Upselling Versus Downselling – Which One Will Make You More Money And Why?”

Many entrepreneurs are taught to offer a low-priced or free item and then upsell the customer to a higher-priced product or additional item to increase the average cart price. Join Jay on today’s Black Entrepreneur Blueprint podcast episode # 364 where he discusses the science of upselling versus downselling and how you may be leaving money on the table. Visit








Upselling Versus Downselling – Which One Will Make You More Money And Why?

As entrepreneurs, our objective is to make as much money as possible by selling quality products and or services. In order to be more profitable, we need to understand the concepts of upselling and downselling and which one is more profitable.

Definition of Upselling – is a sales technique used to get a customer to spend more by buying an upgraded or premium version of what’s being purchased. Example: Would you like fries with that meal?

Definition of Downselling – involves a reversal of the up-sell. If a customer does not want the product you want to sell, you suggest a lower-priced alternative.

NOTE: Upselling usually starts off with a free or lower-priced offer, whereas downselling usually starts off with your highest-priced offer.


The psychology of upselling – Upselling is used in situations where you are trying to get a customer to buy something at a low price or you’re giving something away for free (such as a lead magnet – free pdf checklist), and once they buy that low priced item or accept that free item, you try to sell them something else at a higher price. NOW LET ME ASK YOU A FEW QUESTIONS

  • How does that make you feel when you get upsold (For example: buying a car and being sold on extra warranty and undercoating)?
  • What are your expectations when you make your initial purchase or accept the free item (you don’t expect to pay more and don’t want to pay more)?
  • Are you going against gravity by trying to get people to spend more money, or are you going with gravity (gravity has a downward pull, not upward)?

The psychology of downselling – Downselling is used in situations where you start off selling your higher-priced products and then provide lower-cost offers.

  • How does it make you feel when you get downsold (Example: our 1 on 1 coaching program is ONLY $10,000, our group coaching program which won’t give you the same individual attention as the 1 on 1 program is $5,000, and the least effective offer is the DIY online course alone for $997? It should make you feel appreciated to be offered the top-of-the-line program first – you’re giving them the top value first and then dropping down to the other options which don’t have as many features and benefits.
  • What are your expectations when you are told about the highest priced offer first versus being told the lowest price offer first (your initial expectations are set at a high bar as you understand all the features and benefits of the top end offer)?
  • Are you going against gravity by trying to sell the highest-priced offer first, and then offering lower-priced options? (Remember, gravity has a downward pull, not upward)


 Benefits of Downselling:

  • Your perception is totally different than being upsold. Your point of reference is now from a higher level of expectation based on the pricing. (Example: use an airplane as an example – your view from 30,000 feet in the air is totally different from your view on the runway. When you downsell and offer the high-end product or service first along with explaining what comes with that product, you set the expectation high. In this program you get this, this, and this, which will allow you to do that, that, and that. The next option won’t have all of those features and benefits, and the lowest option will have even less than the middle option.
  • When given three options presented in a downselling scenario, most people will take the middle or the top option. If given those same three options in an upselling scenario, most people will take the lowest or the middle option – leaving very few if any taking the top option which results in a lower average per sale.
  • It’s always easier to reduce your price in the sales process than to increase your price. The initial price you set from the start influences the customers’ perception of the value of the product.
  • You can also price your options in a way that the lowest option doesn’t even make sense for people to buy thereby forcing them to make a choice between the high and the middle offer. You can also price your offer where you are giving so much value on your high-end offer that it would almost be silly not to purchase it.

Leave a Reply

Your email address will not be published. Required fields are marked *