Add On Sale v Up Sell
One of the main questions Operators ask is what price should they charge for smoking drinks. The quick answer is that in the short term Operators will generally charge a 25-50% premium on current prices.
In the short term this will generally work as customers are willing to pay extra for a new experience and this will usually result in a quick ROI. To achieve consistent longer term sales however an Operator should decide whether an Add On Sale or an Up Sell is the best method for their venue.
Add On Sale
This is a drink that sells at the same price as other drinks on the menu, to generate additional revenue without affecting existing drink sales. In our experience, we have found that the best way to take advantage of this is to seasonally change the menu. Examples from Operators would be promoting red coloured Smoking Santa’s just for the run up to Xmas. Consistent updates to the menu and the timing of the updates are the important factors.
This is a drink that sells at a premium to other drinks. For example you might sell a Cosmo for £7.50 and a Smoking Cosmo for £10. We have seen that to maintain sales at a premium price your menu needs to have a premium look to it and in particular the photography. We can provide high def images and also advise a design agency (Product Agency) to customise/print the menu for your venue if needed. To maintain sales at the premium price, evidence also suggests that the drink menu/price should not change, to reinforce in the mind of the customer the value of the experience.
The System is simple to install and it is fairly easy to make a quick ROI through Up Selling. To achieve longer term ROI we recommend taking a second, before launching the product, to think about what your menu is going to look like and how it will change to help decide whether Add On or Up Sales are more suited to your venue. When it comes to the Up Selling, communicating value is most important, while success in Add On Sales comes from appealing to the impulse buy.
We have the online demonstration studio in the office and if you would like assistance with making this decision or would like to review your sales to date, then please get in touch to book a time slot.