The Sales Funnel According to McDonald’s

Did you know that it costs McDonalds $1.91 in advertising to get you to buy a burger from them? And when they sell you that burger for $2.09, they ONLY make $0.18.  It’s even worse for them if you order off of the value menu!

But, when they sell you fries and a coke for $1.77 more, they make (and more importantly KEEP $1.32 profit).  That’s eight times the profit when they get you to add a fries and drink to your order!

That’s how a sales funnel works. The initial profit is small, but once the sale is made there’s the opportunity to upsell (or downsell).

For the uninitiated, an upsell is when someone buys a lower-priced product or service and then they purchase something at a higher price point.  It would be like someone coming in to a store to buy a shirt and a salesperson also sells them a tie that is more expensive than the shirt.

A downsell is “would you like fries with that.” The burger costs $2.09, the downsell is less than that, but the downsell raises the amount of profit in the total transaction.  When Mickie D’s gets you to buy a coke and fries that costs you another $1.77, they’ve raised their total profit from 18 cents to $1.50. Do that billions of times and we’re  talking some real money.  Which makes McDonalds a very profitable company.

Do you have a sales funnel for your business? You can design one from your own products and services or from products and services that you sell as an affiliate marketer. Your real profits will likely come from your upsells and downsells. That’s generally how it works, and you don’t have to take my word for it.  Just look to the golden arches.

As you strategize for your business, think about how you can create a hierarchy of products that makes sense from the viewpoint of your ideal customer.  If they buy your low-priced offer, what would they most need that would be a higher priced offer?

If they pass on the higher priced offer, is there something at a lower price point that you could offer them?  Your service as a business is enhanced when you have a range of products that will be of help to your buyers.  If you need any inspiration for this planning, again, look to the golden arches.

I invite your comments and questions, and your likes and shares!

 

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