Wunderlich

Having recently gotten engaged, one of my employees was in the market to purchase a diamond ring. She and her fianc went to the local mall on a Saturday to shop for an engagement ring. The jewelers in the large department stores tried to sell her rings that were enormous, not her style nor in their price range. Next, they went into a specialized jewelry store in the mall and had a similar experience. On the way home from the discouraging trip, they remembered that a friend of a friend had recently graduated from gemology school (Ill call her Sarah), and had started working in a family-run jewelry store not far from where they were, so decided to stop in for a look.

Sarah, ever so chicly approached them with a slightly different sales approach, and they walked out with a ring. During their meeting, Sarah listened closely to them describe the style that they liked, and then showed them what she was capable of and what she could do in that style while staying within the aforementioned budget. They were so pleased with the meeting that they told her of the horrible experience at the mall. She laughed and said that many salespeople in the jewelry industry use the Sell Down in order to Sell Up technique, but that most neglect to personalize the technique based on their clients unique needs.

She went on to explain that a generic Sell Down to Sell Up strategy involves presenting the highest end items to a new prospect first, and then continuing to step down in price until hitting something in their range. She said that it can be very effective in that you usually stretch the budget of the customer beyond what they originally came in wanting to spend, because you stretch their imagination of what they could afford by starting with your top dollar items. In gemology school, she had heard people speak of this technique, but when she came to work at the family-run store, she found that one of the reasons they had so many loyal repeat customers was because they really listened to their clients needs and preferences.

So, Sarah altered the technique slightly to fit the personality and culture of this small business. Instead of showing something way out of the customers price range and slowly working her way towards the intended budget, she spent more time up front asking questions about what they liked and didnt like and why. She invested in the relationship up front, and then customized her offering based on what she heard. While she still started high, and worked her way down, she was more of a realist and liked to qualify her buyers before starting her sales pitch. Armed with the knowledge of the style and budget of her customers, she could chicly sell up, without scaring them off with the Hope Diamond. She confided that in her sell down, she usually got people to spend their max amount or a little higher, but because they personalized their approach this store, also had significantly less returns or exchanges due to buyers remorse than the larger chain stores who used the generic Sell Down to Sell Up.

As a chic entrepreneur in a rapidly changing, virtual business world, sales are the lifeblood of your business. The next time you have a new prospect, try using Sarahs chic version of the Sell Down to Sell Up technique. Its chic to be realistic when satisfying your clients needs, but it is also chic to stretch their imagination about what they want. After asking the right question, start slightly higher than your prospects budget and show them the best match for their needs at that level. If you get a no, systematically work your way down, asking questions along the way to isolate what is most important to them, and letting go of the lesser value features. This will help you maximize the dollar value of the sale and maximize the value that the customer receives. As a side note, your pricing structure should be such that the more a customer spends with you, the more value they receive.

This is the way you will build lasting, long-term customer relationships, which are much more profitable than just a lot of quick hit sales. As clients get to know you and increase their level of confidence in your services, this method will likely to strengthen your relationship and keep them coming to you as a trusted partner who always strives to maximize the value they receive as a customer. For more information on how you can maximize your business potential, visit www.flourishingbusiness.com

Elizabeth W. Gordon, founder and President of The Flourishing Business, LLC, is a visionary leader who has a passion for helping others achieve their entrepreneurial dreams and enjoy more of the best in life. With a vast and diverse background in many business arenas, Elizabeth regularly has the opportunity to share her business acumen with clients, large and small. She currently serves on the Board of Directors of the National Association of Women Business Owners (NAWBO), Atlanta and the Board of Directors of the American Association of University Women (AAUW) Atlanta. She is an Accredited Executive Associate of the Institute for Independent Business (IIB) and a certified Life Coach.