Add-On Sale

DEFINITION of 'Add-On Sale'

A sale of additional goods or services to a buyer. Depending on the business, add-on sales may represent a source of significant revenues and profits to a company. An add-on sale is generally suggested by the salesperson once the buyer has made a firm decision to buy the core product or service. Sometimes known as "upselling."

BREAKING DOWN 'Add-On Sale'

Typical examples of add-on sales are the extended warranties offered by sellers of household appliances such as refrigerators and washing machines, as well as electronics. Automobile dealerships are another generator of substantial add-on sales that make a significant contribution to the top and bottom line. Once a car buyer has committed to buying the base model, adding on all the bells and whistles can substantially boost the final purchase price.

RELATED TERMS
  1. Add-On

    Additional shares put on the market by a company that has already ...
  2. Add-On Certificate of Deposit

    A certificate of deposit that allows the bearer to deposit additional ...
  3. Add-On Interest

    A method of calculating interest whereby the interest payable ...
  4. Add-On Factor

    The number of usable square feet divided by the number of rentable ...
  5. Augmented Product

    A commodity that has both the primary physical attributes and ...
  6. Assimilation

    The absorption of stock by the public following a new issue. ...
Related Articles
  1. Entrepreneurship & Small Business

    7 Steps To Selling Your Small Business

    Money in the bank and newfound free time make this grueling process worth the trouble.
  2. Investing

    Sales Director Career Provides Daily Challenge

    Find out what you need to do to close the deal on this investment management position.
  3. Investing

    Net Sales

    Net Sales is an accounting term used to analyze a company's performance. It is the sales revenue that remains after deducting for product returns, damaged or missing products, and discounts. ...
  4. Markets

    How Economies Depend on Sales

    A sale is a transaction in which a buyer receives goods or services, and the seller receives money or some other form of compensation.
  5. Investing

    Understanding Gross Sales

    Gross sales represents the overall revenue of a company through its sales activities.
  6. Markets

    What Does Asymmetric Information Mean?

    Asymmetric information describes a situation where one party in a transaction knows more than the other.
  7. Personal Finance

    What You Should Know About Home Sale Contingencies

    A home sale contingency protects buyers who want to sell one home before purchasing another.
  8. Retirement

    Ready to Retire? Here's How to Sell and Close Your Small Business

    Learn the essential steps to prepare to sell your business with the best possible outcome, a secure retirement for you and your family.
  9. Investing

    Housing Deals That Fall Through

    Find why buyers back out and what you can do if you're left holding the bag.
  10. Managing Wealth

    How to Avoid Violating Wash Sale Rules When Realizing Tax Losses

    How to avoid violating the IRS wash sale rules when realizing capital losses in your taxable investment account.
RELATED FAQS
  1. What level of return on assets should an investor look for in the insurance sector?

    Learn why marketing is important to a company in the utilities sector, despite the fact it sells products and services in ... Read Answer >>
  2. How does the always be closing (ABC) strategy benefit a salesperson's sales funnel?

    Understand what it means for a salesperson to always be closing, and learn why a salesperson should want to always be closing ... Read Answer >>
  3. Why is the strategy of 'always be closing' (ABC) popular in retail sales?

    Understand how the term ''always be closing'' is related to retail sales. Learn about the benefits and drawbacks of selling ... Read Answer >>
  4. What components are factored in determining net sales?

    Understand the key components that factor into determining a company's net sales. Learn about the underlying drivers of those ... Read Answer >>
  5. What is the difference between revenue and sales?

    Learn to distinguish between a company's revenue and its sales, and see why the distinction is important when analyzing a ... Read Answer >>
  6. When should retailers apply the 'always be closing' (ABC) strategy?

    Understand when it is appropriate to use the term "always be closing," and learn why a salesperson should want to embrace ... Read Answer >>
Hot Definitions
  1. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  2. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  3. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  4. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
  6. Security

    A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship ...
Trading Center