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Comment by Brian Bennington on February 15, 2015 at 11:45pm

Answering your question Steve, I was taught at a very young age to never fall in love with any one thing without having another similar thing you like equally as well available for you, as it's a good defense to keep from "paying too much."  This is especially true when you're involved in relationships.  (A back-up honey definitely keeps things in a better perspective.)  I luv ya Steve, but I wholehearted disagree with presenting a price before a pitch.  You're breaking a cardinal rule of selling as "Price is a closing tool, not a selling tool."  The primary reason it happens is because too many "low skills, mediocre story teller " reps run out of interesting things to converse about with their customers.

Like you. they've convinced themselves that price is all the customer wants to hear.  Actually, there's only two things a customer (and every other person you know) wants to hear over and over again and it has nothing to do with money.  I've devoted a section about them on my relationship centered marketing website.  Successful selling is like putting a puzzle together because if you don't have all of the pieces, or you try to force-fit pieces, you don't solve it.  And, what's this about a level playing field?  Who would want such a thing?  It's something I'd do my damnedest to never allow my customer, or any rep I'm selling against, to have.  (Don't forget updating your DE bio!)          

Comment by steven chessin on February 15, 2015 at 9:19pm

Ha ha - of course I am a self-selling mooch ! Isn't everyone in the car business ? Aren't you Brian ?!  I did NOT buy the 4k over msrp car and DID buy a basic version with fair pricing. 

EVERYBODY today knows the price of cars - new and used - before they walk into the showroom - just as they know the price of hotels - airline tickets - everything. THAT is exactly the reason why I feel so strongly about presenting them before the customer steps into the showroom  --- so customers that would have bounced away from the webpage make contact instead.  Otherwise its a level playing field.    

Comment by Brian Bennington on February 15, 2015 at 8:24pm

Ok Rog, now we're moving into "guilt."  Any who express that mentality in one of your classes should be removed immediately as they're a bad hire and would feel much better about their job if they did something else, where they aren't confronted with their own value.  I can't believe you'd tolerate that attitude in your teaching.  Guilt is a liberal motivation thus, the only liberals you'll find selling "big ticket" are "phony" liberals who, when they're alone and no one can see them, "wring their hands in glee as they 'bath' in their big commission."

Now look what you made me say!  There's a good chance the "PC" police are on their way to get me as I write.  I only say "They'll never take me alive!"  Seriously, "guilt" is best left unsaid in a selling situation, unless it's for the biggest, most profound (and often tax deductible) "pitch" there ever was or will be.  (Which reminds my of my standard response for those special moments when I'm asked if I was "born again."  It's that "I don't need to be as I did it right the first time!")       

Comment by Roger Williams on February 15, 2015 at 7:59pm

Steven
Yes, All the guys and gals I coach are provided the basic math of average commission and amount of sales necessary to achieve that goal.

Comment by Roger Williams on February 15, 2015 at 7:56pm

Brian
I agree, I do not blame the manufacturer for anything, I did state the FACT that the MSRP has less mark up than in past but, it's only money and who's counting? My point was to all the people who are mistakenly guilted into believing making profit on selling an automobile is some kind of crime.

Comment by Brian Bennington on February 15, 2015 at 7:34pm

Hey Roger, While everyone who's sold for a while has probably had a case of "guilty satisfaction" from achieving a big, dare I say, "ridiculously humongous" gross, it's usually just the "luck of the draw."  I am a bit uncomfortable blaming manufacturers for doing something that's so inherent to their nature.  And while I see your point, you've got to give them credit for trying to make every vehicle the best, most desirable in the segment.  Keeping it simple, the manufacture delivers the vehicles and the dealer is suppose to sell them.  And, considering they get their "list price," with the exception of supporting low interest and rebates, they kind of share the same "I don't care who sells it as long as it gets sold" attitude as dealers.

The best, most positive and motivation-to-do better reason, and the only one new sales reps should believe, is that they control gross by the caliber of their relationship with the customer and the personalized-by-qualification presentation they deliver. Consequently, when they get a low gross, they should believe they could have increased it with their efforts.  They don't need to hear it's the result of a manufacturer's or competing dealership's treachery.  I'm sure you regularly see identical vehicles sold with dramatically different grosses.  I love thinking about selling, especially knowing it is such a powerful skill/trait/or whatever you call it, and it controls so many life outcomes beyond what happens on the showroom floor.

By the way, Chessin, like many good sales people, sounds like he's a self-selling "mooch."  He "sold himself" on the car way before he went in the dealership and the only thing his sales person had to do was figure out how to make as much money as they could, as Steve would justify what ever it was.   I love "self sellers."  I only wish there were more of them!  (Steve, you really should take a few minutes and update your bio.  You're way too qualified to be living in the past!)   

Comment by steven chessin on February 15, 2015 at 7:00pm

Roger 

Ask those that you coach 1 key question Can you get there from here?"  Do the math. If the target income is 100k per year it is $ 250 per car x 250 work days. More than $ 250 is one possible way to get there. Working more than 5 days a week is another. And lastly selling more cars is the last variable. I chose "door number three" for my career path in sales support for the entire team. 

But since my contribution only earns me $ 100 per car I need to run at a 1000 unit pace, so how is it possible ? One thing is clear to me that without salesmen wanting more sales and either requesting my help or being required to get it I can't help them get there from here. Make more per car - work more days - or sell more cars. 

Comment by Roger Williams on February 15, 2015 at 11:39am

Steven,
That's a great point, with the manufacturers lower and lower profit margins provided on MSRP many dealers have to mark up hot units on order to off set the balance of the crap the rep persuaded them to buy that will not sell quickly and will eat up floor plan money and typically sell for a loss.
It's obvious if that $4000.00 mark up was unreasonable you wouldn't have bought it right?
A typical customer who pays full MSRP for a car over the next 6 months will pay more profit to their cell phone provider and their insurance carrier than they did the dealership.

Comment by Roger Williams on February 15, 2015 at 11:32am

Brian
I Always enjoy and appreciate your feedback. I see too many sales people who are afraid to ask for fair profit, the manufacturers have imposed their will on so many dealers, they bury them selves in used cars, they take stupid deals all in the name of that new car sales number. So many newbies come into our business and believe "gross profit" on a car is a sin, as a matter of fact they are ashamed if they sell a car and make profit. I wanted to air out the fact that we are a business providing a service that keeps the world rolling. and we deserve fair profit. No need for guilt or shame when you earn fair profit.

Comment by steven chessin on February 15, 2015 at 11:17am

"How much is too much ?"

Looking at this from the customer's perspective -- my own experience  - the car I wanted was quoted at 4000 above "MSRP". The dealer's explanation was that MSRP was suggested price but this model was new and hot and desirable so it costs more. He was such as good salesman he told me that "since we have to lose money on the cars people don't want we have to make money on the cars people do want".  --- That convinced me !!

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