Too many small business people spend inordinate amounts of time and money trying to increase their profitability by attracting new customers, when all along they’re allowing a goldmine of profits to slip by right under their nose.
What is a Bump?
On each and every transaction you have the opportunity to increase your margins dramatically with a simple “bump” or “up-sell”. Bumps are offers made at the point of sale by giving a simple suggestion.
For instance, when I’m on the road, one of the easiest places for breakfast is McDonalds. I always order a Sausage Muffin and a flat white and each time I go to order, the counter person asks me if I’d like to have the large coffee. Errr, yeeesssss. This is a good example of a bump.
Bumps Add Up!
Although it only amounts to an extra dollar in revenue for that order, on an annual basis McDonalds rakes in millions of dollars based on that one simple suggestion. You see, an important sales principle to understand is that when people are in the act of buying something, they are in the buying mood and are highly susceptible to buying more.
This is especially true if you’re giving a related offer. Why wouldn’t your customer want to buy more of what they’ve already decided to buy, especially if they can do so at a heavy discount?
Nine Simple Ways to Create a Bump
Bump # 1: Unbundle your product or service and offer one of the pieces of your bundle to create a bump.
Example: Unbundle a training kit and offer one of the CDs when selling the training kit.
Bump # 2: Offer instructions on how to use your product on DVD, CD or a manual.
Example: An instructional DVD when selling a new lawnmower or vacuum cleaner.
Bump # 3: Offer additional tools to make your product or service easier, faster and simpler.
Example: A hands-free car kit when selling a mobile phone.
Bump #4: Offer a low-priced complimentary product.
Example: A hand shovel when selling a full-sized shovel.
Bump #5: Offer an extra unit of your product or service.
Example: Two pans instead of one.
Bump # 6: Offer something to clean your product.
Example: Lens cleaner when selling sunglasses.
Bump # 7: Offer a consumable product.
Example: A set of DVDs when selling a DVD machine.
Bump # 8: Offer a “secrets of” special report.
Example: Secrets of Do-It-Yourself Beauty Makeovers when selling a haircut.
Bump # 9: Add extra shipping and handling
Example: Add a shipping and handling fee 20% above the actual cost.
Give some thought to what Bumps you have, or could have, and start trying them out. You'll be VERY pleasantly surprised!