Add-On Sale

Posted in Marketing and Strategy Terms, Total Reads: 692

Definition: Add-On Sale

Add-On Sale is the process of selling products or services to the customers additional to the ones which they meant to buy at the time of purchase.

Add-On Sale normally takes place when the respective customer has decided to purchase an item or service and the salesperson or the service provider suggests a supplementary sale to the core one. Add-On Sale is also known as cross selling and loading. The purpose of Add-On sale can either be to drive in more profits or helping the customers to choose better thus driving more value. Add-On sale should not be confused with upselling as in upselling the customer is motivated to purchase an upscale version of the product or service and not an additional product.

Note that Add-On sale directly relates to the purchase and the added item costs less than the core item. Understanding the consumers’ needs is pivotal for effective Add-On selling. Staying aware of the customers’ needs helps the salesperson or the service provider to provide the options for appropriate Add-Ons. The primary benefit of Add-On selling is to increase the items purchased thus increasing the total purchase amount. Also customers sometimes view Add-On sale to be useful and of good service thus and tend to return to business in future. To make the Add-On sale to be effective it should sound like a solution to customers’ problem and not an additional sale. The salesperson should explain all the available Add-On options to the customer carefully and elaborately so that they can make an informed choice.

For example:

1. Selling a mobile phone cover or a screen guard in addition to a purchase of mobile phone will be an Add-On Sale.

2. Providing an extension of warranty or a tech-support package with a purchase of software is also an example of Add-On Sale.



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