How to increase your print profits by 40% in less than five minutes!

Create the right upsell for your customer and you are much more likely to achieve higher sales and profits. But how do you go about creating the right upsell opportunity? 

Time Is The Enemy Of Creating Profitable Print Sales...
There is a constant pressure on everyone to create quotes as quickly as possible for clients. But this means that the opportunity is often missed to guide the customer to a more profitable outcome for you.

Spending five minutes more on a quote can mean the difference between winning another commodity job or job that gives you excellent profits. Often you can achieve this result in much less than five minutes.

The route to creating these results lies in creating the right upsell for a client.

Here’s How To Create A Three-price Upsell Opportunity
If you create the right upsell opportunity for your customer you have a much better chance of controlling their purchasing activity. This relies on you not just creating the right offer but setting out to the customer in the right way. If you do this you are much more likely to achieve higher sales and, most importantly, higher profits. In addition to this you are likely to achieve a stronger relationship with your customer. They will value the suggestions that you are making. They are more likely to see you as a supplier that is creating a partnership with them. 

If you fail to upsell, or if you upsell in the wrong way, you lose this chance to create a stronger relationship. You won’t have the same control over the sales process. You are less likely to achieve the best sales and profit opportunities. Your customers will simply see you as a commodity print supplier.

So how do you go about creating the right upsell opportunity?

Here’s How To Create A Three-price Upsell Opportunity
Let’s say that your customer has asked for a price for 250 A5 4-colour single-sided leaflets.

  1. Make sure you also provide prices for 500 and 1,000 copies, even if your customer hasn’t asked for them
  2. Remember that customers rarely compare prices on upsells. So increase your mark up by 2% on 500 copies and by 4% on 1,000 copies
  3. Include the unit price in your quote so that customers can see the extra value in ordering a higher quantity
  4. Make sure you include a good reason to buy more copies. For instance, “Make sure you don’t run out of leaflets at your event” or “Make sure you are not faced with an expensive reprint”.

How This Will Look On Your Quote
In this case, the cost for 250 copies is £21.88. We suggest a 30% mark up of £6.56. If the customer chooses option 2, your cost will be £28.75. Your mark up (at 32%) will be £9.20. The sell price will be £37.95 and the unit price 7.6p. If the customer chooses option 3, your cost will be £42.50. Your mark up (at 34%) will be £14.45. The sell price will be £56.95 and the unit price 5.7p.

Numerous studies on customer behaviour suggest that the second option is the one that will be chosen by the majority of customers. Compare selling option 2 to option 1. Your turnover is up by 33%. Even better, your mark up has increased by a massive 40%. That’s not bad for 5 minutes work!

Here’s An Alternative That Can Be Even More Profitable
Instead of focussing on upselling quantity, sell on upgraded specs instead. Here’s an example of how this might work if you were quoting a customer for a premium roller banner.

  1. Also, provide a price for a double-sided banner. (Ideally, you would have two specification upgrades, but this isn’t always possible.)
  2. Remember that customers rarely compare prices on upsells. So increase your mark up by 2% on the double-sided banner.
  3. Make sure you include the good reason for the customer to upgrade. For instance, “Make sure you get your message across from all angles” for the double-sided banner.

Again, let’s work on the assumption that the customer chooses option 2. This results in a cost to you of £89, compared to £79 for option 1. Your mark up for option 1 is £23.70 and for option 2 is £28.48. This is a 14% increase in turnover and a 20% increase in profit compared to the customer choosing option 1.

Here Is An Important Tip To Maximise The Chances Of The Customer Choosing Option 2
Make sure that the difference between option 1 and option 2 is not too great. Ideally, the total cost to the customer will be around 10-15% more. If the difference between the two options is too high, the customer is more likely to stay with the original option that they requested.

The exception to this is if you can show a reduction in unit price because the customer is ordering a higher quantity.

Many print resellers see the logic in this three-price system. However, they also see a potential problem with the system.

Doesn’t Providing Three Prices Take Up Too Much Estimating Time?
Creating prices does not have to be a lengthy process. There are now plenty of instant pricing options online. Remember, you can use this to guide your internal pricing.

One option is to use our instant price calculator. All the prices in the article were created using the instant pricing calculator. The whole process took less than five minutes.

In addition, it is worth creating a set of standard templates. You can use these for standard products and you can paste these straight into your quotes or covering e-mails.

Here are three action points you can carry out right now to help you put three-price upsells into practice

  1. Create a three-price quote template so that you can create these opportunities for your customers quickly
  2. Issue this template, together with a copy of this article to anyone involved in creating prices or selling print at your company
  3. Check out the instant price calculator at Where The Trade Buys 
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Posted by: Where The Trade Buys

28/07/2016

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