Sept. 1, 2025

Upsells Downsells and Cross Sells

One way to increase both the frequency of sale and the Ave dollar per sale is up-sells down-sells and cross-sells.

Become a supporter of this podcast: https://www.spreaker.com/podcast/powerful-business-strategies--6198916/support.

WEBVTT

1
00:00:04.639 --> 00:00:07.759
Hi, you have done to censure.

2
00:00:09.000 --> 00:00:12.679
Wow for you your.

3
00:00:19.760 --> 00:00:23.079
Yo. It's the Pipe Man and we are here a

4
00:00:23.199 --> 00:00:27.879
motivation Monday Positively Pipe Man segment of the Adventures of

5
00:00:27.920 --> 00:00:30.559
Pipe Man right here on W four c Y Radio

6
00:00:31.079 --> 00:00:35.119
and I have our resident expert on business with some

7
00:00:35.359 --> 00:00:39.479
powerful business strategies for us once again. So let's welcome

8
00:00:39.520 --> 00:00:41.079
to the show. Michael Barbarita.

9
00:00:41.119 --> 00:00:42.640
How are you fantastic?

10
00:00:42.679 --> 00:00:43.399
Dean? How you doing?

11
00:00:43.759 --> 00:00:47.799
I'm doing great. You know we got I just got

12
00:00:47.840 --> 00:00:52.200
back in from LA and before that I went to

13
00:00:52.280 --> 00:00:57.079
prison at Shawshank Prison. You know the movie. Yeah, so yeah,

14
00:00:57.520 --> 00:01:00.240
it'll be had to do an event at Shawshank is

15
00:01:00.280 --> 00:01:03.240
in for a festival and as like one of the

16
00:01:03.240 --> 00:01:06.879
coolest venues. So now we're back and we're ready to

17
00:01:06.920 --> 00:01:10.200
share some powerful business strategies. There you go.

18
00:01:11.079 --> 00:01:13.840
So, you know, one of the things that you know,

19
00:01:13.879 --> 00:01:16.920
if you recall from the seventh step profit Formula, two

20
00:01:16.959 --> 00:01:20.640
of the steps and that seven step profit formula once again,

21
00:01:20.760 --> 00:01:23.400
is that twenty percent that business owners should be working

22
00:01:23.400 --> 00:01:26.239
on that drives eighty percent of the revenue.

23
00:01:26.840 --> 00:01:28.280
And two of the things.

24
00:01:27.920 --> 00:01:32.000
That are in are in the seventh step profit formula

25
00:01:32.319 --> 00:01:35.799
average dollar per sale, increasing the average dollar per sale

26
00:01:36.200 --> 00:01:41.400
when per customer, as well as the frequency of sale.

27
00:01:41.439 --> 00:01:44.239
So if you sell to the same customer an average

28
00:01:44.239 --> 00:01:46.719
of two times, got to make it three, got to

29
00:01:46.760 --> 00:01:49.840
make it four. So one of the ways, one of

30
00:01:49.879 --> 00:01:51.959
the effective ways to do this is and a lot

31
00:01:51.959 --> 00:01:56.000
of business owners are missing out on this is cross seals,

32
00:01:56.239 --> 00:01:59.760
up sells, and down cells. Now I'm going to give

33
00:01:59.799 --> 00:02:05.159
you a Donald's example of how that works. But but

34
00:02:05.159 --> 00:02:07.159
but the one thing a lot of business owners are

35
00:02:07.159 --> 00:02:09.159
missing of the down cells. So let me just give

36
00:02:09.199 --> 00:02:11.479
you a quick example. So if you go to McDonald's

37
00:02:12.120 --> 00:02:14.360
UH and you order a hamburger, they'll ask you if

38
00:02:14.360 --> 00:02:16.360
you'd like fries and a coke with that. Those are

39
00:02:16.439 --> 00:02:21.039
those across cells because they compliment your your existing they

40
00:02:21.039 --> 00:02:24.719
compliment the hamburger in this case. And then an up

41
00:02:24.759 --> 00:02:29.960
cell would be uh supersizing it. That would be an upsell.

42
00:02:30.479 --> 00:02:34.639
It would be a high higher not necessarily a higher quality,

43
00:02:34.639 --> 00:02:37.120
but certainly it may be a higher quantity, so higher

44
00:02:37.199 --> 00:02:40.960
quality or higher quantity product or service. And then the

45
00:02:41.120 --> 00:02:47.360
down cell would be like like the Kid's burger, something

46
00:02:47.680 --> 00:02:52.000
something that's below the regular hamburger. So that's that is

47
00:02:52.080 --> 00:02:57.759
basically an example and what's great about it is what

48
00:02:57.759 --> 00:03:01.240
what business owners are. Most business owners are missing. Some

49
00:03:01.319 --> 00:03:03.560
of them have cross sells, some of them up sells,

50
00:03:03.560 --> 00:03:05.719
but very few of them have down cells. When somebody

51
00:03:05.800 --> 00:03:09.759
can't afford something that you're offering, it's always best to

52
00:03:09.840 --> 00:03:13.960
have some type of lower level offering, whatever that may be,

53
00:03:14.520 --> 00:03:18.919
so that it's affordable. Uh if in fact budgetary concerns

54
00:03:19.039 --> 00:03:23.960
are in play. So uh, that's those, So those are

55
00:03:24.000 --> 00:03:27.360
the those that cross sells. Down cells and up sells

56
00:03:27.400 --> 00:03:31.280
are are a critical strategy if you want to increase

57
00:03:31.360 --> 00:03:35.199
frequency of sale as well as average dollar for sale.

58
00:03:36.800 --> 00:03:40.400
So it's it's I mean with respect to with respect

59
00:03:40.479 --> 00:03:44.560
to how that how that strategy fits in. So like

60
00:03:44.680 --> 00:03:46.840
for example, in my let's let me just take in

61
00:03:47.199 --> 00:03:51.960
my business. So we have uh, one of our up cells.

62
00:03:52.000 --> 00:03:55.120
If somebody wants to have CFO services, one of our

63
00:03:55.199 --> 00:03:59.840
up cells is CFO services and strategic implementation that combination.

64
00:04:00.800 --> 00:04:04.560
And then for a down cell if they if they

65
00:04:04.680 --> 00:04:10.240
can't afford either CFO services or strategic implementation, we have

66
00:04:10.360 --> 00:04:14.360
a do it yourself program at a lower price for

67
00:04:14.639 --> 00:04:18.680
strategic im limitation. We even have down cells below that

68
00:04:18.800 --> 00:04:24.399
where we have study guides and workbooks for people who

69
00:04:24.519 --> 00:04:26.839
just want to know about down sales, cross sells, and

70
00:04:26.920 --> 00:04:32.439
upsells for one low price. So that's an example. That's

71
00:04:32.480 --> 00:04:36.920
an example in the service business of utilizing up sales,

72
00:04:37.000 --> 00:04:39.920
cross seals, and down cells, and they can be utilized,

73
00:04:40.040 --> 00:04:44.000
you know, and a lot of the thing is a

74
00:04:44.040 --> 00:04:46.639
lot of the times business owners forget to incorporate it

75
00:04:46.800 --> 00:04:50.439
part of their sales process. When I get a business

76
00:04:50.439 --> 00:04:54.639
owner who's only doing thirty thousand a year in sales,

77
00:04:54.879 --> 00:04:57.519
you know, they're startup, they're doing thirty thousand, I'm not

78
00:04:57.560 --> 00:04:59.600
going to sell them a five thousand dollars a month

79
00:05:00.120 --> 00:05:07.439
CFO services and Strategic Limitation program. Okay, I'm going to

80
00:05:07.519 --> 00:05:11.439
probably either give them the sealth Study our self study

81
00:05:11.600 --> 00:05:16.839
and Strategic Limitation program, which by the way, incorporates one

82
00:05:17.519 --> 00:05:20.519
meeting per month so that we can make sure they're

83
00:05:20.519 --> 00:05:23.160
accountable for what they're doing. Because a lot of business

84
00:05:23.160 --> 00:05:25.600
owners will take the will take the do it yourself

85
00:05:25.639 --> 00:05:29.920
and won't do it themselves. So we give them accountable

86
00:05:31.360 --> 00:05:35.439
with the once per month, and we give them a

87
00:05:35.439 --> 00:05:38.959
whole library of videos and workbooks so that they can

88
00:05:39.120 --> 00:05:44.480
perform these implement these strategies. But if I didn't have that,

89
00:05:45.120 --> 00:05:48.160
or if they someone can't. Maybe someone who's doing thirty

90
00:05:48.199 --> 00:05:50.600
thousand a year in sales can't afford five hundred dollars

91
00:05:50.639 --> 00:05:55.120
a month. I can give them, let's say, a workbook

92
00:05:55.160 --> 00:05:58.560
on how to develop a compelling offer, the five components

93
00:05:58.560 --> 00:05:59.560
of a compelling offer.

94
00:06:00.120 --> 00:06:03.720
So I should be able to sell something that somebody.

95
00:06:04.519 --> 00:06:05.399
That's the whole point.

96
00:06:07.519 --> 00:06:10.399
And I agree with you too. It's like you have

97
00:06:10.519 --> 00:06:12.759
to you can't just be cookie courtory. You have to

98
00:06:12.800 --> 00:06:17.439
customize something to suit the client's needs, you know. So

99
00:06:18.160 --> 00:06:24.000
not everybody wants forget affordability for a second. Not everybody

100
00:06:24.040 --> 00:06:27.040
wants the full service, you know, So you got to

101
00:06:27.040 --> 00:06:30.480
take that into consideration too, That's right, And.

102
00:06:30.399 --> 00:06:32.600
That's I think that's the thing a lot of business

103
00:06:32.600 --> 00:06:38.759
owners miss, you know, because even even somebody who does roofing,

104
00:06:38.839 --> 00:06:42.120
who's just thinking of the big you know, roofing plan,

105
00:06:42.360 --> 00:06:46.120
you know, they can down sell people to repairs, you know,

106
00:06:46.199 --> 00:06:48.319
if they if the people don't have the money to

107
00:06:48.399 --> 00:06:53.160
do the whole roof, they can they can also you know,

108
00:06:53.480 --> 00:06:56.439
just do around the chimney where there's a lot of leakage,

109
00:06:56.519 --> 00:06:59.360
where a lot of leakage, and roofing industry.

110
00:06:59.600 --> 00:07:03.279
There's a lot of leakage around the room the chimney.

111
00:07:03.680 --> 00:07:06.480
Yeah, so they can make for pairs and sure up

112
00:07:06.519 --> 00:07:10.120
the chimney, uh for you know, if if in fact,

113
00:07:11.079 --> 00:07:15.279
you could you potentially keep a roof going another you know,

114
00:07:15.360 --> 00:07:19.000
five or ten years, if you just uh patch up

115
00:07:19.040 --> 00:07:23.079
the weaknesses like the chimney. So that does once again,

116
00:07:23.199 --> 00:07:25.800
if if you don't have that in your arsenal, you're

117
00:07:25.800 --> 00:07:29.040
gonna miss out on a sale. What's the whole point

118
00:07:29.040 --> 00:07:29.759
of beings?

119
00:07:30.639 --> 00:07:33.439
Yeah, And I have another perfect example of somebody I know.

120
00:07:33.519 --> 00:07:36.399
It just happened recently. They're getting new windows for their house,

121
00:07:37.279 --> 00:07:42.639
and so they didn't get all of the windows done

122
00:07:43.319 --> 00:07:47.759
because they couldn't afford the whole thing at once. So

123
00:07:47.800 --> 00:07:50.759
they did pick the windows they wanted to do. But

124
00:07:50.920 --> 00:07:55.360
then they're gonna do the other windows, okay because for

125
00:07:55.439 --> 00:07:58.480
a couple of reasons, like you wind all uniform and stuff.

126
00:07:59.279 --> 00:08:01.480
But they're gonna do it at a time when they

127
00:08:01.480 --> 00:08:05.160
have the money to do those So instead of doing nothing,

128
00:08:05.879 --> 00:08:09.519
you know, part of it's being done now, part is

129
00:08:09.560 --> 00:08:13.439
being done later. And then the company itself still in

130
00:08:13.480 --> 00:08:16.040
the long run, ends up making the money and maybe

131
00:08:16.040 --> 00:08:20.759
even more money because it's done separately, you know, and

132
00:08:21.120 --> 00:08:24.720
so the company benefits opposed to a company's like, no,

133
00:08:25.519 --> 00:08:27.560
you have to get them all at once, and then

134
00:08:27.600 --> 00:08:29.480
they lose us in right.

135
00:08:29.680 --> 00:08:32.440
And and what they'ra and what and what many people

136
00:08:32.519 --> 00:08:36.639
also miss is that thirty four what's a customer buys

137
00:08:36.639 --> 00:08:39.200
to you, there's a thirty four percent chance they'll buy

138
00:08:39.279 --> 00:08:44.440
something else if it's presented to them. So that is

139
00:08:44.519 --> 00:08:47.080
the is the frequency of sale that I'm talking about

140
00:08:47.120 --> 00:08:50.360
where we don't realize that even if we sell a

141
00:08:50.480 --> 00:08:53.279
night of for nine dollars at ninety five cents, that's

142
00:08:53.320 --> 00:08:56.279
a customer, yeah, and that customer has a long term

143
00:08:56.360 --> 00:09:00.000
value associated with it as long as you can see

144
00:09:00.159 --> 00:09:01.320
the market to that customer.

145
00:09:01.320 --> 00:09:05.440
And again that is brilliant because I've done that my

146
00:09:05.559 --> 00:09:08.159
whole career. Where Like even when I used to be

147
00:09:08.200 --> 00:09:12.919
in the investment business, you know, and our firm minimum

148
00:09:13.080 --> 00:09:17.799
was twenty five thousand dollars. Well, some of my biggest

149
00:09:17.840 --> 00:09:21.120
clients in that business were people that I broke that

150
00:09:21.279 --> 00:09:24.159
rule and let them in for four or five thousand

151
00:09:24.240 --> 00:09:28.440
dollars or even less sometimes. But to your point, once

152
00:09:28.480 --> 00:09:32.200
they're a client, you know, then there's that trust in

153
00:09:32.279 --> 00:09:36.960
that relationship that's already there. And the reason those clients

154
00:09:37.000 --> 00:09:40.519
became my biggest clients is because they probably had more

155
00:09:40.600 --> 00:09:43.879
money than the people that were starting with twenty five thousand.

156
00:09:44.399 --> 00:09:47.240
But because they had more money, they want to test

157
00:09:47.279 --> 00:09:48.200
the waters first.

158
00:09:48.840 --> 00:09:49.360
Uh.

159
00:09:49.679 --> 00:09:53.480
So that's amazing. Yeah, I know, And it works across

160
00:09:53.519 --> 00:09:57.279
all industries. It's not you know, it's not industry specific.

161
00:09:57.320 --> 00:10:00.840
We used Hamburgers, we used my business fo services and

162
00:10:00.919 --> 00:10:03.879
strategic im limitation. We use your example in the financial

163
00:10:03.919 --> 00:10:05.559
services industry.

164
00:10:05.600 --> 00:10:06.919
So it worked.

165
00:10:06.919 --> 00:10:11.639
This this formula of upsell, cross sell, and specially down

166
00:10:11.720 --> 00:10:15.960
cell works in all all types of industries and in

167
00:10:16.080 --> 00:10:20.799
all times. So I think once again, uh, it's really

168
00:10:20.919 --> 00:10:25.919
valuable for both increasing the average dollar per sale because

169
00:10:25.919 --> 00:10:30.159
you could upsell, and also the frequency of sale because,

170
00:10:30.600 --> 00:10:32.679
like in the example that I gave you with somebody,

171
00:10:32.759 --> 00:10:35.399
if I was able to down sell somebody all the

172
00:10:35.399 --> 00:10:37.799
way down to let's say the five components of a

173
00:10:37.840 --> 00:10:45.039
compelling offer, workbook and study, once they bought that, you know,

174
00:10:45.120 --> 00:10:48.320
they can now look at how to how to prepare,

175
00:10:48.639 --> 00:10:52.840
how to develop a position of market dominance as another example.

176
00:10:53.320 --> 00:10:58.759
So it's it's it's continuous and and and the relationship

177
00:10:58.799 --> 00:11:02.320
can last for years, and the the lifetime valueble customer,

178
00:11:02.320 --> 00:11:09.000
which is a very important metric to follow, elevates. And

179
00:11:09.240 --> 00:11:11.200
you know, one of the things about the average of

180
00:11:11.399 --> 00:11:14.399
the lifetime valueable customer. When I was in the frozen

181
00:11:14.440 --> 00:11:16.840
cookie dough business, that was a critical metric for me

182
00:11:17.440 --> 00:11:20.919
because my opening order was only fifty dollars. But I

183
00:11:20.960 --> 00:11:24.879
knew that once my customer started buying my cookie dough

184
00:11:25.200 --> 00:11:27.879
that they would continue because I believed in my product

185
00:11:27.879 --> 00:11:28.759
and it was a good.

186
00:11:28.559 --> 00:11:30.600
Product and so.

187
00:11:32.039 --> 00:11:33.919
And that's why I was able to give away a

188
00:11:33.919 --> 00:11:37.240
two hundred dollars confection of it with every opening order,

189
00:11:37.279 --> 00:11:39.480
even though the only opening order was fifty because I

190
00:11:39.559 --> 00:11:41.799
understood that the long term value of my customer was

191
00:11:41.879 --> 00:11:45.799
five brand and so the trade off was two hundred

192
00:11:45.799 --> 00:11:49.799
dollars for five grand. And so it's an easy decision,

193
00:11:49.840 --> 00:11:53.600
And that's why it's an important metric to understand totally.

194
00:11:55.399 --> 00:11:57.480
How do people reach out to you to get more

195
00:11:57.519 --> 00:11:59.279
of this type of information.

196
00:11:59.440 --> 00:12:02.600
Well, go to next Step CFO dot net. They can

197
00:12:02.639 --> 00:12:06.559
download my book for free called Powerful Business Strategies. What

198
00:12:06.559 --> 00:12:08.879
I'd love them to do is to have a book interview.

199
00:12:09.559 --> 00:12:09.679
Uh.

200
00:12:09.799 --> 00:12:11.320
The way they can do that is they go to

201
00:12:11.399 --> 00:12:15.320
next step CFO dot net, forward slash contact, fill out

202
00:12:15.360 --> 00:12:17.679
the contact form and in the message box write the

203
00:12:17.679 --> 00:12:23.000
words book interview and UH love to see what we

204
00:12:23.080 --> 00:12:28.320
do Dean is we update our book every year or so. Why, Well,

205
00:12:28.600 --> 00:12:32.759
you know there's higher you know there's higher higher inflation,

206
00:12:32.960 --> 00:12:38.120
there's there's tariffs now right, there's interest rates, and we

207
00:12:38.200 --> 00:12:40.840
want to make sure we know our strategies work. We

208
00:12:40.960 --> 00:12:43.600
just like industry information to prove out what we already know.

209
00:12:44.039 --> 00:12:47.919
And so what happens is we keep speaking with business

210
00:12:47.919 --> 00:12:52.039
owners to make sure that we uh constantly update our

211
00:12:52.120 --> 00:12:56.120
book and that the strategies for things for those particular

212
00:12:56.159 --> 00:13:00.559
industries are working. Yeah, so uh with we would love

213
00:13:00.600 --> 00:13:01.120
to interview.

214
00:13:02.639 --> 00:13:06.559
Well, that's beautiful. I love all that you what you do.

215
00:13:06.679 --> 00:13:10.279
That's why you're on the positive and positively Pipeman segment

216
00:13:10.879 --> 00:13:14.159
And this one I loved especially because I think is

217
00:13:14.480 --> 00:13:18.399
very important for every business to know and every salesperson

218
00:13:18.519 --> 00:13:22.440
to know, because there's so many salespeople out there that

219
00:13:22.480 --> 00:13:25.240
I train that you know, they either go for all

220
00:13:25.360 --> 00:13:28.799
or nothing, and usually what's in between the all or

221
00:13:28.840 --> 00:13:32.200
nothing or what end up your biggest clients, your most sales,

222
00:13:32.240 --> 00:13:35.720
your most average dollars and long term value.

223
00:13:36.279 --> 00:13:39.000
There you go, totally agree.

224
00:13:39.279 --> 00:13:42.559
Well, thanks once again for being on the positively Pipeman

225
00:13:42.720 --> 00:13:44.799
segment of the Inventors of pipe Man right here on

226
00:13:44.960 --> 00:13:47.639
W four c Y Radio, and we look forward to

227
00:13:47.679 --> 00:13:48.519
hearing from you again.

228
00:13:49.080 --> 00:13:50.360
Thanks Dave, appreciate it.

229
00:13:51.440 --> 00:13:56.240
Thank you for listening to the adventures of Pipemin on

230
00:13:56.919 --> 00:14:04.200
W for CUI Radio.