Upselling.  It should be sweet music to an owner’s ear.  It is just a nine-letter word, but it actually gets the respect of a four-letter one.  Despite the negative publicity the term upselling was not one of George Carlin’s seven dirty ones you couldn’t say on television.

In its simplest definition, upselling applies to helping a customer decide to purchase beyond what the original sale was intended to be.  This method of selling is one of the highest and most profitable uses of your company’s time.

Whenever I purchase a new pair of dress shoes, the shoe salesman always suggests protective spray, high-end shoe polish, or perhaps a brush to maintain a high gloss on the leather.  My favorite is the cedar shoe-tree to help keep the shape of the shoe over the years.

Shoe Salesman

Being in sales I can truly appreciate an upsell when it is done with ease and confidence.  Over the years I have purchased a number of those products.  These items are much smaller dollar amounts than the shoes but they do add up over time.  Despite the lower cost, the add-ons tend to have much higher margins than the original purchase.  This is why upselling is great for a business to gain and therefore an owner must train the staff to upsell.

The approach to upselling should be easy, almost effortless.  Upselling is just presenting the information in a “by-the-way” assumptive manner to the customer unless:

• You don’t make an attempt
• Your technique makes you seem pushy, arrogant or negative
• Most importantly, you don’t understand what to upsell because you don’t know WHY your customers buy your product to begin with.

In order to upsell, you must understand why people buy.  The focus must be on the customers needs.  The following examples may shed a little different prespective on the aspect of what consumers actually buy:

1. You don’t buy a candle. You purchase ambience or romance.
2. When you buy a book you are purchasing knowledge.
3. Buying a Blackberry provides you productivity.
4. Want mobility? Buy a laptop computer.
5. When you buy coffee, what are you buying? _________________________

No matter what your product is, it has a certain meaning for the customer.  KMO customers sell brewed coffee, and in some instances sell bulk coffee beans. So the question is “Why did your customer buy your coffee or why do they stop by your coffeehouse?” I call this “getting to know the unknown wants, needs and desires of someone you have just met for the first time”.  Once you have contemplated and developed some answers you are ready to move on.

There is no need to develop an over-the-top sales approach. This form of selling up is just a natural progression of providing great service and products to your customers.  The style and finesse in how it is accomplished sets the stage for future successes with that customer and others to follow.

Fulfill those wants, needs and desires now by offering value added items or by packaging some of your products together.  Examples of this could be…

• Have fresh-out-of-the-oven muffins or scones right at your counter to start the morning.  When a customer comes in to buy their morning coffee assume they are really buying a way to start their day and that everyone appreciates a great baked good with their coffee. Talk about how delicious and bursting with fresh blueberries they are and that the crumble topping is your favorite part.  Make a sample available for them to taste.
• If a customer comes in during the afternoon and buys a cappuccino suggest the the freshly-baked chocolate chip cookies which are only $1.50 for three pieces of afternoon delight.  (What they were buying with an afternoon escape from their mundane job)
  

  Prepare for Success!

• Create a commuter special that includes a large coffee, buttered hardroll, New York Times and small orange juice for $4.50.  (What you are offering is added convenience, world understanding, a calm commute even if they get stuck in traffic – all at a value)
• When a customer purchases a pound of coffee, offer them a FREE medium cup of brewed coffee as a bonus. (What is your customer really buying in this case?_____________________________)

Take it step further…

During the holidays, Pete stops by to buy a pound of coffee to take to a friends party…

What is Pete really buying?  Convenience (You were along the way), good taste ( He is buying specialty coffee, not a can of Folgers), perfect gift (Who doesn’t like coffee?), thoughtfulness (Remembered his friends loves Fair-Trade coffee)

Upsell – As Pete is standing there drinking his FREE cup of coffee, you say “I appreciate you thinking about us and stopping by to get coffee for your friends.  So many of our customers are pressed for time, not sure what to get for people on their list, or are trying to save some money this holiday season.  Seems like you may be feeling some of the same pressures.”  (Who doesn’t experience this during the holidays?)

You continue the upsell approach; “We have been quite successful at making the holidays much more stree-free for folks by creating personalized gift baskets and gift mugs that are sure to get a WOW!  I am sure you have a few people that always are tough to buy for.  If you have already bought them a little something, we can even put that in the gift basket and we can  ship anywhere in the country for you”.

Second delivery of an upsell: “We also now have party trays for breakfast and lunch which are perfect gift for a valued client or vendor and we will even deliver it for you”.

Third possible upsell: Last but not least, “We have begun taking orders for our famous Kringle Krunch Pie.  Pete, if you haven’t had a taste of this pie, it’s like missing a chance to taste a slice of heaven.  We sold out early last year and some folks were disappointed they weren’t able to get it.  This is a perfect gift for those last minute holiday invites we all get and you know you have to bring something.  Pete, who does not like pie?  Just imagine the compliments you’ll get when everybody digs into this delectable treat”.

Pete came in for a pound of coffee and you were able to understand the wants, needs and desires to offer time saving, money-saving and compliment-getting options.

Upselling can be extremely profitable for your business – however many owners feel they are the coffeehouse’s only knowledgeable or skilled salesperson and therefore limit their staff to a rudimentarily backup role. The time taken to train your employees in the art of the up sell will be rewarding for both them and ultimately the business.  A compensation program can be developed to reward staff that excels at bringing in more dollars into you business.   By training them well, you also provide yourself with added freedom.

Remember, upselling your products to a customer that is already purchasing your products will help maximize your revenues and profits. Keep your selling process personal and helpful. By making a small effort to understand why your customers buy and suggesting options that will benefit their lives your customers will appreciate the great service and the feeling of being special.

Take it a step further.

Bulk coffee that flies off the shelf is happening across the country as more specialty retailers begin using the new eye-catching Point Of Sales materials available from Kaffe Magnum Opus. It’s said that a picture is worth 1,000 words or perhaps even $1,000 in this case. Customers are utilizing these POS materials to great benefit.

Would you like to:

• Grab the attention of your customers?
• Increase awareness of your bulk & brew coffee program?
• Better educate your customers and your employees about the coffees you offer?
• Substantially increase your sales, in some cases by 50%?

(Hopefully you have answered yes to all these questions.)

KMO has developed a great selection of promotional materials for you to use in your business. The POS materials are offered in different sizes such as, 4 x 6 Airpot Labels, 8 1/2 x 11 Shelf Talkers (which are FREE to you when you purchase the coffee) and 16 x 20 Posters. These items can be used in many areas of your shop, for example:

• Airpots
• Coffee Jars & Bins
• Walls
• Counter tops
• Café tables
• Ceiling danglers
• Storefront Windows

To keep the airpot labels and shelf talkers crisp and stain free, customers have been purchasing the new acrylic display holders, available in 4 x 6 and 8 ½ x 11 sizes. These items are now on sale at KmoCoffee.com under Promotional Materials.  Create a display area that looks clean, uniformed and colorful, and watch your coffee sales begin to soar.

For more information visit http://www.kmocoffee.com/ and for more ideas visit http://www.improveyourprofits.com/ , for up-to-date information on Kaffe Magnum Opus visit www.twitter.com/KmoCoffee or to contact me directly E-mail me at Ciara@KmoCoffee.com

SAY WHAT?  Yes… this headline could be about YOU!

“Local coffeehouse owner turns 75¢ investment into $1,000.00 worth of new business!”

The newspaper business may not be great for the newspaper companies or its advertisers, but for smart business owners, the local paper holds a wealth of potential new customers.  For a yearly investment of $273.75 (that’s 75 cents for 365 editions) you can have up-to-date local leads and prospects delivered to your door in the form of the daily newspaper.  Everyday each freshly- printed edition provides the opportunity to reach out to a score of people and companies that more than likely are unaware of or who have passed by your business time and time again.

By setting aside time daily to peruse each page you will be able to develop a sizable listing of potential new customers to invite to  your business.  Creating a simple marketing campaign directed to these potential new customers will be well worth the time and effort spent the moment they come through your door.

You could quickly increase your traffic by acknowledging and inviting the individuals, couples or groups that have:

• Announced an engagement
• Celebrated an anniversary
• Had a new baby
• Recently purchased a new home
• Received a promotion
• Started a new business
• Excelled with a personal or group achievement
• Displayed a random act of kindness
• Won an election
• Had a positive and heart-warming story write-up

Creating a standard letter or invitation for each occassion or event will allow you to get your information into the mail on a daily basis.  Using a basic Excel spreadsheet will make tracking the invitations and measuring the effectiveness of this campaign relatively quick and easy.

The opportunity to increase traffic volume greatly depends on the number of individuals, couples, or groups that you have uncovered in the paper and invited to come visit your business.  The invitation can be small and personal in nature or can be taken to a much larger extreme.  A FREE breakfast, lunch, drink or dessert is just a few of the simple things that can be offered to honor, celebrate or congratulate them.  Take the time to personally introduce yourself and your staff and express appreciation for them stopping by.  Take this experience to the next level by creating the opportunity to snap a picture of the visit.  Make sure to post it on your website and on your in-house community board for all to see.  Remember to note who, what, when and why next to the picture.

Contact the local paper to make them aware of the event, occasion or celebration and you might just get some FREE press!  An example of this would be “Local Little League Champs Celebrate Victory with FREE Ice Cream from Joe’s Coffee & Cones”.   Not only will the kids love the praise for their accomplishment along with the ice cream, but be sure the parents, grandparents, friends, family and surrounding community will appreciate the fun and spirit the celebration brings to all.  In return for this small gesture of appreciation, your business will have the chance to gain a potential new stream of traffic and revenue and you and your staff will develop a true feeling of connection with the community.  All this from a 75 cents investment…

For more information visit http://www.KmoCoffee.com/ and for more ideas visit http://www.improveyourprofits.com/, for up-to-date information on Kaffe Magnum Opus visit http://www.twitter.com/KMOcoffee or to contact me directly at robert@KmoCoffee.com