that he expects it to grow to over $50,000 a month in profit!
The great thing is that it includes the exact same services that they already provide, just stripped down versions. So it required little effort to put it into practice.
Real World Example #3*
$96,000 a year in profit while helping people – How cool is that?
A healthcare provider immediately added $2,000 a week to their profits when they learned the detailed implementation systems we teach in our 30 minute “Downsell Workshop”. The strategy is totally proprietary so I am not allowed to reveal the details, except to say that there are 200 patients a year getting the help they need due to this creative downsell solution. And 50% of those that were offered the lower priced alternative are accepting the offer.
Profit Action Steps
Ok, let’s get you ringing the cash register. Select any product or service you offer and create a simple downsell that you can offer to prospects that do not purchase your standard product or service. Remember, it can be a lower quantity, quality, include fewer bells and whistles or even be a one time deal.
As with every strategy I share with you, Downselling for Profits costs virtually zero to create and test. So go for it and ProfitNOW™.