I am new to Automotive Sales:
I have a question that I constantly get hit with on the lot: what's your best price? ...how do you answer that question without losing the customer? I usually tell them the sticker price and sometimes they lose interest. How do I bridge and overcome without losing my customer?
I love Joe Webb :) Good stuff
Thanks, Mike. It isn't brain surgery as you know. It just takes thinking outside the box and working smarter than the competitors. How many salespeople do you know take the time to engage and educate customers this way?
i agree. I am in love with this site because I am learning so much as a new salesperson. Thinking outside the box is crucial.
It depends if you're dealing with an in store up or phone/internet.
The similarites of either is the selection of vehicles to choose from, method of ownership (cash, lease finance) or new and used.
One response is "Customer - we both have a job to do, you are to look for the best value and its up to my dealership, as well as myself, to provide that. SInce we are having this (conversation/email communication) it's evident that we both did our jobs well since (you've found the best value/ we provide the best value). If we can go over exactly what you want and how you want it, I will know how best to assist you."
Then go into questions - vehicle selection, options etc.
If they don't provide the details for qualification, give the lowest reasonable price on the lowest priced model and the MSRP to go with it. After they asked why its so low, tell them, they generally start telling you what they want. and build the vehicle together. Do the walk around & test drive, or make the appointment, to reaffirm everything is exactly how they want it.
Another thing I'll say is that "If you are going to pay $10,000.00 for a pair of shoes, wouldn't you want to make sure they fit first?" Most of the time the answer is "yes". "Then let see if this vehicle is the right fit for you. If you are miserable in you shoes you can return it for a full refund, the same can't be said for vehicles once you drive off."
Once they see the value its easier to hold gross and sell dealer installed options.
IF they already have a vehicle picked out, would I handle it the same way? I come across quite a few customers who have been online and they already picked a car they like from our website. Do I still go on with questions about options or just proceed with the demo?
Angela, I'm sure you'll get a lot of good feedback on this. Of all the answers to this question that I've ever heard, the best (from my perspective) was from a cousin of my mom (who has since passed away). He was one of the top Mercedes salespeople in the SF Bay area for many years. He had a smile as wide as the ocean and expected/welcomed a 'best price' question because he said he knew when he heard that it was the beginning of serious engagement and he would make a deal. When asked, he would smile, point to the sticker (or quote the asking price) an then say to the customer "That's our price...what's yours! If you like this car as much as I think you do, I'm confident we can get to a price you'll be happy with."
Another successful Ford salesperson I worked with would always say "If you've shopped around you know this is a good price, but I'm sure theres a little room to move. let's put together an offer and let me go hammer my boss. He's under a lot of pressure to make break his own record this month and we just never know what he'll do."
Two points: First, never say something ..or let your body language indicate..that an offer...even a goofy one.. is a bad idea. Once a customer signs an offer he is mentally committed to go forward. Second, the biggest mistake you'll ever make is responding with even a ballpark 'drop'. A good deal is between the ears and everyone has different gray matter between the ears. some may be okay with $100 move. some may take a lot more. Listen. Listen. Listen. Ask questions. Confirm all the good reasons the customer is landed on that specific vehicle...size, color, style, features, safety, etc. Let the customer know you want this sale as bad as they want the car and be sincere.
finally, if you can't make a deal and your mgr has 'ok'd' a walk, wait a half hour, then call the customer. Even i you can't make any further price concession, call them. Thank them for coming in. Tell them you hope that after they've shopped around you'll get an opportunity to talk with them before they make a deal. People love to do business with people who really want their business.
Great question, eevn in the business office I get asked that question not on the unit but on products that I sell. I agree with the value over price close. It wont matter what my price is if the value does'nt make sense. I tell customers that all the time and let them see that Value will always support Price.
These days consumers seem to want to give us the opportunity to bid on their business, and it isn't a closed and sealed bid. They will play the sales person off against their own Internet Department, and against dealers in a 250 mile radius, or even further out in some cases.
I don't think there is any such thing as a "walk in" "store Up" these days UNLESS you are a BHPH dealer.
Since most car shoppers are not trained negotiators it is common for customers to use price as the dominant factor during a sales negotiation. One thing you always want to keep in mind is that when a customer asks for your best price that simply means the customer is interested in your vehicle, which is always a positive in this business.
In my opinion, the most successful salespeople will respond by answering the customer’s question and then shift the focus away from price and onto value. To do so, I recommend promoting the vehicle’s value, option and reconditioning highlights. For example, if your customer is asking for your best price on a used vehicle, you might respond by saying: “From my perspective, the best price is whatever price both you and my sales manager can agree upon, and I am happy to present any offer you may wish to make. Having said that, I would be remiss not to share with you that this particular vehicle has been priced very competitively considering its low mileage, optional in-dash navigation system, clean CARFAX, and especially when you take into account the fact that, unlike most vehicles in the market, this particular XYZ model vehicle just received a full 60k mile service, all new tires and new brakes."
The point is you want to demonstrate to the customer that a higher priced vehicle is often actually a better solution - a higher value. This is just my opinion, but I hope it is helpful to you in some way. I wish you the best of luck in your new career.
I feel that price is a good way to keep a conversation going. However, you need to be careful with how far you take it. Build value in the price. Sell your reputation, the reputation of the vehicle, and the dealership.
We need to handle these customer with proper care, sensitively, emotionally, personally by explaining the following:
a. Quality of Product, Competitive Edge over other.
c. After Sales Service, Turn Around Time (when he wants service back up)
d. Customer Service, etc.
The same situation happened to me when I joined in my orgn. Management has advised that no discount on tag price of product. So, discussed with sales team and finalized that we operate on the above. You may run a special promotion for a shorter period, if you need. In that case, price factor would not apply.
Thanks for giving me an opportunity.
Angela, there are a million opinions on the best way to handle this one so I'll throw my two cents in and say that Grant Cardone had a great answer for this when he said:
"Price is the easiest part of my job Mr/Mrs customer. I'll be happy to get you the best price on any vehicle you're interested in and if you aren't happy with it, I wouldn't expect you to buy...fair enough?"
In my humble opinion, it's a question that you handle directly, and quickly, then move on by asking a good question.
For example, let's say the customer is looking at a BMW. After you handle the price question you'd transition into the sales process by asking something like:
"By the way, are you driving a BMW now?" or "Will this be replacing a vehicle or are you adding one to the family?"
It's not about 'controlling' the customer or the sales process necessarily, it's more about asking good questions that will help the customer arrive at THEIR intended destination.
When they come in, they're hoping to leave with a vehicle. The main reason that most of them don't is because we, as sales people, screw them up by trying to jam them into a car instead of asking great questions to find out what they want and what they need. As Cardone said, 'if you learn how they bought their last vehicle it will help you learn how to sell them their next vehicle.'
Just remember, don't worry about selling a car. Just worry about using common sense to have a good conversation so that you can help the consumer get their goal accomplished.
Zig Ziglar said it best: "You can get anything you want if you just help enough others get what they want."
Hope that helps :)