Sales Presentation: Add On Sales

10
Dec

Some salespersons sell products that lend themselves very well to “add on” sales.  For the purpose of this article, I define “add on sales” as additional products or services that may be of value to a buyer of a new item.  In this article I will use the sale of a 54” High Def Flat Screen TV as the primary purchase.  This product is currently listed at about $2000.  The two “add on” items I will use are a stand to hold the TV and a Five Year In-Home Service Warranty.  This stand would sell for approximately $200 and the warranty would sell for approximately $200.

The technique I am going to explain requires that the purchaser is going to be paying for these items with a credit card.  For the purpose of this article, the salesperson will be assuming that the buyer will be paying for this purchase over a one year schedule and will be paying 10% interest to the credit card company.  Therefore, assuming the purchaser buys the TV, the stand, and the warranty, the total purchase (less any taxes) would be $2400.  This purchase on a credit card charging 10% interest would create a monthly payment of approximately $212.  A professional salesperson selling products that could call for “add on” sales would very likely have a list of all such combinations and payment schedules on his person at all times.

Now how does the salesperson use this information during the sales process to maximize his sales opportunity?  When the salesperson first comes in contact with the prospect he should ask a series of qualifying questions to help him and his prospect find the best product for their needs.  One type of question he should ask is “money qualifying questions.”  The questions could be something like the following:

“Mr. and Mrs. Jones when we find the right TV for your needs is this going to be a cash or credit card purchase?”  If the answer is “cash,” then the technique cannot be used.  If the answer is “credit card”, then the following question would be asked:

“I have a very special TV offer in mind to show you, so let me ask, would approximately $212 per month for a year fit into your budget?”  If the answer is “no”, then the salesperson could ask approximately how much would be comfortable for them.  When they tell the salesperson the amount they could afford, the salesperson would look at his list and target a TV (and “add on” package) that would fit their budget.  If the answer to the question of $212 is “yes” then the following technique should be used.

The salesperson should demonstrate the Features, Advantages and Benefits of the 54” High Def Flat Screen TV.  When the buyer decides that they want to purchase that TV, the salesperson should start to write up the sales ticket.  As he is writing up the sales ticket, the salesperson should suggest that they look at a TV stand.  He should show them the $200 model.  If they decide to buy the TV stand, the salesperson should add that to the sales ticket.  If the prospect hesitates about this “add on” purchase the salesperson would say something like the following:

“Mr. and Mrs. Jones, I assumed from the beginning that you would need a stand so I pre-calculated that into my estimate of your payments and you should know that the $212 monthly payment would cover the TV stand as well.”  Now the prospect has been thinking about paying $212 all the time.  To know that the TV stand will not change their monthly payments makes it a much easier “yes” decision for them.

Finally the salesperson should sell the prospects and the Features, Advantages and Benefits of the $200 Five Year In-Home Warranty.  If they say “yes”, then the salesperson simply adds it to the sales ticket.  If the prospect hesitates, once again the salesperson would say something like this:

“Mr. and Mrs. Jones I know how frustrating it can be when a TV of this size acts up and you do not know what to do.  So, in pre-calculating my estimate for your payments, I included the price of this really excellent warranty.  So the bottom-line is that your monthly payments of $212 would cover the warranty as well.  To leave it off would not reduce your payments much at all.  Shall we include this excellent coverage for you?”  Once again the prospect has been thinking about a $212 monthly payment from the beginning.  To know that their payments will not increase makes this an easier “yes” answer.

Some people may think that this is simply manipulating the prospect.  I disagree.  I believe that it is simply a case of a salesperson being pro-active and assumptive in his sales process.  The prospect is told the price of each of the items as they are presented, so they know their full investment.  The salesperson has used his knowledge of his products and services to pre-prepare a package that presents the best possible purchase within the prospects budget.  I know this technique works because I used it for approximately five years in a retail setting.  During that time I outsold all of my fellow salespersons and won award after award for the highest average sale and for selling more warranties than other salesperson.  I did not have one single client ever come back and tell me that they thought I had taken advantage of them.


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