The Breakdown Method of The Up-Sell: Verbiage!

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Most of us in sales have been here at one time or the other.
A situation where we have a client whose wants surpass the amount they want to spend.

Let's clarify the situation...

This client has set their budget set below what they CAN spend.
They have the means to spend more but they do not want to.
That is understandable.
The problem with this situation is you are not able to provide both what they want in a home AND stay in that price range.

Let's say for the purpose of making this easier to picture in our minds that the ideal home for this client is 30 thousand more than the amount they WANT to spend.

Here are the facts:
They want to stay at a top price of 270 thousand dollars.
They CAN afford a top out price of 350 thousand dollars.
The difference is 80 thousand dollars.
The clients are looking for a home they plan on spending at least 7 years in.
This would get the clients to the point where both kids have left for college.
Their long-term plan after this home is to downsize.
They homes that they have loved are over 300 thousand but the price tag with a 3 in front is what they cannot get comfortable with.
They see the features in the more expensive home but they cannot bring themselves to feeling justified for spending more than they originally intended.
They feel better having most of their "extra money" safely gaining interest in savings.

What do you do?
You know you may be looking forever for the perfect home for them with this budget.
To get them both moved AND happy it has become clear what you have to do...
You have to up sell.
And you can in this situation because you know they can afford it.
But you have to paint a picture that makes them comfortable.

Time to paint:
The difference in the salesperson who is an artist and the salesperson who rattles of facts and features is this...
The artist knows the way to the sale is to sell the value of the dream and not the price of the house.
The value of the dream is 7 years in a house the clients didn't SETTLE for.
The cost of that dream is 30 thousand dollars not 300 thousand.
Remember the facts as they stand now?
The budget is 270 thousand.
Meaning, the clients will be spending that weather they get the house of their dreams or not.
But in order to have their dream home, they have to invest 30 thousand in their dream.

Let's do the math to make the value of the dream make more sense to the client :)
30,000 / 7 = 4,285 ....
That's about 4,000 more per year to live in their dream home for 7 years.
4,000/ 12 months a year = just over 300$ a month.
$150 bi- weekly.
$10 a day.
(Keep this breakdown of the numbers on hand to show them)
Now, we didn't factor in the fact they are putting 20k down or their interest rate but the bottom line is of you break numbers down you can then ask the question:

You: WIFM #1 "Would you pay $10 more a week to live in your dream home for 7 years?...considering a gym membership is $1 a day for one person, and the average cell phone bill is $7 a day! And are talking about your home…something you get value BACK out of unlike the cell phone.

If need be WIFM #2: “Also keep in mind if you put that same 30k in a safe savings account for 7 years at a standard interest rate of .025 percent it is similar to putting it under the mattress.  And keeping in mind when you go to sell in 7 years and the property has increased at even the most conservative rate you will have made many more on the investment than if you park 30k in savings."

These are WIFM's to up sell.
“What's in it for me” statements for the client to ask and answer with your break down of the 30k investment.
And you do not have to give all of these incentives in one chunk!
Just the first and when that isn't enough you bring in another and another.
You know these people.
You have listened to them and know enough about them to guess what their costs are other than their mortgage.
You may not know everything but if they have 2 kids and are a 4 person family all with iPhone’s you KNOW they have a cell phone bill…

Up selling is ironically about breaking things DOWN.
They know the features of what more money will buy.
That hasn't motivated them yet, so why would it randomly start?
It won't.
You have to put the whole advantage into perspective because features "here and there" are things we can all live with out.
But if you could have ALL the features at this small daily cost... Why wouldn't you?

You may be thinking this method will take some time for you to calculate and present.
You are right.
It will probably take you ½ an hour to get the numbers down and maybe even an hour to discuss with a client.
But if this breakdown approach is what gets you to the sale and a higher sale...
You will have made (on average for this example) $1000 more for 1.5 hours of your time...
Know anyone other than a plastic surgeon who can say that?

And the silver lining (as if that isn't enough) ... Your clients will get the home they truly want and can still afford.

Break.
It.
D
O
W
N






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