Episode 109 – Up Selling
Today Mike coaches John Sudre of Mass Pro Service www.massproservice.com on upselling his cleaning services to existing customers.
John’s company is starting to offer additional services like pressure washing and he wants to know if an existing customer wants those services, should he charge them separately or offer a package.
First and foremost you must understand your business model and how you make money.
Right now, you need to ask where the bulk of your business is in terms of growth.
One of the benefits to residential clients is you have the opportunity to offer a wider variety of customized services.
With commercial they generally just want the job done one way.
But with residential clients you can offer a good, better, best offers.
The services that you would like to do, is what you put in your better and best.
Like a carwash. There is usually a basic simple wash, then for 2 dollars more you can get foamy soap and 5 dollars more you can get your tires shined.
BONUS TIP: You can make a lot of money on the upsell.
So with the good you could just offer interior only. Then with the better you can include an exterior window wash with carpets quarterly and so on.
The key is it’s the same price every month, so they are paying more per month for quarterly services rather than having to try and sell them on your services over and over again.
You look at the services as an annual solution and then divide it up into an annual price and divide it by 12.
The big thing you need to worry about is scope creep. You need to be very clear on what you will and more importantly won’t do in your offerings.
It also benefits you later when you customer wants you to do something that isn’t in your scope, you can refer back to the conversation you had about good better and best and even upsell them on those upgraded services at that point.
This way you are moving away from one time cleanings and special offerings to consistent income.
When you think through your offerings ahead of time and can present them to your clients you take out the stress of having to come up with a good cleaning plan themselves.
It gives them confidence in your ability to do the job well and that they are in good hands.
What about giving discounts to “local customers”?
BONUS TIP: You can’t give excellent service to those customers if you don’t have the money and extra resources.
Don’t undermine your service by price cuts. Give excellent service for what you are paid and your business will thrive.