Ever wonder why Maccas always tries to sell you fries? Well, here’s the answer:
“The bump, upsell, or cross-sell are ways of expanding the existing purchase of a client. Bumps are usually lower priced products or services and are related to the purchase already being made. They take very little effort to implement and can substantially increase your bottom line over time. To understand just how much they can raise your profits, consider how McDonald’s raised theirs back in the 1970s. Marketers looked at the profit and loss statements of one of their largest franchisers who owned ten restaurants. They realised that one of their most popular menu items, French fries, were not being ordered by 200 customers per day, per store. So, they came up with a very simple solution. They had cashiers merely start asking customers if they wanted fries in addition to their order. You know what happened? Half of the customers said yes! At that time, French fries cost .60 per bag, so it may not seem like much of an increase at first. Yet, 100 more orders of fries per day equalled $60 more per day for each franchise. This totalled $21,840 for each restaurant over a year’s time for a final accumulated total of $218,840 for that lucky franchise owner conducting the trial. McDonald’s soon implemented the sales technique in every franchise and the rest is history.”
There you have it. McDonald’s marketers caught on to the fact that when customers are already buying, they are open to the idea of buying more. It goes to show that a small but significant tweak of the system can make a huge difference.
Source Link:
www.inspiringchampions.com
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