7 Tips to Boost Revenue for Your Automotive Shop

21 Apr 7 Tips to Boost Revenue for Your Automotive Shop

If you’re the owner or sales manager of an automotive shop, you’re always looking for ways to sell more. And two of the most effective tools in your toolbox are upselling and cross-selling. So what’s the difference?

In a nutshell, an upsell is when you sell a bigger or better product to a customer who’s already buying. If they agree to a product upgrade or to extra add-ons, that’s an upsell. If you sell them more products that are different but similar to the original purchase, this is known as a cross-sell. Both are similar since they involve selling more to a customer, and both have huge potential of increasing your revenue. According to Marketing Metrics, your chances of selling to existing customers is more than 50 percent higher than selling to brand new customers.

So what steps can you as a leader and your sales team take to be doing more upselling and cross-selling at your automotive business? To get you started, here are seven useful tips:

  1. Keep your upsell choices limited. The more choices you have, the more likely your customer will be overwhelmed and walk away. Always keep your upselling options limited and never exceed three choices. Your customer is already buying, so don’t overdo it.
  2. Try bundling. Packaging options together is a great way to cross-sell, especially if you’re offering a discount by bundling. Aside from saving the customer money, this also allows them to make one neat purchase instead of several. Amazon is the master of bundling similar products, so become your own expert of which products generally go together.
  3. Know your customer. You’re already a veteran of the automotive industry, so draw on your experience to know what your customers want. What services do they usually purchase together? What problems do customers generally encounter and how can an upselling or cross-selling remedy this? Show your customer that you’re conscious of their needs.
  4. Follow the rule of 25. It’s a standing rule that you should never try to upsell or cross-sell something that costs more than 25 percent of the original purchase. Your customer has already given you a price range with their original purchase. If you stick to that range within a 25 percent margin, your chances of a successful upselling or cross-selling go up dramatically.
  5. Pay attention to the season. Certain items sell more easily at certain times of year, so be aware of times when upsells and cross-sells will be easiest to make. For example, prom and homecoming season could be a great time to offer interior detailing packages to customers who want their cars to look nicer.
  6. Offer punch cards. How many “buy x, get y free” frequent buyer cards do you have in your wallet? You too can use this strategy by offering your customers your very own punch card before they leave. It could be the difference between a customer biting or walking away, and it will keep your customers coming back over and over again.
  7. Remember that cross-selling can happen at any time. Convincing your customer to buy more doesn’t have to happen in your brick-and-mortar store. By collecting your customers’ contact information, you can offer them a deal on their birthday or when they’ve reached an important customer milestone. Do what makes sense for your specific audience.
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