5 Ideas for Add-On Items to Boost Your Profitability/?php print $breadcrumb; ?>
You’ve all heard the famous line, “You want fries with that?” from McDonald’s. It’s the classic corporate push to promote add-on sales. When people are in the buying mode during the final moments of the sale, they are excited about the purchase, convinced of their need to buy something at all, and generally less hesitant to add another item onto the current sale. This provides florists a great opportunity to upsell the original purchase by suggesting a complimentary item to go with the arrangement the customer wants.
Here are some ideas of add-on products your staff can use to try to upsell each floral arrangement purchase, boosting your profits.
One balloon should cost $1.25 with the cost of the balloon and the helium. Once you sell them for $3.95 to $4.95 each or 3 for $10.00, you are able to great profit margin.
Plushes are perfect for arrangements going to a child. Plushes cost about $2.50 and can be sold for $5.00, which provides a healthy 50% profit margin…and gift that will bring a child joy long after the flowers have died.
There are two tricks to chocolate. First, you need to secure a source to buy your chocolates at a price 50% lower than the price you plan to sell them for. This can be flexible, but be aware that whatever price you pay the supplier needs to be increased by 50% so that you are able to make money off the upsell.
Once you’ve purchased the chocolate, you need to handle and store it in a place where it can’t melt and isn’t easily accessible by employees who might develop a sugar craving during a long day.
Greeting cards may be a good option for upselling products, provided you can find a source to get a box of mixed occasions and sell them at a 50% profit margin. If you can secure a healthy mix for good prices, these add-ons will be a hit with customers who are purchasing floral arrangements as gifts for an occasion.
Add Three Roses Promotion
Another upsell idea that will be attractive to customers is to offer to add three roses to any arrangement for $10.00. You will be amazed at how many customers will choose to add roses to an arrangement to make it more special. This promotion provides an excellent profit margin because it only requires minimal extra effort to add a few roses to an arrangement you're going to create anyway and only requires a few more flowers that you probably have on hand.
Institute an AAA Policy: "Always Ask for Add-Ons"
Make sure your staff knows that they always need to suggest an add-on or upsell product whenever they are making a sale. As mentioned above, many customers in the purchasing mode and buying gifts for others are open to adding other products to their purchase, but they probably won't think to ask about any other offerings. Therefore, your staff must suggest and explain the value of an add-on for every purchase, even if it's uncomfortable or awkward to do so.
Add-on products and upsells offer a great potential for additional profits for your store because you're selling more products to customers you've already paid to acquire and build loyalty with; all you have to do is suggest another item to help complete their purchase.
ABOUT CHARLEY HOWARD
Charley focuses on the financial aspects of being a florist in today’s environment, providing a basic understanding of sales numbers, cost of goods, labor and payroll costs, operating expenses, the cost of wire in and wire out orders, and other income such as delivery, relay fees, rebates, and commissions.
He arrived in sunny Florida from the frozen tundra of New England in 1991, to work at Kuhn Flowers in Jacksonville Florida as the controller. His prior background was construction and real estate. He also taught at the college level as Adjunct Staff for Post College and Southeastern Community College.