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Increasing Your Client Family Member’s Average Purchase with Terri Levine

by | In the Magazine, Terri Levine | 0 comments

I use 12 strategies to grow the profits of every company I work with dramatically.

Each one builds on the other so that I can guarantee my clients business growth. I believe most business owners don’t implement what we give them as business coaches because the ideas take time, are too complex, or they don’t think the ideas will work in their business.

The strategy I am sharing in this article is the one most businesses I have worked with implement with excitement, and the results are dramatic. In fact, most companies that implement this strategy report increasing their profits by about 15% with some companies reporting growth of over 50%.

What I love about this strategy is that it is easy to implement and it applies to every business, and it makes you look brilliant as their business coach, so they are more open to other strategies you share with them.  Take note that this strategy is super easy to implement plus you can apply it instantaneously to all businesses, and they will increase their revenues and profits with almost no effort and with zero risks.

Let’s dig in

To begin,  let me remind of something you have probably already heard.  Does this sound familiar? “Do you want fries with that?”

This very simple question was implemented in a very systematic way with McDonald’. Just by asking this one question they got consumers to increase their purchase price. In fact, I have read that over 30% of the people asked said “yes” to that question.  I found myself saying “yes” just the other day when a similar up-sell question. I was purchasing a new sofa with mechanical recliners. The sales person told me I could add a warranty for five years on the mechanical parts because the couch only came with a 2-year warranty.  

The strategy being used in both cases is known as up-sell or cross-sell.  The concept is offering an additional product or service at the point of sales.  Up-sell is when they buy more of what they purchased (“supersize it”)  and cross-sell is something they didn’t purchase yet and goes with their purchase (fries).

The psychology of why so many people say “yes” is pretty simple. We say “yes” because we are already in a buying state. This is why this technique must be used at the point of sale and not after for it to be effective.  Imagine after I ate my burger if they asked me if I wanted fries!  The strategy would make no sense at that time.

Let’s look at some examples

One of my client family members owns an upscale women’s boutique.  We implemented their up-sell a few short weeks ago. All the salespeople were trained to offer an incentive to a customer at the point of sale to purchase another like item at a discount.  Let’s say I found a jacket and was going to buy that, they would recommend another jacket and only at a point of sale give me 10% off that second jacket. This is an up-sell. 

They also use a cross-sell at a point of purchase by recommending another piece of clothing, like a shirt.  In just three weeks, they are reporting that 40% of the people buy another item at a point of purchase just because their sales have taken the time to make the offer of the up-sell or cross-sell at the point of sale. In addition, they tell me their customers are leaving happy.  So, they have satisfied customers and a better bottom line profits.

Now I want you to take a look at your own coaching business 

What can you provide as an upsell or cross-sell?  What can be a high-profit extra to increase your profits by 5% or even more?  Here’s an example from one of my client family members who is a business coach.  He was offering his business coaching at a point of sale, and nothing else was being offered with it.  The profit margin on business coaching is large as we don’t have many expenses, yet it can be larger while we create more value and better results for our clients.  I asked him what else might help his new client to get results?  He told me that he had a home study course he developed on a mindset which he really thought would help his clients get better results. 

I told him to offer that at a point of sale and also to discount it if he could.  The home study course cost him $39 to provide as it was manuals and other materials.  I asked him what he normally sold it for and he said $299.  I suggested he offer the mindset kit at a point of sale for a discount explaining why it was critical to do business coaching from the inside out with mindset before actions.  He agreed and said he would offer it for $249.  By the way, he had only sold 10 of these before us deciding to use it for the cross-sell. 

He implemented this strategy and his next five clients who signed up ALL purchased the program.  Why? It made sense.  It was logical and helped them get the results they were hiring him for.  Also, he had additional profits of $210 per clients so with his five new clients he had over a $1,000 in profits.

Take a look at your business coaching.  Can you offer an up-sell of a greater quantity of your services?  What complementary products or services can you provide?  Is there an opportunity to offer a related product or service? Also, finally, can you offer a higher level product or service?

Being transparent, I will show you how this works in my own coaching company.

If a prospective client family member signs on for a full day of strategy consulting with me for $25,000 we offer a second session during the next quarter for only $10,000 at a point of sale.  It’s a huge reduction. More than 12% say yes to this offer. If someone is signing on with us for our six-week program to create his or her high-ticket signature coaching program we offer our mastering Facebook for lead generation program as it complements his or her training in this program. 

We offer it to them for only $49 extra, which is a no-brainer and 100% say “yes.” If someone is joining our client family and entering our one-year group coaching program, we offer them a jump start individual coaching session with one of my coaches.  15% say yes and pay an extra $1500 for that service. So for those who are enrolling in our one-year coaching program, we offer them our mastermind which is normally $15,000, for only $10,000.  Five percent say “yes” to that offer.  All of these offers actually help our client family members get the results and outcomes they want faster and easier, so they are delighted when they accept an up-sell or a cross-sell and we have also made more revenue and profits, so it is truly a win-win.

I hope these examples are opening you up to the potential you have with this one strategy.

In addition, I hope you are seeing how to use this strategy with your clients. It works no matter the business.  I have implemented this strategy with repeat businesses like accountants and stores, and with infrequent businesses like physicians and realtors, as well as single purchase type businesses like furniture stores.

Repeat business has worked well.  One of my clients owns a hair salon, and at a point of purchase, they now offer an add-on of a scalp massage.  They have 30% of those in their chair saying yes and adding $15.00 per client.

A random purchase has been awesome for a recent client, a naturopath who now offers discounted vitamins, minerals and supplements at the time of the visit. Her numbers are as high as 90% accepting her offer an in one month that was an additional $2,700 in profits.

My own story of how the furniture store (my client) offered me a long-term warranty on the mechanical recliners shows that strategy works great. The owner reported over 60% saying yes the longer warranty with him profiting an additional $150 per sofa sold.

Take notice.

The possibilities go on and on, and the results are stellar.

All that is required is your creative mind, a plan to ask the up-sell or cross-sell question every time at a point of sale.

I suggest you quickly implement this strategy in your own coaching business as well as have every single client implement this fast.

My client family members who implement this think I am brilliant!  I am not.

I am simply helping them do what I am supposed to do – create more revenue and profits!

 About Terri Levine

Dr. Levine has more than 30 years of business, sales, and marketing experience encompassing work with over 5,000 business owners. She is also a best-selling author of over 30 titles and a very popular keynote speaker.

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