One proven way to increase sales (and most certainly gross profit)
Choices support decision making.” -Grant Cardone
Options give your buyer the ability to compare and in most cases lock in on what they really want and need, then select the package that is most appropriate for solving their problem.
We always give a buyer 3 options, the first is what the customer requested the second is a higher priced package, and the third is the lowest priced option.
Providing options does a few things:
- Establishes a Bottom
By presenting a lowest priced option, you establish a bottom. What I mean by that, is by you suggesting a lowest priced option you prevent the custom from making you a ridiculous offer.
- Use Inventory Not, Price To Negotiate
One of the best ways to preserve gross profit in your deals is to move customers to different inventory/packages when they are looking for a discount.
*Remember always move the buyer up in price/package on the offer FIRST, then if unsuccessful move to lowest priced option. DO NOT discount until you have moved the buyer through 2 different options
- Increase Revenue in the Deal
I had a customer once that I presented my online sales training platform to. It was the only product that they customer had asked to see or expressed interest in. During the meeting, after I proposed what the buyer requested, I showed him an additional option where I would include live trainers in their business along side my online program. The customer loved the idea and I ended up adding an additional $150,000 to the deal. Never assume your customers have “landed” themselves on the right product, remember, YOU are the professional in your space, not them.
Options open you up for quite a bit of flexibility in your deal when it comes down to negotiations and using options can inject more revenue, prevent unnecessary discounts, prevent your prospect from throwing a lowball offer at you without you first establishing a bottom.
3 Action Ideas to Dial It In:
ONE: Determine the most common offer that you propose to clients.
TWO: Once you have done that determine what options/packages you can propose to every client:
- Higher Priced Option/Package
- Lower Price Option/Package
- Alternative Selection / Refurbished / Previously Loved On
THREE: When you make a proposal to a customer of what they have interest in, what should you do when they ask for a discount (Don’t forget Tip #2 where you’re using inventory to negotiate before you even think about price). Script out exactly how will you transition?
One proven way to increase sales: Wrap Up
When you start selling and closing with these two things in mind, that choices support decision making and to negotiate with inventory before money, you will increase sales volume and profits, reduce the buyer’s need to shop and help them make the right decision which is ultimately doing business with you and your company.