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Back-Ending – A Simple Strategy That Provides Fast Returns

posted Oct 4, 2010 5:03 PM by Lisa Russell   [ updated Oct 4, 2010 5:39 PM ]

If you have a nice back-end, you’re going to make a lot of money in sales. Not that back-end! I’m talking about a selling strategy that you simply must adopt right now - the very survival of your business may depend on it.

What is back-ending? Simply, having a second, third, maybe even a fourth product ready to sell after right after you make the first sale. This is the way real money is made in sales, and sometimes, it is the only way a true profit is made.

Amazingly, many businesses don’t do this.

Finding first-time customers is expensive. Advertising, direct mail pieces, sales peoples salaries or commissions, the cost of telemarketing and more. Then your other overhead costs, labor, raw materials, or what you pay wholesale for your retail sale items etc.  Calculate the time, agony and effort in getting that customer to put trust in your service or product - only to sell to them just once. What a waste!

Adding it up each customer you attract and sell to can cost as much or more than the profit you make from each sale.

The solution is to make additional sales to each customers you have already bought and paid for with your marketing efforts. Each time you sell more to that customer; it frees you from the need to pay more to find a new customer.

But the point is, once you have a customer; get the most out of him or her because you have expended a lot of resources to find that person in the first place. A customer has to buy goods and services somewhere…it might as well be with you …makes sense really.

Successful back-ending means careful planning. It means having additional products ready to go and available at the time of the first sale this works best when you try to make that second or third sale right away, not two weeks later when the customer has already cooled off, or even maybe forgotten about you.

If you sell shoes, sell shoe polish, maybe a pair of socks. If you sell a shirt, sell a tie, or several ties. If you sell bicycles, sell as many accessories as you can - water bottles, pumps, biking gear eg shoes, gloves, caps and more. If you sell computers, sell software and an extended warranty.

It’s really a simple concept to make back-end sales, but it’s amazing how many businesses never do it. Even if you’re satisfied with the profits you’re making on your first sale right now, and you don’t think you need a second-tier product, think about how much potential income you’re letting pass by, possibly to go into your competitors pockets.

Back ending is the method to continually garnering continuing profits from the customers that you have spent so much money acquiring and worked so hard to get.

So take care of your back-end, and it will take care of you.

Contact:    Shiralee Friel
Business:  Alchemy Network Sunshine Coast
Phone:      0414 967 951