Upselling in a Down Economy

Everyone knows these are tough economic times. People have less money to spend and credit is tight or nonexistent. So trying to upsell in a recession may sound like an oxymoron.

It may not be as difficult as you think. Yes, it does require you to be more creative and think outside the box to convince your customers to spend more money.

Let me give you two real-life examples to illustrate my point.

Case study #1: Residents along the Gulf Coast are snapping up natural gas standby generators

Those of us who live along the Gulf Coast have horrific and vivid memories of the devastation caused by Hurricane Ike last year. The 2009 hurricane season is officially upon us and folks don’t want to take any chances this year.

Mind you these things are not cheap or an impulse buy, they range from $7,000 and up, to above $50,000.

Despite the bad economy, local dealers of natural gas generators are doing booming business and are swamped with calls from worried homeowners. How are they able to sell a big-ticket item that may not even be needed if we are spared from being hit by a major hurricane again?

Here’s how they are upselling these monsters:

Addressing the customer’s fears and offering peace of mind – don’t relive the ordeal, the inconvenience or the headaches of going days without power. A standby gas generator powers your entire home or business. Have hot water, air-conditioning, even use your hair dryer and be comfortable. Get peace of mind, knowing that even if there’s an outage, within seconds, you will continue to enjoy the comfort and convenience electricity provides.
Offering a discount to buy now – most dealers and installers have partnered with CenterPoint Energy, the local energy delivery company to offer 5 percent or up to $2,500 off the installed price. The two key components that make this a win-win proposition for everybody are: 1) customers must sign up before the end of June and 2) discount is available only to CenterPoint customers. The homeowner gets a price break, dealer generates more sales right now and CenterPoint acquires new customers.

Case study #2: Homeowners are installing new energy efficient windows

Construction and home improvement projects have taken a major hit during this recession. Yet, there is a big rush to buy and install qualified energy efficient windows.

Here’s a case of taking advantage of a unique situation to create an upsell.

The recently passed stimulus bill (the American Recovery and Reinvestment Act of 2009) includes significant tax incentives for homeowners who make their homes more energy efficient. A customer is eligible for a tax credit of up to $1,500 on qualifying products.

This upsell is based on the benefit of cost savings now and in the future.

The incentive can help pay for a significant portion of the new windows.
The energy efficiency improvements to a home will continue to pay back every month in reduced utility bills.

These two cases show that it is possible to create upsells even in a down economy.

How do you apply similar techniques to your online business? Here are some upsell ideas for Internet marketers:

Offer free bonus products to make the initial purchase a greater value
Provide a bundled price for buying eBooks with step-by-step videos
Create a physical product that provides additional benefits, sell CDs, and DVDs of your digital products at a higher price
Suggest version upgrades with additional bells and whistles at a premium, $17 for basic, $27 for intermediate and $47 for the pro version
Propose upgrades to “Lifetime” memberships or coaching at a discounted, one-time payment versus recurring monthly payments

Those are just a few upsell ideas you can use right now in your business to make money from your current customers while enhancing your reputation as a trusted marketer who offers great value that’s in the best interest of the buyer.

Want to learn the basics of upsells? Sign up for my free 5-day mini-course, “Essentials of Upsells.” Just fill in your name and email in the form below and the first lesson will be delivered to you as soon as you confirm.

Need more in-depth information on upselling and get ahead of your competition? Grab a copy of my 33-page small report, “Profiting from Upsells.”

Want to learn more about upsells? Sign up for a FREE 5-Day Mini-Course – Essentials of Upsells.