IT must be true because virtually everyone I meet makes the claim with absolute certainty. Sales trainers are having a field day pushing the theory because if you buy the story, they get to sell more courses. But let's delve a bit deeper to see how much sense that theory really makes. The Internet is king these days. Vehicle buyers overwhelmingly seek out details about their upcoming purchases on-line. They spend hours hopping from one site to another so they can gather every known detail about every vehicle that interests them. Not only are they more educated, they are also smarterÖ and yes there is a difference. It is easy to learn details about a line of vehicles but to also understand financing and insurance, that is smart.
So if the above statements are true - and for the moment we will accept that they are, as a generality - we do indeed have a smarter, more educated prospect on our hands. But what has all this got to do with reality?
Don't disadvantage yourself
The reality is, the greatest enemy one can have is self-doubt. If one believes his or her opponent is stronger, faster or smarter, then chances are the doubter will lose whatever battle is being waged. Our world of selling is no different. If we believe our prospects know more about what we do than we do, then chances are we won't sell what we should be selling. In fact we will do more buying than selling! That is the problem with believing that your customers are more educated than ever before.
Allow me to clarify. It is OK to accept the premise that your prospects are more educated than ever before, simply because one should never underestimate those they are dealing with. To truly believe it, however, to the point that one's sales presentation suffers as a result, equates to sales suicide.
As sales people/F&I managers we are supposed to know our products and services so well that presenting them to the most astute buyers should be easy. We should have such a strong understanding of competitors' wares that overcoming prospects' objections is an easy task. And we should have enough confidence in who we are, what we do, and the abilities of our co-workers that closing sales becomes second-nature.
To fall into the trap of believing that our customers know more than we do is to put ourselves at an unfair disadvantage.
What makes people buy?
Is it the price and rate being quoted or is it the product/service being offered and what it will do for them? Certainly price is a concern but in many cases it is not the deciding factor. The very fact that people buy larger, more expensive vehicles than they need is proof of this. They "want"Ö and if they want something, they will pay what they have to pay to get it.
When prospects tell you they can get a product you market "cheaper elsewhere", do you believe them and offer to lower your price to match? When they claim they can "get a better rate at their bank" (same objection, by the way - only worded differently), do you ask what they are getting and attempt to match it in order to "get the deal?" If they say they "have enough insurance" do you believe them and go on to another productÖ or worse, just stop selling? If someone is emphatic about using his or her "line of credit" or declares, "I'm paying cash," do you say, "Uh oh" and just try to sell your ancillary products, leaving financing alone?
These are things that can happen when one believes the "customer knows more than ever before" and that is how we can end up buying more that we are selling. By doing so we are buying their objections and paying a very high price by doing so!
It has always been thus
Before I offer some suggestions allow me to share a thought with you. Customers are NOT more educated than ever before, at least when it comes to F&I. They always claimed they could get a better rate elsewhere. They always said they would use their bank rather than the financing plans offered at the dealership. They always said they had enough insurance and they always thought that we (dealership sales personnel) were not as good as they were. Always!
If one hasn't been selling that long, how can one even compare today's buyers to those of the past? It is easier to blame your inability to overcome objections on the customers' increased brainpower, than to accept and confront your own lack of proper marketing techniques. But it's a cop-out.
Know your stuff
Buying a vehicle should be an exciting experience; you know that. If your presentation sounds clinical, don't be surprised if your prospect defends her/himself against it.
So how can one make F&I products exciting? To start with, it is not what you say, but how you say it. Every presentation should sound as if it is the first one ever made. It should be passion-filled. It should be enlightening. If you are boredÖ you will bore the buyer!
Next thingÖ find out what your buyers know about what they think they know. Assuming that they know more than they really do is a financially deadly sales strategy. Once you know what they really know, your presentation and ability to overcome objections will be easyÖ if you know your stuff!
Understanding lines of credit, creditor insurance products, and financing/investment terms and conditions will make your life incredibly easier as you will not only know what you are talking about Ö you will know if your prospects' claims are accurate or 'off the wall'. Then you can sell with confidence.
Combat smarter with better
If your customers really are more educated than ever before, you too must become better.
Get your suppliers to provide you with product knowledge and make sure they know what they are talking about! If you are unsure about how lines of credit work, go to a bank and learn what you need to learn. Read the back of your creditor insurance certificates and truly find out what you are selling versus what lending institutions offer. And make sure you know what other bank's rates are and what conditions are attached to them. In short, find out how using alternative financing can actually hurt your prospects rather than help them.
Bottom line: don't blame smart customers for poor sales. That has nothing to do with reality!
Harvey Cohen is the principal of Harvey Cohen Learning Systems Inc., a Canadian company dedicated to automotive sales training and support. He can be contacted at (604) 526 6050 or at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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