For beauty business news, beauty store owners turn to Beauty Store Business. Beauty business trends, beauty business profiles and more!
Issue link: http://beautystorebusiness.epubxp.com/i/141850
Upselling is a learned skill. Check out these pointers on improving your revenue by employing this sales tactic. MORE SALES MEANS HIGHER PROFITS. YOUR CASH REGISTERS must ring more often for your beauty store to survive and thrive. Today's tough economic environment makes building revenue more important than ever. Just how can you spark more sales among wary shoppers? Experts say one of the most powerful techniques is "upselling." That's the promotion of better quality, higher priced merchandise that more closely meets customers' needs. "Upselling spells the difference between just getting by and having a very profitable year," says Dr. Jon M. Hawes, director of Indiana State University's Sales and Negotiations Center (indstate.edu/business/ sales), Terre Haute, Indiana. Retailers commonly enjoy sales increases of 20% or more when they upsell their current customers, adds Hawes. "Revenue from upselling is usually over and above a store's breakeven point. So the extra sales turn quickly into profits." Upselling is even more powerful when combined with cross-selling— the promotion of add-on items that enhance the value of the customer's initial purchase. "Something as simple as offering to show the customer a related item can lead to more sales," says Hawes. Difficult times make upselling and its cross-selling cousin all the more important. "When times are tough, customers may need an extra nudge to spend more or select an upgraded product that offers benefits beyond the basic, standard model," notes Hawes. Just what are some effective extra nudges? Here are tips from sales experts around the country. 56 August 2013 | beautystorebusiness.com iStockphoto.com by Phillip M. Perry