AND, it increased the number of sales made by 83%. Besides the extra revenues, almost doubling the number of sales will increase in the morale of your salespeople.
We are beta-testing adding a down-sell to $8,000 and $25,000 coaching packages. The niche is internet marketing.
Products with a high price tag are called “high-ticket” or “big-ticket” items. Selling products at this price level usually require lead nurturing and/or a sales professional, as opposed to an online purchase.
Our coaching is sold via phone sales to warm leads.
A “down-sell” is when a customer is offered a lower priced item when they back off from a higher-priced item.
For our coaching, we only offer the down-sell if the normal package is not affordable to the prospect. We try to pre-qualify these people to not make it to the sales calls, but some still get through. If the prospect can afford it, but is balking, we work out their hesitations through the sales process.
The downsell is one coaching call plus access to a mastermind group. It is the same price of our mastermind but with the bonus of one coaching call. This is only made available to people who seem a great fit for coaching but it is beyond their availability at the present time. AND, it is determined on a case-by-case basis.
The price of the down-sell is $1,000 or $297. Nothing to sneeze at. Many vendors would consider $1,000 a high-ticket up-sell. It’s all about how you position yourself.
Also, since you are starting with $8,000, getting some of the value of the coaching for $1,000 seems like a very low price, even though on an absolute level it is still a 4-figure purchase. It is the opposite strategy of selling a $1,000 package after a $200 one.
In the first 3-week beta test of this added down-sell strategy, these are what the numbers looked like:
Coaching Sales: $41,000
Down-Sell Sales: $4,044
Total Sales Percentage Increase from Down-Sell: 9.86%
Number of Sales Percentage Increase from Down-sell: 83.33%
As you can see, adding a high-ticket down-sell gives your business close to a 10% bump in revenues. Again, if someone is eligible for coaching, that is the only thing we offer. The down-sell is only for people who do not qualify. In other words, these people would otherwise be non-prospects.
So one amazing thing about this strategy is that you are turning what would be a non-prospect into a sale!
PS. Do you want to Increase the Value of your Customers with High-Ticket Sales? If so, Check Out My FREE Presentation!