Do you currently use a down-sell strategy?

Down-selling means:

  • Backing off from your original offer when your potential customer appears to reject it.
  • Offering something less expensive or of lower quantity.
  • Once you establish the buying relationship, upselling and cross-selling at a later date.

The key idea is to get the buyer to enter into a long-term relationship by at least persuading them to buy something.

After all, it is much easier to sell to a “client”, than it is to sell to a prospect.

When a customer comes to you, wanting to buy your goods or services, they are skeptical.

However, the fact that they walked into your door in the first place, is a moment to be celebrated. That means that you do have their momentary trust guarded, as it may be.

There are 2 questions to which you want to prepare a ready and compelling solution. Answer these questions ahead of time and you will see your revenue and profits grow.

The questions are:

  • What else do my customers want if they reject my initial offer?
  • What can I offer them right now?

For example:

A local health club always ties to sell new members a full one-year membership.

If that fails, they will try to down-sell them by offering a 90-days “health-makeover” membership.

If that fails, they may go to a 30-days membership, or possibly a one-week-trial membership.

They know if they can just get them to buy something, then the odds of them stay with them long term will go up exponentially.

When the customer is about to walk out your door without purchasing, you should have at least one final offer, that would make the customer turn around and at least spend a few dollars.

It must be something of a high enough perceived value for a low accepted price. This begins a buying relationship.

At that point your job is to think long term and to see how you can serve that customer as much as possible, so that he or she are compelled to return and give you more business.

Think about it this way…

If 100 customers come into your store or come to your website every day, and only 20 buy, it means 80 of them don’t buy.

If you can convince just 1 out of 80 to make a smaller purchase through your down-sell strategy, than you gain 21 customers instead of 20 and have possibly increased your revenues by 5%

How easy is it?

Let’s say that you spoke up, when these 80 customers were heading to the door.

You said, “Excuse me, is this your first time in the store this month?”. Most of them will say “Yes”.

Then you ask “Have you heard about our first-time-in-the-store special offer?”

Perhaps that offer is a coupon for a certain percentage off the total price.

Getting one additional new customer out of 80 would be easy. You might achieve 10 or 20 additional customers with the right offer.

Let’s say you only get one. The impact of that 5% increase is going to surprise you.

In this example we have a company with a million dollars annual revenue and 20 % Net Profit Margin and a 50% Gross Profit Margin.

If you make an additional sale, you have already covered the rent, the utilities, the salaries, the insurance, etc. Therefore you can measure the increase sales by Gross Profit Margin.

You may have to pay commissions and hard costs, but you are left with a higher percentage.

So, if you implement your down-sell strategy and you bring in a additional 5%, you would have increased your revenue by 50,000 dollars.

And since your Gross Profit Margin is 50%, you put 25,000 dollars in your pocket.

As you can see from our business example, there is typically no cost involved when implementing a down-sell strategy.

This is an excellent way for any business to immediately increase the revenue and profit.


Now let’s get you started right now by implementing this tactic:

Answer the following 2 questions to which you want to prepare a ready and compelling solution. Answer them ahead of time.

  • What else do my customers want, if they reject my initial offer?
  • What can I offer them right now?

Have everybody in your team ready to make this last offer.

I am here for your success.


P.S. Like to learn FOR FREE 10 Tactics to accelerate your profits? Follow this link for more information..<10 Tactics in 10 Days>..

P.S. These marketing tactic is one of many, which will be available for you if you become a member of our E-Learning System.

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