3 Simple Steps To Make 30% More Revenue From Upselling
Identify high profit margin services, consider market demand and report on upsold add-on services separately.
It’s about adding something extra to your clients’ appointments, like a $20 repair treatment, which is not too much extra for them, but significantly beneficial to your bottom line. When you’re upselling high profit margin add-on services to 10 clients per day you’ll see a significant increase in sales revenue.
Let’s unpack 3 steps to help you get the most out of upselling.
1. Identify services with a high profit margin
Generally a 30% profit margin is considered high. With that in mind, work backwards — how much extra (on top of their existing appointment) would your clients be willing to spend? $20? Ok, so you need to identify a service which you can sell for $20 and still make a 30% profit on. So, in this case you’d pick a service which costs you around $14 (includes product cost, staff wage etc), give it a markup of even 40% and you have your $20 retail price — gross profit margin is around 30%. Nice.
2. What’s the market demanding
It’s best to consider what services are relevant now. What are your clients are wanting? What’s trending? What’s relevant? For example, if it’s winter, consider upselling services that increase hydration for dry skin or hair. Make it an easy sell for you and your staff by picking add-on services that are a no brainer for your clients.
3. Separate out your add-on services for easy reporting and analysis
Once you’ve identified the services you want to upsell, create them under the Value Add service category in your Simple Salon account. The Value Add feature allows you to see at a glance how much revenue you are making from these specific add-on services. You can also track operator performance using the figures which are collated in the Operator Report. By referring to the Value Add column for each operator, you can see how many Value Add services they are upselling and how much extra revenue they are making for the salon.
3 Simple Steps To Make 30% More Revenue From Upselling
Identify high profit margin services, consider market demand and report on upselling services separately.
It’s about adding something extra to your clients’ appointments, like a $20 repair treatment, which is not too much extra for them, but significantly beneficial to your bottom line. When you’re upselling high profit margin add-on services to 10 clients per day you’ll see a significant increase in sales revenue.
Let’s unpack 3 steps to help you get the most out of upselling.
1. Identify services with a high profit margin
Generally a 30% profit margin is considered high. With that in mind, work backwards — how much extra (on top of their existing appointment) would your clients be willing to spend? $20? Ok, so you need to identify a service which you can sell for $20 and still make a 30% profit on. So, in this case you’d pick a service which costs you around $14 (includes product cost, staff wage etc), give it a markup of even 40% and you have your $20 retail price — gross profit margin is around 30%. Nice.
2. What’s the market demanding
It’s best to consider what services are relevant now. What are your clients are wanting? What’s trending? What’s relevant? For example, if it’s winter, consider upselling services that increase hydration for dry skin or hair. Make it an easy sell for you and your staff by picking add-on services that are a no brainer for your clients.
3. Separate out your add-on services for easy reporting and analysis
Once you’ve identified the services you want to upsell, create them under the Value Add service category in your Simple Salon account. The Value Add feature allows you to see at a glance how much revenue you are making from these specific add-on services. You can also track operator performance using the figures which are collated in the Operator Report. By referring to the Value Add column for each operator, you can see how many Value Add services they are upselling and how much extra revenue they are making for the salon.