Tuesday, April 15, 2008

Insulate yourself from the winds of downturn...

It was interesting that Mintel recently reported that during times of economic uncertainty the incidence up-selling increases.
Those two things would seem to conflict.

Hard times do focus the mind - businesses in all markets and industries focus much more specifically and energetically on what it is that makes them special - that element, story, product or service that makes them stand out.
Also, each person who walks through the door is a marketing opportunity and a source of essential profit during uncertain times - I guess you have to make each opportunity count.

So what are those valuable products and services that can yield a premium price and essential profit?

In order to up-sell we need customers to be confident that they are getting better value by the extra spend - that somehow they are getting something more for their money, fewer hassles, better quality and back-up.

Higher quality costs - but spending on higher quality product will:
1. Minimise the time and energy dealing with problems and customer complaints (choose wisely - all that glitters is not gold!)
2. Allow you to offer higher priced products for sale (and please don't look at %age margin alone but consider also the amount of money each sale will make for you!)
3. Give the customer a better wearing experience (they'll notice the difference and come back to you.)
4. Build loyalty and reputation - the cheapest and best form of marketing is referrals from pleased customers.
This is what adding value is all about.

After all, every business grows by finding new customers and selling more to existing ones.

And all this can be done through purchasing the correct products.
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