Maybe you've been into an electronics store and after buying a device the salesperson has asked, “would you like to get an extended warranty with that”.
Upselling and cross-selling – these are the oldest and most well known sales techniques in the book.
In the world of selling/upselling security products to commercial buildings, there is a real interesting paradigm shift going on thanks to the Internet of Things.
|The Smart Hotel and Smart Home needs lots of software/hardware, and interfaces - but who will sell it all?|
In the past, it was common for a lock manufacturer saleseperson or a builder/architect to go into a new commercial building (or one being renovated) and sell locks. Every building has to have locks right?
The lock salesperson might also upsell other products at the same time such as thermostats and reverse cycle air-conditioners. Often this was done as part of long established partnerships with other companies.
In a hotel for example, the lock salesperson would also upsell software to manage the locks, and perhaps software to manage the hotel – also known as Property Management Software or Computer Reservation Systems. The lock salesperson might also upsell doors, frames, and other locks such as cabinet locks or even safes.
Now the Internet of Things is changing all that.
When a new building such as a Hotel or an office building needs to be built, there still needs to be locks, but the lock salespeople/builders aren’t the ones commonly doing the selling and the upselling anymore. That’s because building these days require something which is as necessary as security, and that is ‘smarts’. And by ‘smarts’, one simple example we can all relate to is ‘wi-fi/internet’ and supporting network infrastructure.
Do we trust lock manufacturers/builders, or other ‘old school industries’ to supply our wi-fi/internet infrastructure? Well perhaps that’s like asking ‘do you trust your plumber to install new powerpoints and lights?’ And so who will you trust to connect all of your smart devices together such as smartTV’s, smartlights, smart thermostats, and smartlocks?
The answer is of course ‘mobile phone companies/telco’s/internet provider companies’.
They’re already doing it in now in hotels. Companies such LG, Samsung, Apple, DoCoMo are selling their smart products such as SmartTV’s, wi-fi stuff to hotels, and now their upselling all this other stuff too such as smart thermostats, smart lights, smart locks, smart sensors and the software and that brings all them together (click on the links to the mobile phone companies to see examples of their products and sales/trials in hotels).
And of course for each new product the mobile phone companies upsell/cross-sell, they get their commissions from all the other companies products they sell too – perhaps its 10%, 20%, 30% commissions, perhaps even more, perhaps less?
In the past, the lock manufacturer’s salesperson was bringing all these commissions to the lock manufacturing company. But now all the commissions, or perhaps you could even call it ‘the easy money’ is going to the mobile phone companies/telco’s/internet provider companies.
So what’s the bottom line here?
Perhaps there are four main points to come of this blog, other than seeing how the Internet of Things is disrupting the security industry, and those four points are;
1. As the Internet of Things continues to grow daily, expect more and more large companies to come together in ‘partnerships’ or perhaps we can even call them ‘upsell relationships’.
2. If you have smart products or want to sell smart products then get into bed with telco’s/mobile phone companies/internet companies to upsell your products, otherwise they’ll be too many middle men getting their commissions.
3. Expect money to continue its transition to the big mobile phone companies/telco’s/internet provider companies and profits to decrease in the older industries.
4. If you want to work in sales and get big money, get yourself on over to mobile phone companies/telco’s/internet provider companies and sell smart products.