The art of the upsell and how it increases long-term revenue
Sydney, Australia – March 2019: It is common knowledge that for print resellers, upselling machine models to customers undoubtedly equates to an increase in upfront revenue, however the lasting financial benefit comes through the retention of customers through the repeated sale of genuine consumables.
Experts at Brother International Australia explain that the most effective way to secure an ongoing revenue stream from a single customer, and therefore maximise opportunity for a reseller business, is to focus on upselling customers to products that have a higher attach rate. When selling a printer or multi-function centre, there is an attach rate on each product - this being the ratio of consumables expected to sell because of a device being purchased. Typically, lower end printers and MFCs have a low attach rate of consumables over the life of the machine, however, as customers look at purchasing a mid- to high-end machine, the attach rate increases as the print volume increases, and resellers can see a higher return for their efforts in upselling and servicing higher print volume customers.
“When a customer commits to spending more on a high-end product, they are far more likely to invest money to maintain the machine on a long-term basis”, says Julie Woodward, National Channel Sales Manager, B2B at Brother International Australia.
“To put it simply, an upsell is not just about increasing your revenue upfront, it is also about fostering a revenue stream for your business that is ongoing. Focusing on products that will require customers to purchase and repurchase consumables will do just that. It’s simple consumer psychology – customers who spend more now, are more likely and willing to spend more later on, as opposed to simply replacing the machine itself.”
In addition to the increase in attach rate, selling high-end models also proves to have a positive environmental impact. As a lower attach-rate implies, these machines tend to be disposed of after one or two uses, as it is more cost efficient for the customer to replace the machine. This machine will end up in land-fill, at a detriment to the environment. Machines that encourage the replacement of consumables are more likely to be retained by customers over a longer period of time, consequently reducing waste through the minimisation of machine disposal.
The lesson to be taken is that resellers who are able to encourage customers to buy higher end products are more likely to lock that customer in for the long haul and retain ongoing consumable business from that customer. Higher range products provide the added benefit of lower running costs, so it is a more cost-effective option for customers once they choose to invest more for a machine upfront. These machines are also far more environmentally friendly as they encourage the replacement of consumables, as opposed to the frequent disposal of the machine. By having customers move up the range, resellers have a greater ability to capture customer consumable sales and maximise the return of each machine sold, while also doing their part to minimise waste.
Resellers are also encouraged to stock and endorse genuine consumables products to their customers. To reward resellers who buy the real deal, Brother is giving these partners the chance to win one of several once-in-a-lifetime experiences! To learn more, or to register for Brother’s ‘Real Deal’ Promotion, visit brotheratyourside.com.au.
Available: Brother Dealers
Phone: 1300 885 989
Email: corporatesales@brother.com.au