Amid all the social turmoil and financial unknowns, this year will be an exciting one for many businesses. So how can retailers and service providers succeed?
The truth is that one of the best ways to grow your business is to sell high-ticket items to customers. However, selling these kinds of products or increasing your average order value isn’t always easy. There are various challenges associated with selling such expensive items, like having to deal with competition from major online retailers, and convincing customers to invest in your brand.
However, with the right approach, selling a high-ticket item doesn’t need to be difficult. It is possible to overcome the aforementioned challenges and make sales. In this guide, we’ll cover all you need to know. We’ll look at some key tips and tricks that eCommerce leaders use when selling expensive products.
What Is a High-Ticket Item?
Before we look at tips and tricks for selling these kinds of products, it’s important to have a clear understanding of what big-ticket items actually are.
In a nutshell, a high-ticket product or high-ticket sale refers to the sale of a premium product with an expensive price tag. Examples of products for high-ticket sales include:
- TVs and PCs
- Other electronic devices
- Luxury goods
The Pros and Cons of High-Ticket Items to Sell Online
Just like any other kind of business approach or strategy, there are both advantages and disadvantages associated with the sale of such expensive and luxury items. Here are some of the main pros and cons:
- Revenue Boost – One of the main benefits is, of course, a revenue boost. The sale of just one high-ticket item can be equivalent to the sale of dozens or even hundreds of smaller items.
- Fewer Leads – When you have high-ticket items to sell, you don’t need to generate as many leads. This means that your marketing team can fine-tune their approach and your sales team can target prospects more thoroughly.
- Less Haggling – Typically, when you sell an expensive item online, you won’t have to deal with shoppers complaining about the price or trying to negotiate some kind of discount. Buyers will be prepared for a high price tag, making them less likely to take issue with it.
- Competition – When it comes to high-priced items, there’s a lot of competition out there, especially with major online marketplaces like Amazon dominating the scene. This can make it hard to draw buyers to your brand.
- Long Sales Cycles – It usually takes a lot longer to make a sale when you have big-ticket items to sell. The sales cycle is often drawn-out, and sales teams have to work very hard to close each deal.
- Risk of Complaints – When you’re selling such expensive items, they need to be more or less perfect. Buyers will want to get a good quality item for their money. In fact, they’ll be much more willing to complain if things go wrong, or if the item isn’t exactly as described.
How to Run a High-Ticket Business
As we can see, there are various challenges to overcome when you’re selling big-ticket items. So, how do you do it? Well, in this section, we’ll explore some of the main methods and tips that have helped many of the best eCommerce brands make sales of high-ticket products.
Sell Recognizable Brands
When it comes to high-ticket items with high prices, shoppers tend to be quite wary about the brand behind each product. They want to see a name that they recognize and trust in order to part with so much money. Hence, it makes sense to choose products to sell that come from leading companies, like Samsung or LG in the electronics space.
Manage Feedback Effectively
Nowadays, a lot of people look at reviews of stores and businesses before buying from them. This is especially true in the world of high-ticket sales. Thus, it’s important to have a good overall rating and positive reviews. When you manage to make sales, for example, try to encourage customers to leave positive feedback for you.
Provide Good Images and Videos
Even though many products are bought and sold online nowadays, without any in-person interaction, buyers still want to see what they’re paying for. It’s therefore important to provide clear, high-quality images and videos of the items you’re selling. Always attach them to your product pages for customers to take a look at.
When it comes to actually speaking with possible customers and trying to convince them why they should choose your store over their other options, it’s important to show confidence. A confident approach and clear belief in your store are the best crucial elements of closing sales and gaining loyal customers.
Build Up Your Brand
Another piece of advice to sell online high-ticket items is to make sure you work on your brand and build it up. Customers won’t want to buy from brands that seem a little vague or shallow. They want to find brands that have a clear and consistent voice, a strong social media presence, a clear relationship with consumers, and so on.
In the world of high-ticket eCommerce, there can be a lot of competition, and there may be plenty of other stores out there selling the same or similar products. So, one of the main ways to draw customers to your store is to keep your prices fair and competitive. You can even offer monthly payment plans to make it easier for your shoppers to make a purchase.
In fact, offering flexible financing methods such as BNPL to customers is one of the best ways to increase your sales and help shoppers access big-ticket items. Many businesses report over 30% increase in conversion rates and average ticket size thanks to BNPL. Tarya’s Installment Manager, in particular, is one of the most effective alternatives to BNPL financing that can help you boost revenue and tap into new opportunities.
In the end, selling high-ticket items online is not impossible. With the right approach, you as a business owner can easily increase your sales and customer satisfaction and stay competitive beyond 2023.