Second Sale Economics

Second Sale Economics

Closing deals requires time, energy and effort. One of the fastest, most profitable way to generate additional revenue is to maximize the first sale with a second one. A second sale is performed by way of cross-selling or up-selling. For consumers, an example of cross-selling would be adding fries to your meal. An example of up-selling would be super-sizing your meal. For enterprise customers, cross-selling would be adding a support contract to software. An example of up-selling would be positioning the premium edition of software versus the standard one.

Why is the second sale so important? Second sales can increase the average deal size with minimal effort. Buyers often use the second sale to justify the first one; e.g., adding support reduces the risk of purchasing software. Packaging products can also increase your value proposition; e.g., buy both products and receive X% discount. Repacking can also increase value; e.g., offering support on a per incident basis versus a fixed amount. The majority of salespeople miss the second sale – do not be one of them. Remember, second money is easier than first money.

All contents copyright © 2013, Josh Lowry. All rights reserved.

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