Sept. 1, 2025

Upsells Downsells and Cross Sells

Show Notes
Transcript

One way to increase both the frequency of sale and the Ave dollar per sale is up-sells down-sells and cross-sells.

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WEBVTT

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Hi, you have done to censure.

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Wow for you your.

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Yo. It's the Pipe Man and we are here a

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motivation Monday Positively Pipe Man segment of the Adventures of

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Pipe Man right here on W four c Y Radio

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and I have our resident expert on business with some

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powerful business strategies for us once again. So let's welcome

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to the show. Michael Barbarita.

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How are you fantastic?

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Dean? How you doing?

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I'm doing great. You know we got I just got

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back in from LA and before that I went to

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prison at Shawshank Prison. You know the movie. Yeah, so yeah,

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it'll be had to do an event at Shawshank is

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in for a festival and as like one of the

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coolest venues. So now we're back and we're ready to

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share some powerful business strategies. There you go.

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So, you know, one of the things that you know,

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if you recall from the seventh step profit Formula, two

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of the steps and that seven step profit formula once again,

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is that twenty percent that business owners should be working

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on that drives eighty percent of the revenue.

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And two of the things.

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That are in are in the seventh step profit formula

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average dollar per sale, increasing the average dollar per sale

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when per customer, as well as the frequency of sale.

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So if you sell to the same customer an average

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of two times, got to make it three, got to

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make it four. So one of the ways, one of

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the effective ways to do this is and a lot

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of business owners are missing out on this is cross seals,

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up sells, and down cells. Now I'm going to give

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you a Donald's example of how that works. But but

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but the one thing a lot of business owners are

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missing of the down cells. So let me just give

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you a quick example. So if you go to McDonald's

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UH and you order a hamburger, they'll ask you if

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you'd like fries and a coke with that. Those are

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those across cells because they compliment your your existing they

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compliment the hamburger in this case. And then an up

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cell would be uh supersizing it. That would be an upsell.

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It would be a high higher not necessarily a higher quality,

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but certainly it may be a higher quantity, so higher

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quality or higher quantity product or service. And then the

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down cell would be like like the Kid's burger, something

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something that's below the regular hamburger. So that's that is

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basically an example and what's great about it is what

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what business owners are. Most business owners are missing. Some

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of them have cross sells, some of them up sells,

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but very few of them have down cells. When somebody

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can't afford something that you're offering, it's always best to

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have some type of lower level offering, whatever that may be,

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so that it's affordable. Uh if in fact budgetary concerns

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are in play. So uh, that's those, So those are

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the those that cross sells. Down cells and up sells

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are are a critical strategy if you want to increase

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frequency of sale as well as average dollar for sale.

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So it's it's I mean with respect to with respect

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to how that how that strategy fits in. So like

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for example, in my let's let me just take in

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my business. So we have uh, one of our up cells.

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If somebody wants to have CFO services, one of our

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up cells is CFO services and strategic implementation that combination.

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And then for a down cell if they if they

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can't afford either CFO services or strategic implementation, we have

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a do it yourself program at a lower price for

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strategic im limitation. We even have down cells below that

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where we have study guides and workbooks for people who

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just want to know about down sales, cross sells, and

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upsells for one low price. So that's an example. That's

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an example in the service business of utilizing up sales,

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cross seals, and down cells, and they can be utilized,

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you know, and a lot of the thing is a

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lot of the times business owners forget to incorporate it

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part of their sales process. When I get a business

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owner who's only doing thirty thousand a year in sales,

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you know, they're startup, they're doing thirty thousand, I'm not

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going to sell them a five thousand dollars a month

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CFO services and Strategic Limitation program. Okay, I'm going to

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probably either give them the sealth Study our self study

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and Strategic Limitation program, which by the way, incorporates one

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meeting per month so that we can make sure they're

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accountable for what they're doing. Because a lot of business

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owners will take the will take the do it yourself

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and won't do it themselves. So we give them accountable

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with the once per month, and we give them a

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whole library of videos and workbooks so that they can

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perform these implement these strategies. But if I didn't have that,

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or if they someone can't. Maybe someone who's doing thirty

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thousand a year in sales can't afford five hundred dollars

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a month. I can give them, let's say, a workbook

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on how to develop a compelling offer, the five components

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of a compelling offer.

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So I should be able to sell something that somebody.

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That's the whole point.

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And I agree with you too. It's like you have

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to you can't just be cookie courtory. You have to

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customize something to suit the client's needs, you know. So

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not everybody wants forget affordability for a second. Not everybody

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wants the full service, you know, So you got to

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take that into consideration too, That's right, And.

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That's I think that's the thing a lot of business

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owners miss, you know, because even even somebody who does roofing,

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who's just thinking of the big you know, roofing plan,

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you know, they can down sell people to repairs, you know,

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if they if the people don't have the money to

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do the whole roof, they can they can also you know,

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just do around the chimney where there's a lot of leakage,

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where a lot of leakage, and roofing industry.

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There's a lot of leakage around the room the chimney.

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Yeah, so they can make for pairs and sure up

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the chimney, uh for you know, if if in fact,

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you could you potentially keep a roof going another you know,

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five or ten years, if you just uh patch up

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the weaknesses like the chimney. So that does once again,

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if if you don't have that in your arsenal, you're

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gonna miss out on a sale. What's the whole point

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of beings?

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Yeah, And I have another perfect example of somebody I know.

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It just happened recently. They're getting new windows for their house,

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and so they didn't get all of the windows done

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because they couldn't afford the whole thing at once. So

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they did pick the windows they wanted to do. But

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then they're gonna do the other windows, okay because for

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a couple of reasons, like you wind all uniform and stuff.

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But they're gonna do it at a time when they

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have the money to do those So instead of doing nothing,

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you know, part of it's being done now, part is

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being done later. And then the company itself still in

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the long run, ends up making the money and maybe

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even more money because it's done separately, you know, and

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so the company benefits opposed to a company's like, no,

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you have to get them all at once, and then

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they lose us in right.

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And and what they'ra and what and what many people

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also miss is that thirty four what's a customer buys

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to you, there's a thirty four percent chance they'll buy

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something else if it's presented to them. So that is

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the is the frequency of sale that I'm talking about

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where we don't realize that even if we sell a

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night of for nine dollars at ninety five cents, that's

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a customer, yeah, and that customer has a long term

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value associated with it as long as you can see

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the market to that customer.

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And again that is brilliant because I've done that my

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whole career. Where Like even when I used to be

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in the investment business, you know, and our firm minimum

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was twenty five thousand dollars. Well, some of my biggest

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clients in that business were people that I broke that

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rule and let them in for four or five thousand

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dollars or even less sometimes. But to your point, once

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they're a client, you know, then there's that trust in

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that relationship that's already there. And the reason those clients

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became my biggest clients is because they probably had more

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money than the people that were starting with twenty five thousand.

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But because they had more money, they want to test

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the waters first.

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Uh.

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So that's amazing. Yeah, I know, And it works across

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all industries. It's not you know, it's not industry specific.

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We used Hamburgers, we used my business fo services and

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strategic im limitation. We use your example in the financial

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services industry.

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So it worked.

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This this formula of upsell, cross sell, and specially down

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cell works in all all types of industries and in

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all times. So I think once again, uh, it's really

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valuable for both increasing the average dollar per sale because

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you could upsell, and also the frequency of sale because,

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like in the example that I gave you with somebody,

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if I was able to down sell somebody all the

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way down to let's say the five components of a

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compelling offer, workbook and study, once they bought that, you know,

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they can now look at how to how to prepare,

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how to develop a position of market dominance as another example.

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So it's it's it's continuous and and and the relationship

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can last for years, and the the lifetime valueble customer,

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which is a very important metric to follow, elevates. And

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you know, one of the things about the average of

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the lifetime valueable customer. When I was in the frozen

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cookie dough business, that was a critical metric for me

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because my opening order was only fifty dollars. But I

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knew that once my customer started buying my cookie dough

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that they would continue because I believed in my product

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and it was a good.

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Product and so.

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And that's why I was able to give away a

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two hundred dollars confection of it with every opening order,

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even though the only opening order was fifty because I

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understood that the long term value of my customer was

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five brand and so the trade off was two hundred

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dollars for five grand. And so it's an easy decision,

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And that's why it's an important metric to understand totally.

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How do people reach out to you to get more

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of this type of information.

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Well, go to next Step CFO dot net. They can

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download my book for free called Powerful Business Strategies. What

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I'd love them to do is to have a book interview.

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Uh.

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The way they can do that is they go to

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next step CFO dot net, forward slash contact, fill out

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the contact form and in the message box write the

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words book interview and UH love to see what we

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do Dean is we update our book every year or so. Why, Well,

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you know there's higher you know there's higher higher inflation,

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there's there's tariffs now right, there's interest rates, and we

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want to make sure we know our strategies work. We

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just like industry information to prove out what we already know.

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And so what happens is we keep speaking with business

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owners to make sure that we uh constantly update our

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book and that the strategies for things for those particular

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industries are working. Yeah, so uh with we would love

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to interview.

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Well, that's beautiful. I love all that you what you do.

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That's why you're on the positive and positively Pipeman segment

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And this one I loved especially because I think is

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very important for every business to know and every salesperson

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to know, because there's so many salespeople out there that

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I train that you know, they either go for all

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or nothing, and usually what's in between the all or

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nothing or what end up your biggest clients, your most sales,

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your most average dollars and long term value.

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There you go, totally agree.

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Well, thanks once again for being on the positively Pipeman

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segment of the Inventors of pipe Man right here on

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W four c Y Radio, and we look forward to

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hearing from you again.

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Thanks Dave, appreciate it.

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Thank you for listening to the adventures of Pipemin on

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W for CUI Radio.