Add-on sales can increase your profitability

add on sales increase your profitabiity_HFA blog

As you are looking to improve your profit margins, you should look beyond your core products. Selling add-on products or upselling often proves profitable, yet many retail salespeople fail to take advantage of it.

Add-on sales help retailers sell a more comprehensive range of products beyond the initial purchase the customer originally intended. Effective add-on selling should be easy and seamless so as not to distract from the primary shopping goal. It should encourage conversations with customers, giving them a good impression about your store and creating more loyal customers. Helping your customers “win” with add-ons that enhance their experience is essential for increasing customer lifetime value.

Common add-on sales for furniture retailers

An excellent way to sell more products is by asking questions. Salespeople should ask about the needs and wants of customers, their lifestyle, and how the product will be used, which may lead them down a path where they need other related items too. If a customer comes in for a sofa, they could be sold other accessories that complement the room, artwork, rugs, lighting, and pillows. With a bedroom purchase, you can offer mattresses, linens, and mattress pads. They could need warranty products like fabric protection and extended service agreements based on their lifestyle.

Tips for salespeople to increase sales items

The key to selling add-ons is not telling people what they want but showing that you understand their needs and providing a solution. The following strategies can help you increase your client’s satisfaction and make them more likely to buy additional products or services from you:

Know your inventory

By reviewing your inventory, you can provide add-on suggestions that are innovative and useful. You might find it helpful to check your inventory for the following regularly:

  • Price – What is an appropriate price point? Often customers don’t know what they want until later when deciding between two options or products.
  • Color – Can I offer more than just what is on the floor?
  • Size– How big is the room, and will the product they are looking at fit, or do you have a comparable item that will fit better?
  • Material Options – Is there anything special about either material used or lifestyle that will make another product a better choice?

Make your customer comfortable

It’s always best if you are honest and forthcoming with your customers. They will appreciate the transparency and trustworthiness of their purchase decisions are made easier because they know what to expect from you – not only now but also in future interactions! A casual conversation can lead to an add-on sale without even realizing it; addressing all questions truthfully builds relationships which makes potential new buyers feel more at ease when deciding on something big like adding another piece, accessories, or warranties.

Mention sales and discounts

The power of a discount is undeniable. Informing customers about add-on items that are on sale or come at discounted prices with any purchase can increase the likelihood they’ll make an additional sale, especially if you know what’s available for promotions and discounts. By keeping this information close to your chest (and having it displayed), people will feel more trusted by knowing exactly where their favorite pieces came from. But don’t forget those old favorites either. Let them see how much value there isn’t when shopping around online without all these added costs attached.

Be subtle

When attempting to sell an add-on product, it’s important to be subtle. Many customers respond well to more subtle suggestions rather than feeling like they’re being pushed toward a sale. By implication, they may feel that the add-on is a great complement to their purchase instead of feeling like they’re being pressured into buying something they don’t need. This can be accomplished through sales techniques such as not overtly talking about the add-on until after the customer has made their decision or by pointing out how the add-on would be useful without putting too much emphasis on it. Ultimately, selling an add-on product is all about finding the right balance. Be suggestive without being pushy.

Assume the sale

Assuming the sale is a great technique when helping customers make their selection. By assuming they have already agreed to purchase the main product, you can guide them towards choosing the add-on. This technique could increase the likelihood that the customer will buy both items. For example, if you’re helping someone choose a sofa, you can assume they’ve already agreed to buy it and then guide them towards choosing matching rugs or lighting. This technique works for any purchase, from big-ticket items like furniture to smaller items like electronics. So next time you’re helping a customer make a selection, try assuming the sale and see what happens!

By helping to train your salespeople to sell add-ons and increasing their average ticket, they will help improve your overall profitability and ultimately increase your customer’s loyalty if their technique is successful.

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