What is Down Selling?
Down Selling is the action or practice of offering a more budget-friendly alternative to match the customer’s budget, to a product or service initially considered by the customer. Down selling usually being made when the customer, for any reason, decides to walk away from an offer without completing the purchase.
What is the Importance of Down Selling?
Down selling is important to any business to increase the number of acquired customers by offering a lower offer for a slightly similar product or service offered initially, increasing the probability to increase sales.
Down selling is narrowing a customer’s expectations and matching them more effectively with a solution that best fulfils their needs or desires.
Down Selling Example
Down selling example is when a car dealer offers a Toyota car to a customer for $15,000 and then down selling by offering the same model by with less upgrades, like removing the leather seats for only $14,000. This down selling offer allows the customer to get the same car model he wanted but fit for his budget and for the salesperson to generate a sale.
What is the Difference Between Down Selling, Upselling and Cross Selling?
Down selling is all about adjusting a more budget friendly offer for a customer that decides to walk away form an offer made, an upselling is aimed at persuading customers to purchase a more expensive, upgraded or premium version of the chosen item and cross selling is the action or practice of selling an additional product or service, related or complementary to an existing buyer who’s already committed to making a purchase.