If you have ever bought a new or used car from a motor dealer, then there is every chance you have been introduced to the aftermarket salesperson after signing the contract, who then tries to sell you tinted windows for your new car, then goes on to try to sell you paint protection and many other products. This can really add to the cost of your car, and the profit margin of the car dealer.
After that up-sell attempt (potentially worth thousands of dollars to the dealer), you are then wheeled into the Business Managers office, they then receipt your deposit and try to sell you several other financial & insurance products, promising convenience and a one-stop-shop, saving you time, as everything is handled in house.
This is all part of a proven and strictly enforced sales process, that adds hundreds of thousands of dollars, if not millions, to the car dealers bottom line every year.
By this rationale, how well is your business managing its up-sell?
A little while ago, we had this conversation with the owner of a well-known fast-food chain and worked out the numbers.
These numbers were based on a one in three conversion rate and were based on the average number of opportunities they had daily to make a sale, and only based on a three dollar up-sell with a profit margin of around two dollars per up-sell.
OK, so we now have a simple sum. As every business opens a different number of days each year, we have just picked approximate numbers for this example.
The business makes on average one hundred and seventy-five sales per day, and have 350 trading days per year. They make on average $2.00 profit per up-sell, each business will differ here, this is why we used a very low number. This number is worked out on a one in three conversion ratio for up-sell. (As an example.)
Based on this formula, each business would earn approximately 41,000 dollars extra per year, no small sum. Multiply this amount by 30 outlets and you are talking an extra 1.2 million dollars a year by just simply asking an up-sell question, that's a nice bonus.
Up-sell compliance is just one of the metrics we monitor during a Secret Shopper visit.
As mentioned up-selling is just one of the customer service metrics we focus on, so give us a call, or drop us a line to see how much money a Secret Shopper / Mystery Shopping program with The Secret Shopper Mystery Shopping Services can make your business this year.