Upselling: The Fastest Way to Higher Profits

by Bud Abraham

Other Articles by the Forum ExpertsOther articles by Bud

Why Upselling?

Because this little word is the most effective tool for increasing your profits. It can be a solution to your success in the coming years. If a detail shop/business does detailing it can't make a big profit (unless the car count is extremely high). Most of the income will cover labor, materials, rent, maintenance and repair with a little something left over for the owner.

You could make more profit on a paint chip repair than you can make on most full details when all is said and done. This same thing applies to windshield chip repair or carpet dyeing. If you were ever looking for a reason to add additional services to your business, you just found it.

If you are still not convinced, compare a detail business to a McDonald's. They bring you in because of their hamburgers, but they make their money on french fries and soda. Your center brings people in for a detail or a wax or carpet shampoo, but you make more profit on other services, mentioned above.

Set Sales Targets

If you agree that selling other services is a good idea, how do you turn that idea into increased profits? First, you have to decide which services are for you and which systems you can afford to purchase. Then set sales targets. These targets are simple to determine because they are always based on cars you detail. You can estimate the potential by doing a sample survey of how many cars you see that have chips on the paint or windshield, broken pin striping, faded or stained carpet, dings and dents.

Then calculate how many of these you could sell, and at what price. The numbers add up quickly. And, the added revenues pay for the systems.

How to Upsell

Rule #1: Be prepared, know the needs of the vehicle. The key to a successful sales presentation is preparation. Before you talk to the customer, you should make sure that you can perform the service or broker it to an outside shop.

Always address the customer by name and present a clear description of the needs of the vehicle and the benefits of the extra service.

Rule #2: Educate the customer and let them make the decision. But you need to know everything about the service you are selling; why this particular vehicle needs it and the benefit to the customer.

If they don't buy today create a service history on the car to prepare for an additional sale on the customer's next visit. For example, you can say to the customer, "I noticed that the last time you were in you had paint chips on the front end and they are still there plus others. There is even some rust developing." Always remember that during a presentation, you personally don't like to be told what to do by a sales person, and neither does your customer.

Rule #3: You can't make a sale unless you ask for it. You would think this is obvious, but many sales are lost because the sales person never presented the need to the customer.

Sample dialogue: "Did you know your pin stripping is broken? Or, do you know you have paints chips on your front end?"

Kind of like, "Do you want fries with your burger?"

Customer: "No, I didn't!"

Detailer: "With our paint touchup service, we will repair the chips perfectly mixing the paint to match exactly. It can be done during the detail and be ready at 5:00 pm and the cost is $75.00. Would you like us to make this repair for you?"

Customer: "Yes."

Detailer: "Thank you."

OR

Customer: "No."

Detailer: "Thank you. If you decide to have that service done later, we can do it separately from the detail but you will need to make an appointment. Just give us a call. We can pick up the car."

What to Sell

So, you've decided to sell additional services and you know the basic rules of the game. But before you can get off the sidelines, you have to decide which services to sell. Ideally you and your detailers should be able to perform these services with not much additional training. Popular upsell offerings include:

· pin stripping
· side molding
· paint touchup
· gold plating
· carpet dying and recoloring
· windshield chip repair
· simulated wood dash add-ons
· fabric protectants
· interior and air conditioning deodorizing with Ozone

Tools of the Trade

One of the strongest sales tools available to you is a computer system. In a detail business time is always a primary concern. A computer gives you instant access to the customer's needs if you keep a history. You can approach a customer with confidence when you have a printed report that contains the vehicle's service history with your detail business. You can simply point out the facts to the customer and let them decide.
Building a lasting relationship with the customer is more important than making a quick, one-time sale. Repeat customers are the result of satisfaction with your detail service. A valuable part of that service is recommending proper cosmetic maintenance. Know your facts, present the required services clearly and respect the customer's decision.

The key to higher profits through upselling is simple, ask the customer. You can't increase sales if you don't ask for the sale.

SIDE BAR

Successful - Upselling Involves

Being positive and confident

· Express a confident and positive tone of voice

Being prepared

· Be sure of the facts. Explain what the recommended service includes, why it is needed, how much it will cost and how long it will take.

Being professional

· Use terms that customers will understand, not detail jargon. This will only confuse most customers.

· Explain how the service will benefit the customer's vehicle.

· If available, use informational brochures to help sell recommended services. The customer can even take brochures home.

· Know your prices.

· Be sure that you can perform the service in-house or have an outside source before you recommend that service to a customer.

Being sincere

· Always use the customer's last name, unless they give you approval to use their first name.

· Smile and be courteous.

· Talk eye-to-eye with the customer.

· Listen to the customer politely.

· Let the customer decide. Show respect for the customer's decisions. It is the customer's vehicle and, therefore, the customer's decision.

· Above all, do not use words that may lead the customer to think you are recommending something they don't need.

· Be polite and sincere. If a vehicle needs a service, the customer should know about it. Even if the service is declined, the customer will be grateful that we are looking out for their vehicle's needs."