Rebate Don’t buy without rebate !The Upsell Equation
I’m hoping there’s a mathematical/statistical way to prove that my boss’ approach to measuring our performance is not effective.
We are measured according to the percentage of “upselling” (selling more expensive stuff) in accordance to the overall amount of product sold.
In other words, the person who sold over $2,000 in overall product has a lower “upselling” percentage than the person who only sold $600 of overall products. For example, if I get a group of 10 people and only manage to upsell 3 products, my upselling percentage drops. If I get only 2 people and upsell 5 products, my upselling percentage is higher.
My argument is that the person who brings in the store $2,000 is making much more money for the store anyway!
Additionally, (and this is where I hope you come in) the higher amount of overall products you sell the lower the upselling percentage will be.
Am I right? Does this make sense? Is there a mathematical equation to prove my point?
In response to Shandra:
Both positions can require upselling. Assuming a person entered both locations with an intent to buy. At McDonald’s, you can upsell a larger coke or fries. At a car dealership, you can upsell by having them buy rims or a stereo system.
With that comparison: The car dealer sells a 40,000 dollar car and upsells rims for 3,000.
The person at McDonald’s sells one burger for 5.00 and upsells a larger coke for 2.75 and larger fries for 3.00.
The guy at McDonald’s just upsold an additional 5.75 which is much more than the original sale of the 5.00 burger. So his upselling “percentage” is much higher, but the car dealer brought in his company much more money.
See what I mean? Also the higher the overall product, the lower the upsell percentage seems to be.
Difficult to resolve.
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