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.

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