Down-selling could be a good solution to increase sales in these economic conditions. Why? Because customers would like to spend again, they do so very carefully and with a firm decision not to reach too deep into the wallet.
Many entrepreneurs managed up-selling, i.e., increasing sales. They take a regular product and mark it as first-class with a correspondingly higher price. Think about how just Starbucks did with a cup of coffee normally available for about 50 cents.
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What Is Down-Selling? Opaque Up-Selling.
The term up-selling often coincides with the term cross-selling. Although both of these activities have the same goal, i.e., to increase the customer’s final order, up-selling refers more to an effort to sell a more expensive solution to a customer’s problem, e.g., a higher product model or a more advanced version of the service, as opposed to offering cross-selling. Up-selling on the Internet is often associated with email marketing. If, for example, we know that our customer once bought a consumer product that is no longer one of the most modern at this time, it is only logical to contact him by email with an offer of the latest version. From the above example, it is clear that up-selling places relatively high demands on customer segmentation, quality CRM is a necessity.
Take The “Luxury” of Your First-Class Products.
If your customers have given up premium accessories for basic and more affordable products, why shouldn’t you do the same? It isn’t easy. If you sell too cheaply, you run the risk of eliminating your mark-ups and weakening your brand, as was the case with the American company Martha Stewart (it operates in many areas, including the sale of household goods). Kmart also sold its products. Over time, she found that what had once become a lucrative source of her income had turned, she claimed, into a low-quality brand that had tarnished her reputation.
Smaller Companies Are In An Easier Position To Launch New Products.
Let’s think about it for a moment. You are not Martha Stewart, and you probably do not trade such a wide range of goods and services. Marketers say smaller companies find it easier to quote new prices and respond to customer feedback faster. Be careful not to weaken your brand when lowering costs. You have to be cautious about three things.
Give Customers Something New
You could simplify your existing product by “plucking” it to the bone or using the current economic situation as an opportunity to find a brand new, cheaper product.