Upselling Case Study

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Opportunities for upselling come along all the time in the restaurant and unless you and the staff take advantage of them, you are letting money “walk out the door”. Today I wanted to give you some information on how to capitalize on these opportunities to make you more sales, combined with having the right training tools will get you the results you require. Upselling tries to convince customers to buy extra menu items or upgrade their current purchase. “Would you like fries with that?” is the classic example. Sometimes, upselling is also known as suggestive selling. Since the wait staff is not practicing upselling, it is time to show them how. Upselling is one of the quickest ways to improve profits without spending any extra money.
Our job is to train the wait staff to help improve profits by encouraging customers to purchase the following items: cocktails
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It is so many unrealized upsell opportunities. Let us assume that your average customer spends $25 on each visit. If employees are trained to refer customers to other products, upsell, and apply other simple strategies, they can realistically increase that average ticket to $28. Let us further assume that you have 40,000 customer transactions a year. If you can train your team to increase the average per-customer ticket from $25 to $28, you will increase annual sales from $1 million to $1.12 million. Which is cheaper, losing $120,000 in sales or investing in training?
Another cost to think about is lost Customers. If your company does that same $1 million in annual sales and your customer retention rate drops 5 percent, your company would lose $50,000 in sales. Yet the right kind of training in areas likes sales and customer service has been shown to retain many more customers. Again, it is doable, and the result can be a big improvement in profitability. Which is cheaper, losing $50,000 worth of customers a year or

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