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 Interest

    A method of calculating interest whereby the interest payable ...
  3. Assimilation

    The absorption of stock by the public following a new issue. ...
  4. Bill Of Sale

    A document that details in writing a sale of goods or transfer ...
  5. Suggestive Selling

    A sales technique where the employee asks the customer if they ...
  6. Value Added

    The enhancement a company gives its product or service before ...
Related Articles
  1. Insurance

    Add-On Insurance: Do You Need It?

    Insurance is important in certain situations, but there isn't always a need.
  2. Home & Auto

    Car Insurance Add-Ons That May Be Worth The Money

    Many auto insurance add-ons are unnecessary in most situations and will simply drain money out of your pocket. There are several that are worth adding on to make sure that you are adequately ...
  3. Professionals

    Sales Director Career Provides Daily Challenge

    Find out what you need to do to close the deal on this investment management position.
  4. 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. ...
  5. Economics

    What Does Asymmetric Information Mean?

    Asymmetric information describes a situation where one party in a transaction knows more than the other.
  6. Term

    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.
  7. Home & Auto

    What You Should Know About Home Sale Contingencies

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

    Home Sale Contingencies: What Buyers And Sellers Need To Know

    Home sale contingencies protect buyers who want to sell one home before purchasing another. Find out what buyers and sellers need to know about these contractual conditions.
  9. Taxes

    5 Financial Bills That Snuck In For 2010

    These five add-ons are intended to provide tax incentives for individuals and businesses, and encourage the development and growth of environmental practices.
  10. Entrepreneurship

    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.
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. 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 >>
  3. 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 >>
  4. When buying a car, is it better to have a trade in or a down payment?

    When buying a car, it may be better to have a down payment rather than a trade in. A trade in offers convenience to the car ... Read Answer >>
  5. How do you determine a company's percentage of credit sales?

    First, we should establish the fact that, depending on the industry, most companies' sales are sold with terms of payment ... Read Answer >>
  6. What key conditions might explain a company's declining net sales in spite of increasing ...

    Explain why a company reports a decline in net sales even though it generates an increase in revenues during the same reporting ... Read Answer >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center