BU121 Lecture Notes - Lecture 6: Upselling, Georgian Lari, Factor Analysis
Document Summary
Characteristics: lots of them, easy to find, spending patterns. Value to you: $ value of sale, repeat sales, ongoing sales support, keep your customers coming back after the original sale. Value to customer: how important, competitive advantage, price/value relationship. Customer acquisition cost: entry points, sales support required, promotional activities. Profit per sale: margins, up-selling (bought an ipad, try to sell them a keyboard that attaches to the ipad) and cross-selling (bought an ipod so try to sell them a macbook), ongoing product costs. Investment required: to enter business, to keep market share, to stay on the cutting edge (stay relevant). 3 ways to make money in water filtration. Q water = rents water filtration systems for a monthly fee to restaurants. Aquaovo = sells water filtration systems with a stylish cooler for a one-time fee to individuals. Event water solutions = rents water filtration systems for a per-event fee to event holders.
