What Is Over-Selling?
Over-selling occurs when a salesperson continues their sales pitch even after the customer has decided to make a purchase. This mistake can often annoy the customer, potentially causing them to reconsider and even abandon the deal. Moreover, over-selling sometimes involves trying to upsell a customer on more than they need or want, making them uncomfortable.
Key Takeaways
- Over-selling is continuing a sales attempt after the customer is ready to purchase or trying to sell them more than they need or want.
- This practice may harm a company’s bottom line, erode the trust between customer and salesperson, hurt repeat business, and lead customers to walk away from the deal.
- Over-selling may offer a short-term benefit to the salesperson by closing a sale but often comes at the expense of customer satisfaction and repeat business.
Understanding Over-Selling
Over-selling could involve efforts to convince a customer that an additional item would enhance their purchase or that a pricier version is a better option. It is most common in retail environments where associates work on a commission basis or receive sales-linked bonuses, giving them an incentive to sell as much as possible, regardless of customer needs.
For example, car dealerships are often accused of over-selling. Some sales associates fail to realize the immense revenue potential generated by return customers and referrals, rather than by misleading buyers into purchasing extras they don’t need. Such shortsighted practices often prioritize immediate sales over long-term brand equity.
Disadvantages of Over-Selling
While over-selling may be well-intentioned, it typically does more harm than good. Skilled salespeople know when a customer is ready to buy and when to close the sale. Over-selling may infuse unnecessary doubts in the buyer’s mind, precisely when they seek justification for their purchase decision. This mistrust could jeopardize the sale.
Moreover, over-selling prompts buyers to question if they’re overpaying or buying something more than they need. Even if they move forward, inflated expectations may arise that can’t be met, risking the salesperson’s credibility.
Today’s consumers are increasingly educated, equipped with virtually unlimited access to information online. As a result, the traditional sales approach has shifted. Rather than being a consumer’s primary information source, salespeople might benefit more from a soft-sell approach, presenting various options instead. Need-based selling, or adaptive selling, is generally more effective than over-selling.
Example of Over-Selling
Consider a college student who needs a cheap, reliable car for commuting to a part-time job. They have a budget of $1,500 and communicate this upfront. However, the salesperson insists on showing cars in the $5,000 to $10,000 range, advocating for easy financing options. The student, already burdened with student loans, is uncomfortable with additional debt, and conveys this hesitation to the salesperson. Despite the input, the salesperson keeps pushing the financing options.
Feeling uncomfortable with the overselling, the student leaves and seeks another dealership or salesperson willing to show options within their budget.
Related Terms: Upselling, Commission-Based Sales, Customer Loyalty, Soft-Sell, Adaptive Selling.
