What is over selling
Oversold occurs when a seller pursues their sales pitch after the customer has already decided to buy. This error can sometimes annoy the customer and could possibly make him change his mind, which would cause the transaction to fail.
Break the oversold
Overselling can also be an effort to convince a customer that an additional item would improve what they are looking to buy, or that a more expensive version might be a better option. Overselling is more common in retail outlets where associates work on commission or through sales bonuses, and are therefore encouraged to sell as much as possible, regardless of customer needs. Car dealers are often accused of overselling. Their sales reps don’t always recognize that they can generate much more revenue from returning customers and referrals than by misleading customers by paying extras they neither need nor want. They are willing to sacrifice long-term brand equity for short-term sales by selling customers on anything and everything.
Disadvantages of overselling
While it can be done with good intentions, overselling generally does more harm than good. Big sellers know when to close the sale and when the customer is ready to buy. Overselling can have a negative impact on a company’s bottom line. It can also raise doubts in the mind of a buyer and can do so at the precise moment when the customer is looking for reason to believe that he is making the right choice. Over selling gives the buyer a reason to stop and wonder if they are paying too much or if the item is more than they need. Even if the buyer does not backtrack in an oversold situation, the seller may create false expectations that can never be met, in which case it could damage his credibility as a trusted seller.
There are reasons to believe that the pitfalls associated with overselling are worse today than ever before. Research shows that today’s buyers are more informed and better informed than ever. With virtually unlimited access to information, buyers have probably done their bit of research, and may even have made up their mind before speaking to a sales professional. This access to information has changed the dynamics of sales, because salespeople are no longer the sole source of information for consumers. Often, sellers would benefit from a short sale or present various options to customers. Needs-based selling is generally a preferable alternative to over-selling.