Everyone wants to increase their sales, right? While the task might initially seem daunting and complex, there are really just two simple, though very different, approaches to take. Boiled down to its simplest form, sales can be increased by raising either the quantity or quality of the products being sold.
Increasing sales through increased quantity is heavily reliant on growing customer traffic. This however is generally out of the salesperson’s control and attained through expensive marketing campaigns. Dramatic sales increases can also be achieved much more efficiently and cost effectively with existing customer traffic by simply boosting the quality of the products presented and sold. This article will outline the key sales and marketing steps to follow to increase your sales by selling higher end products.
Higher end, higher income
Selling higher quality products will have a three prong incremental effect on your revenue. High end products naturally cost more than their more affordable counterparts so the first revenue increase manifests through greater sales commission. High end products generally also provide higher margin, which translates to more revenue for your business as well. Attaching accessories to every sale should be part of every good salesperson’s pitch and higher end products also require higher end accessories. Be sure to include better quality cables, a serious power conditioner, or whatever else is required to ensure the high end components will demonstrate their advantages.
Don’t sell, Educate
As an expert in the field, your knowledge far exceeds that of the average client. Successfully selling higher end products is not accomplished by talking your customer into purchasing something they don’t need. It is accomplished by enlightening them to the added features and benefits, explaining how it will demonstrably improve performance or functionality, thus making their purchase that much more enjoyable and appreciated. Like a good sommelier will explain the intricacies associated with a finer bottle of wine so they are understood and appreciated, your goal should be to provide your clients with higher education in electronics.
Budgets are just starting points
Many customers have a rough budget in mind based on their preliminary research. They’ll usually share their price range as you discuss their needs and desires so you can determine the best options for them. However, remember that their budget is based purely on their limited knowledge of the industry and they might be unaware of more intriguing, albeit more expensive products. More often than not, customers are willing to increase their budget if you can introduce options they had never considered and that make sense to them. If the product’s attributes far exceed their initial desires and expectations, they will not only happily spend more, but also be grateful for your service.
Good, Better, Best
To effectively convey the performance and feature advantages of higher end products to your customers, we recommend setting up 3 systems that will effectively demonstrate the differences. This arrangement is known as the Good, Better and Best (G-B-B) marketing approach, and its success is proven and well documented. Numerous marketing studies have conclusively shown that both salespeople and customers find it to be an extremely powerful, convincing, and above all, helpful method of facilitating the sales and decision-making process. These studies demonstrate that using the G-B-B approach guides most customers toward the “Better” option, which in turn allows businesses to generate increased revenue. No less than the Harvard Business Review touts this approach’s multiple merits in this article.
Let’s use home theater systems as an example of how these three systems should progress. A moderately powered and equipped receiver, 5 bookshelf speakers and subwoofer, and 55” screen would serve well as the “Good” tier. It should not be the most affordable, stripped down ensemble you can put together, leave that for when budget overrides all other factors. This needs to be a wonderful bang for the buck option that presents very well so if the client either does not have the finances or simply doesn’t appreciate the advantages of the next 2 options (unlikely), they can still purchase a system of which they’ll be proud.
The “Better” option should offer not only additional power, a more dynamic speaker package, and bigger screen, but also offer additional interesting features that the client may not have known existed. This could be anything from streaming ability, more advanced surround decoding, smart TV apps, or a feature that simply makes the system easier to use for the whole family like a comprehensive remote. The key to the Better level is it must offer inarguably noticeable and demonstrable advantages over the Good package.
“Best” should be a state-of-the-art, no holds barred system that would drop the jaw of even the seasoned enthusiast. More power, more resolution, more wow everywhere. If they love it and buy it then everyone is thrilled. Even if they don’t, chances are they’ll want it, and likely take the ensemble that allows them to bring at least a portion of it home. This in turn guides the customer toward the “Better” system. If you design the 3 systems carefully, the “Better” system should quickly become the most popular choice for your customers.
Promote it
If you have dedicated valuable floor space and time for the upsell initiative, support it fully with the marketing it deserves. Avoid using a sales oriented approach and focus more on the educational aspect, along the lines of “Become an AV Connoisseur”, “Hear and see the Difference”, or “Appreciate the Finer Details.” The client ultimately knows they’re coming to your store for a purchase but if they feel they’ve been invited for a form of education as well, you’ve instilled trust and increased their buyer satisfaction.
In Conclusion
You shouldn’t argue with Harvard and if executed correctly you won’t be able to argue with the results. Set up the required systems, educate your customers on the finer things of the industry, and present in a good, better, best approach so they can appreciate the differences. Follow these simple steps and you are sure to increase your sales of higher end products.
If you enjoyed this article then please be sure to check out some of our other Tips & Guides articles on the Kevro website.