The profit-maximizing power of the upsell
Contributed by Jay Smith, Twister Display
If you are in the party rental business, you are in the business of fun. But it's still a business,
which means it's all about making money. When people think of maximizing profits, most
people think about simply raising prices. But what if you can't raise your rates because of the
economy? Or what if you have a competitor who is constantly undercutting your rates? How
do you stop the downward spiral? One highly effective method for increasing profits is called
"up-selling". Go into any fast-food restaurant and order just a hamburger and what are you
invariably asked? "Would you like fries with that?” Order and pizza, and you get, "Would you
like to add on an order of bread sticks?" It's a proven fact that customers are far more likely to
increase their purchase while already in a "buying mood". So when a costumer books a
bounce-house, what's your up-sell? Why not offer some of our fun and exciting frame games
as add-ons? Why not say to your customer, "OK. We have your bounce-house booked for the
younger kids. Now what games would you like to add on for the older kids and adults?”
According to Dr. Jon M. Hawes, director of Akron University’s Fisher Institute for Professional
Selling, “Up-selling spells the difference between ‘just getting by’ and having a very profitable
year.” Let’s look at a very realistic, hypothetical example…
Josh and Amber own and operate a small party rental business -- J & A Party Rental. Until
recently, they were getting only $150 for a 2 hour bounce-house rental. Because of
competition, they thought there was no way to raise their rates. However, by making a small
investment in a dunk tank and a couple of fun games, they were able to put together a nice
rental package which includes a bounce-house for the youngsters and a dunk tank and games
for the teens and adults. This package rate is $300. Last year they booked 100 rentals at $150.
This year they still only booked 100 rentals, but 75 of those they were able to up-sell to the
package deal. They were able to increase their revenue from $15,000 last year to $26,250 (25
bounce-house only bookings and 75 package bookings). Plus, they picked up a dozen dunk tank
only bookings at $200. This added an additional $2,400 for a grand total of $28,650. Josh and
Amber increased the revenue by $13,650 without adding any expensive inflatables!
Here are some tips for effective up-selling in the party rental market:
1. From the very beginning of your conversation, gather as much information as possible from
your customer in order to get as complete a picture of their needs as possible. Let’s say
someone calls and asks, “How much for a bounce-house for my daughter’s birthday party?”
Instead of just stating your rates and hoping for the best, try asking a few questions fist. For
example, “How old is your daughter going to be?” “How many party guests?” “Are all of the
guests around the same age, or will there be some older or younger kids there?” If you
discover that there is going to be a wide age range at the event, it’s the perfect opportunity to
suggest a package so that there is something fun for all ages. If there is going to be more kids
than the bounce-house can accommodate at one time, adding on games to keep all of the kids
busy makes perfect sense.
2. Always remember that your product isn’t simply a bounce-house rental. Your product is a
complete, friendly, safe party experience for all party guests of all ages. Don’t think of yourself
as increasing your profits. Think of yourself as increasing your customer’s satisfaction, because
you are.
3. Rather than asking an open-ended question like “Would you like anything else?”, make a
very specific suggestion based on the information you’ve gleaned during your interaction with
the customer: “Given the fact that you are expecting 30 children at your party, you may want to
consider our ‘Party Package C’ which includes our largest bounce-house and 4 games. That way
you can keep all of the kids busy. Plus, at least one of these games could be for the teenagers
and adults.”
4. From the outset assume that the customer is going to want what you are up-selling.
Consider a waiter who asks, “Would you like dessert?” Now consider a waiter who says, “I’m
sure you’ve been studying our famous dessert menu, so do you know which one you’re going
want to try?” Which waiter do you think will have greater success in selling desserts?
5. Remember, you’re not selling the cheapest rental rate (even if your rates are the lowest); you
are selling the best value for the money.
“So where do I begin?” you may be asking yourself. Well, one source for excellent, low cost
add-on items is Twister Display. They have been a supplier of dunk tanks and games to the
party rental industry for over 25 years. Give them a call at: 1 800 637-3656 or visit their
website at: www.twisterdisplay.com and tap into their years of experience in the industry.
Plus, in addition to their fun games for all ages, Twister Display can also provide help with your
marketing needs.
Put the power of the up-sell to work for you and maximize your profits!