127,500,000 million gallons of water "leak" right through Hoover Dam every year. That's enough to fill 8,395 swimming pools. This water seeps unnoticed, silently, invisibly, through 7 million tons of concrete. Yet, this gusher is invisible to the naked eye. Your pizza business also has a leak.
It's leaking cash, and lots of it! I'm going to show you how to harvest the hidden cash that doesn't appear on any balance sheet…that not even the best-trained accountants could ever find. Every business has it, even yours.
Where is this mountain of money hiding? Right there in your customers' wallet, and they are eager to spend it! They just need a little help. And, you're going to provide that help through precise, proven, scientific means. Complicated? Not at all.
Upselling is the easiest way to generate more cash in your pizza business because it is practically effortless. It's done after the customer has already decided to buy from you. Most pizza shops can easily generate an extra $7,000-$37,000 every year just from upselling.
The truth is, it is a clinical and statistically proven fact that 30 to 67 percent of all people can be up-sold at the time of purchase. Of those, ticket increases of 15 to 25 percent are commonplace. They have already picked you. Their money is on the table. They are in "buying mode." They are HOT!
But many people either offend customers by being too pushy, or leave money on the table that customers would have willingly spent. Both options are costly.
Here's the secret…buying mode takes place in the emotional right half of the brain. Pondering questions is a left-brain activity. Why is this important? Because saying something like, "would you like the extra large?" will kill the upsell because you are asking a question.
You have interrupted their pattern – as they switch over to a different "state" of mind to process the question and answer you. You have unintentionally snapped them out of "buying mode." Any chance at up selling has been greatly diminished.
Buying mode is similar to that trance you get into on the drive home. You arrive home fairly unaware of the details of the drive unless someone honks or swerves in front of you. So, avoid asking "upselling" questions. It's the same as honking your horn during the buying process. But be suggestive. When people are in buying mode, they are very "suggestible."
In fact, people like to BUY. It's fun for them. They are in control. People DO NOT like to be sold because they are not in control. The minute a person perceives that they are being sold to, they put up the defenses. So, sneak past those defenses by avoiding words that raise the caution flag.
Here's the exact technique. The customer calls and says: I'd like to order a pizza with pepperoni, mushrooms and green peppers. Right there is the time to say: "Extra cheese on that?" Raise the pitch of your voice on the word "cheese." And say the sentence as an assumption that they want extra cheese.
Again, if you were to say: "Do you want extra cheese on that?" You cause the customer to stop and make a decision. This "interrupts" the buying sequence. And their thought process will be: Do I want extra cheese? What will it cost me? Is it worth it?
A confused mind always says NO.
"Extra cheese on that?" With the higher inflection at the end makes the phrase sound like everybody gets extra cheese. And, it flows without causing a pause in the order taking.
Also note that this customer did not specify a size. So, let's take the conversation further.
Customer: I'd like to order a pizza with pepperoni, mushrooms, and green peppers.
You: Extra cheese on that? Customer: Sure. You: That's a large?
After the order has been placed and the upselling has been done you may now ask a very profitable question. It is: "What else can I get for you?"
This question causes an automatic "mental movie" to play. The customer visualizes the experience they are about to have and searches their mind for any "missing" items. You'll find people blurting out things like, "Do you have any root beer?" or, "What kind of salads do you have?"
"What else can I get for you?" will generate more sales. "Is that everything?" will generate no sales.
Three Rules for UpSelling Success
- "Tell, then sell." Do not attempt to up-sell until you have the main sell. Many people start talking about the add-ons before the customer has even made a commitment to the original purchase. Don't make that mistake. Let them get into full buying mode, and then do your upselling.
- Upselling should not increase the original purchase by more than 25 percent. If they're ordering a $15.00 pizza, you can bump it to $18.75 before you run into resistance. People do have a mental limit as to how much they will spend. So, just because they are in "buying mode" doesn't mean they've gone insane.
- The upsell item must have a direct correlation to the item being bought. Some shops have a pretty extensive menu. If the customer is ordering pizza � don't try to up sell a hamburger. Keep it to pizza related items.
Start upselling today! Even modest results will pay for a nice vacation.
Let's say you average 300 orders per week. And, let's say you only up sell 20 percent of them. Remember, you should be able to hit at least 30 percent. Anyway, 30 extra cheese pizzas at $1.50 = $45.00. Thirty up sells from a medium to a large at $2.00 = $60.00. $60.00 + $45.00 = $105.00 per week. Not a big deal – yet.
But, a measly $105.00 per week adds up to, $5,460.00 per year. Of that you should expect at least $4,095.00 to drop to the bottom line after food cost. Here's the proof below. And,this is just "extra cheese" – nothing else. See you in Maui.