An effective dealership sales process provides customers with solutions, not roadblocks. As a dealer principal or manager ask yourself this very difficult question: "Am I (and our sales process) getting in the way of customers trying to buy cars at my dealership?"
Why ask for answers you don't want?
Why have salespeople been encouraged to solicit offers from customers? Does this not set up low or ridiculous offers? Why do we put customers into the awkward position of asking them how much they want to pay for our product when they have no idea of profit margins?
Why do we ask customers what they want for their car when their answer is always going to be one that we don't want to hear? These age-old methods break the very first rule of negotiation: "He who puts the first numbers on paper wins." In other words, whoever establishes the first figures and makes the first offer gains control and sets the benchmark for the negotiation.
Consider the fact that many customers are unwilling to make an offer until they can establish either monthly payments, price, trade-in value, or a difference figure. But many sales managers tell their salespeople: "If we give this guy numbers he's just going to shop us. I'm not givin' this guy anything until I have an offer and some money. Get an offer. I want commitment!"
These obsolete attitudes have salespersons caught between a rock and a hard place, unable to satisfy their customers with information and unable to satisfy their manager with an offer. And because many salespeople have become accustomed to this frustration, they will not even attempt to 'go to paper' because it's too difficult to negotiate backwards. Hence, many dealerships have created an environment where it is difficult to move a customer into a position of negotiation (the write) because of the many road blocks their sales process puts up.
Catch 22 for salespeople
Because many sales managers demand offers and deposits up front, salespeople have difficulty creating the 'write'. More importantly, if a salesperson perceives that the customer is going to be tough to get an offer from or that he or she is not buying 'today', many simply release customers at the end of the demonstration drive. Salespeople often feel they are caught in a 'Catch 22'. They're told to get the offer; however, if they get one that is too low (as it usually is), then they are chastised for bringing in a "ridiculous offer".
One of the biggest myths in the showroom is that salespeople have difficulty closing. In reality the problem is not closing, but rather the "writes". If you think about it, if your dealership was able to theoretically increase its "writes"to match the number of presentations and demonstrations, would your closing ratio and volume not significantly increase as well; simply being 'dragged up' because you "swung the bat at more balls"?
If a customer has made a selection of a vehicle and been treated to a good product presentation and demonstration drive, MAKE YOUR CUSTOMER AN OFFER! Make them a financial proposal which includes finance payments, lease payments, selling price, trade-in and difference and show them HOW they can buy/lease your vehicle without the necessity of an offer and a credit card. Remove your customer's fear of commitment by allowing them to view numbers without commiting. By doing this, and entering discussions of numbers, this in turn will create a closing situation.
Apply the soft sell
Allow salespeople to create the write utilizing 'soft' trial closes during the demonstration drive. For example: "Mr. and Mrs. Jackson, when we get back to the dealership, I would like to put some numbers down on paper for your consideration. Whether you are planning on making a decision today, or sometime in the future, I would like the opportunity to show you some figures on this vehicle - is that OK with you?" This non-threatening 'soft' trial close allows salespeople to easily make the transition from the demonstration drive back to their work station.
It then allows the sales manager the opportunity to draft a proposal (making the customer an offer) that is presented by the salesperson along with a menu of choices (e.g. - vehicle price, trade-in estimate, three or four payments, etc.) This gives the salesperson a credible way in which to ask for the sale based on serving up options with a question: "Mr. and Mrs. Jackson, which one these works best for you?" The objections (or counter-proposal) give a salesperson the opportunity to close and create a valid offer with a credit card deposit.
Focus on payments, not price
Always serve up proposals that include various payment options. Fully 92 percent of customers finance or lease their vehicle purchase. Prehistoric sales processes that demand customers to make an offer inadvertently put the focus of negotiation on price, thus reducing gross, when in fact the customer's true concern is more often payments. It's not an issue of price for most customers... it's an issue of AFFORDABILITY. Unfortunately, many showroom sales processes do not explore the opportunity to present payments in the form of proposals and create more 'writes'.
Consider presenting payment-based proposals to ALL of your customers that have selected a vehicle. Remember, those that claim they're paying cash usually aren't; they've set up a pre-approval at their local bank branch or intend to pay for their vehicle by utilizing their line of credit. By presenting payment proposals to them, you also move the negotiations further away from price and trade-in value and give the customer the opportunity to close today, as opposed to returning to a bank branch to get an increase in their pre-approval and potentially losing the sale. Think of it as simple as this: "OK for the payment - OK for the car!"
Take a very close look at your sales process and identify any 'roadblocks'. Get rid of them and you will get more writes and sell more cars.
Chris Schulthies is president of Wye Management, a training resource for salespeople, F&I managers, sub-prime managers, used-vehicle managers and sales managers throughout Canada and the U.S. The company also develops national training programs for OEMs and suppliers and Chris regularly speaks at industry conventions and 20 Groups. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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