In college I sold used cellphones. Back in those days there was always someone who wanted to sell and someone who wanted to trade up or buy a used phone. My profits on each sale was usually between $20–$50. That of course isn’t much these days but in college it was better than being broke like everyone else.
My problem was that I could sell a ton and still not have enough profit to engage in bigger ventures (or more like to fund my escapades). All of that changed when I discovered these simple steps that even big companies use.
1. Using Upsells
Studies show that the best time to make a second sale is immediately after someone has already paid you.
I sold everything from car chargers, phone cases and headphones to increase my profits. The key is to offer the other products on the spot. Don’t let the customer leave.
Fast food restaurants bundle burgers, fries and milkshakes to create a meal. Service businesses have tiers such as silver, gold and platinum which are all priced differently.
I didn’t have the foresight at the time but I should have started a phone repair service.
You know how I always say strong businesses are built on a unique revelation? Ninety percent of the females I did business with said the phones they owned were paid for by their parents, a family member or a boyfriend.
There was also that “uncle”
What did I do with that insight? I targeted boyfriends of girls who I knew had upcoming birthdays.
You can have birthday promotions, customer loyalty promotions, customer appreciation bonuses and even special bonuses for big buyers.
4. Cross sells
Your best customers are people who have already paid you money. Unfortunately many of your customers don’t know all about your business. They don’t know of all the products and services you provide or at least they may not know the benefits.
You can increase your profits by asking your customers to buy other products. What’s great about this is that you can act as an affiliate and sell other vendor’s products to your inactive customers.
Profits can be multiplied by simply copying any of the steps I just taught you. Want to know more about growing a successful business?
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