How To Improve Your Up-Selling and Cross-Selling

Written by Sean McPheat | Linkedin thumb

Upselling word with blue backgroundI read an interesting article by Jim Domanski the other day, where he introduces the ‘rule of 25’.

This rule is good to know when you are trying to cross-sell or up-sell your client.

The rule states that, after people have made the decision to buy, they have accepted they will be spending or investing a certain amount of money. Now, if you have been taught to up-sell or add another product onto that sale, it is unusual for people to spend more than 25% more than what they have just invested.

Don’t ask me why that figure is important…it just seems to be the cut-off point for most customers.

So if your client has already invested £100 in your product or service, asking them to spend more than around £25 more on back-up products or services may prove to be a step too far.

Think about how this ‘rule of 25’ could work with your products. Plan for how this could be used. If you have a extras or services that could be worth your client investing in, think about the extra value they will get from those items or services. And be aware of the initial investment they have made. What could be worth them investing in? How much extra will they have to invest?

Keep this rule in mind next time you are thinking of up-selling or cross-selling. It might help you to gain more incremental sales, and you’ll have the knowledge to know how much farther you could expect your client to go.

Happy Selling!


Sean McPheat

Sean McPheat
Managing Director
MTD Sales Training | Image courtesy of Big Stock Photo

450 sales questions free report

Originally published: 7 January, 2011

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