A while back we talked about lead magnets and their role within an online funnel, and how you can use them to push prospects towards your products.
Today we are going to be looking at maximising profits by offering additional products after they have purchased the core product.
So without further ado, let’s get stuck in.
You may be surprised to find out that profit maximisers play a big part in many businesses, even gigantic global brands like McDonalds.
McDonalds makes barely any money by selling the hamburger. (The core product) In fact, they make roughly $0.18 profit on a $2.09 sale. If it wasn’t for the profit maximisers, (the chips and the drinks) they would struggle to stay in business.
Many smart businesses will undercut the competition by selling their core product at a cheaper rate than their competitors in order to drive them out of the market.
But, they manage to still make a good profit because they up sell their customers on to additional products or services once they have them in the door.
McDonalds makes roughly $1.32 profit on the chips and the drink. (Which can be considered as the up sell.) This is obviously a big difference to the $0.18 profit on the burger itself. In fact, it’s $1.14 more!
McDonalds use a cheap core product to get people in the door, and then make the real money through everything else that their customers buy.
So, take a look at your business and your products and figure out how you can use a profit maximiser to increase your profits.
For online products, it might make sense to consider splitting up your core product and actually offering it as something separate.
You might also want to consider a membership site as a way of stacking recurring revenue on top of your core product.
Whichever way you look at it, your existing customers are your best prospects because they already know, like and trust you! If you are not actively seeking to sell more to your existing customers, then you are doing something terribly wrong!