No, it IS NOT THEIR RIGHT to arbitrarily NOT respond to my request made through email forms THE DEALERSHIP OR THE MANUFACTURER PROVIDED for the purpose of obtaining a quote simply because I left the OPTIONAL field of phone number blank. This is completely unprofessional-it's the dealers who behave this way that are not serious.
I don't give a phone number because I don't want to waste my time. I extend the same courtesy to others, I wouldn't be asking for a quote if I wasn't a serious buyer. Don't want to give your quote in writing? Want to get me in there to give the ol' high pressure checkered sport coat sales pitch with the manager and pony show? Forget about it, not interested in playing your little games when I already know more about the car you are trying to sell me than you ever will.
Such dealers should take a hint, get a clue and join the 21st, hell even the 20th century way of doing things over the net. They don't have to give me their best price, JUST RESPOND with an opening quote that lets me know I should take THEM seriously. Who I am is completely irrelevant until I talk to the finance guy.
And what dealers think about getting or losing my business, I really couldn't care less.
No, it IS NOT THEIR RIGHT to arbitrarily NOT respond to my request made through email forms THE DEALERSHIP OR THE MANUFACTURER PROVIDED for the purpose of obtaining a quote simply because I left the OPTIONAL field of phone number blank.
Actually it is their right and no amount of using capital letters is going to change that. Whether or not it is professional or not is a matter of opinion. Now I hate the traditional method of buying cars way more than most but I am smart enough to know I am going to have to have some personal contact. Either face to face or usually phone. You have to give the dealer some reason to trust you just as you have to have a reason to trust them. Like I said before if you don't like the dealer then just don't deal with them. With a winning personality like yours I am sure many dealers will be falling at your feet for your business. I mean how much time did you really waste if you just sent a cut and paste email to the dealer anyway.
The reality is that the internet qoute requests we get is a tiny percentage compared to the floor traffic or phone calls.
When we're so busy that on most days we don't have enough salespeople to help every customer in the showroom, guess who will get the attention first? The showroom customer or an anonymous internet quote.
on most days we don't have enough salespeople to help every customer in the showroom, guess who will get the attention first?
Just curious - if you barely have time for showroom customers and no time for "anonymous internet quotes" then why bother with the expense of an internet presence? It would seem an unnecessary expense.
We have our inventory on our website on the net of all the used cars, and we book service appointments on there as well.
So once in a while we will get emails in the sales dept asking for quotes. We will look after them when we have some time, but we don't emphasize or advertise that we give quotes over email.
I guess what I was refering to in the earlier post is about new car quotes. There's not many of them that we get. We do get a few email requests on used cars however.
I doubt that anyone would call me a typical customer but here's how I've bought new cars during this decade:
- '01 PT Cruiser (internet purchase from out of town dealer) - ordered through autobuytel.com at MSRP when model still hot;
- '02 Chevy Avalanche (internet sale from out of town dealer) - used GMBuyPower to find exactly the vehicle I wanted and traded the PT Cruiser;
- '04 Honda Pilot (local store sale as a repeat customer from same salesman) - never sought internet quotes because store was known to have best prices in town, traded a '99 Odyssey;
- '03 Mazdaspeed (internet purchase from out of town dealer) - local store had the highest prices in Ohio;
- '03 Pontiac Bonneville SSEI (internet purchase from out of state dealer) - again used GMBuyPower to find exactly the equipment desired, traded the Mazdaspeed;
- '05 Honda Pilot (local store sale from same salesman as repeat customer) - traded the '04 Pilot;
- '05 Honda Odyssey (local store sale from same salesman as repeat customer) - traded both the Bonneville and the Avalanche after extensive shopping at local and out of town dealers - internet really not a good option due to the complexity of the transaction; and
- '06 Ford Mustang GT (local store sale after unsuccessful internet tries at several other local stores).
So, eight new vehicles have been purchased since January 2001, four via internet and four in the traditional method.
In none of the internet purchases was I an "anonymous" customer (maybe it helped to use an email address that included my name). Each internet transaction was concluded within 3 days and 2 emails. I probably would not have bought any of those four vehicles at all without the internet.
Yes you are an exception. But see how you came back tot he same Honda salesman do buy sewveral vehicles, wheras your GM purchases were from different dealers?
A FEW dealers are not that interested in Internet quotes, it is not that they are that "busy": MANY do focus too much on price/profit part of the formula while they neglect, quantity and long term relationship part. Sure they talk about relationships, but "most" do not put out the necessary value in that department. Internet is a different channel and has different properties than the showroom. Interestingly, some dealers understand that while other simply use the Internet to drive their showroom traffic (or as advertising)
It has been just said that after the test drive, there is only price that needs to be established and there is no reason to be physically present. Of course, this is the case! However, no seller (in their right mind) would like to be competing over price. Numerous comments here about price being "proprietary" just underline the notion that competing is the last thing on a mind of any (sane) seller. Frankly, the price is NOT proprietary, but a seller may want to keep it a "secret" to dumb down the customer. I have even heard bull like: "I will only give you a price if you agree to buy". For certain: if I do not get a price, I will not buy a thing!
Withholding (price) information may have worked 15 years ago but it is only working on today's uninformed buyers. It is now possible to contact 20-30 dealers for a particular purchase. Obviously, almost no one has that many dealers within 10 minutes of their home (or even commute route). If this expanded search is an Internet age reality, asking people to come in is comical. Clearly, these buyers will end up as minis so if you do not want them, do not give any price info online. If you give no price info, you will not attact those buyers.
Off course: it is easier to hit the volume incentive with the help from a bunch of minis.... Which segment is growing faster? :surprise:
it's their right to do as they please, and they can deal with whatever consequences arise from that decision (like you not buying from them.) but in all honesty, just because YOU are serious and therefore dealers should answer YOUR emails even though you don't provide any information doesn't mean the other guy who does the same thing is serious. dealerships deal with more people than just YOU, and most are not like you. many just are bored at work, and send stupid emails to dealers because they don't feel like running a report, or getting their work done. so dealers have decided that if you are serious, you will include your information so they can contact you. if you happen to be in the minority that is serious but doesn't want to give even a name, well then im sorry. sometimes you have to play by the majority rules, not the ones you make up for yourself.
MANY do focus too much on price/profit part of the formula while they neglect, quantity and long term relationship part.
its funny, but when salespeople on here mention that they work to create a relationship with a customer, most people say that the DON'T WANT one. so lets say most people couldn't care less about having a relationship with their salesperson...why would the dealership then spend time and effort TRYING to get that relationship?
In my experience the internet customer is the least interested in a relationship of any type of customer.
The typical internet customer does not want a relationship he/she wants a price preferable invoice, minus all incentives, with no fees, minus 100 dollars. :surprise:
And they want that so they can shop it around to find someone who has a car that had been on the lot for 366 days that they need to move to hit a bonus objective.
Some of the internet customers, not all but some and this is also true of many regular customers, do not recognize a good price when the see it and so when a good deal comes out they want to shop it. They go shop the price realize it is a good price then come back wanting to buy the car. A lot of times the car they wanted is gone because the next person we offered that price to took it.
This happened this past saturday. One of our salesman had been working with a guy who wanted a left over 2006 LR3. We have I think five or six left that are fresh with no miles and then a few more that are demos with 5,000 to 7,000 miles.
He hadn't even driven one yet but had been emailing dealers al over new england. We had given him a price on our lowest price no miles LR3 but it took another week of emails to get him to come in and drive one. So he finally drives it and after the drive he pulls out all of these emails from other dealers saying he wants us to beat this prices.
We don't have a fresh LR3 that is priced low enough to beat those prices and after looking at it more closely no one could hit that price point with a fresh LR3.
We tell him that those dealers are quoting him on demos and we thought he wanted a no miles car.
He says he does want a no miles car and that is what these are... :confuse:
We show him the invoice on a service loaner/demo we have and that even with the marketing support on the left over 2006s we could not meet his price let alone beat it. Then we show him the service loaner program information to let him see how that can get us down to his price point as long as he is ok with 5,000 miles.
He won't hear any of it he calls us liars and tells us to meet his prices... :mad:
We tell him we can't meet that price on a no miles car and that we are sorry. He says that he will have to go up to Boston and buy the car there then since we won't deal with him honestly and that he will shop the prices around some more.
Just think that over for a minute.
Instead of believing his local dealer, he only lives 20 minutes away from our dealership, and trusting all of the official Land Rover bulletins that we are showing him he believes a price quote printed out from an email from a dealer over a hundred miles away.
Be interesting to see what happens if he makes the trip all the way up to Boston.
I think the salesperson idea of a relationship is to keep selling at high profit and they often do not have the will and/or power to overcome this tendency. Customers do NOT want that but they do want real service. Salespeople are supposed to inform the buyers and help them to make the "best" decision: best for the consumer value...
For example, I think that I would work "harder" (by lowering prices) to attract my most local customers because that would keep them coming back for additional profitable services I would get to sell. Underpricing the out of town customers makes less sense because no one will drive 200+ miles for service. However, I have observed that happening much too often!
wow! 8 cars in 6 years.. and some of them you had for less then a year! Isn't cheaper to rent them instead of buying them new and trading them in, loosing as much as 30% for the first year depreciation?
many salespeople do have the customer's needs in mind. many customers of course, are not likely to believe that. because this relationship over the years has been lacking in trust, i don't know that either side will ever trust the other. either way, if you want a relationship, go to a dealer that DOES foster those. there are some who truly want to make your car buying experience pleasant. avoid those who dont. many people don't care about relationships, and those people are just happy making this a one time thing. there are dealerships for those people too.
personally, im willing to pay a little more to have a pleasant experience at a dealer i can trust...but that's me. to each their own!
I am happy to pay a little extra to get a little extra; most consumers should feel the same way. However, I have been very disappointed with many of my local dealerships. Everytime I make an appearance, they try to rip me off and even STEAL miles from my car.
As such, I now treat each visit as a separate transaction because that is the way the other side treats me: I really have no choice if I care about my own financial well being.
Charter member of chronic car buyer anonymous. I got killed on the PT Cruiser. The Bonneville was so cheap, it really wasn't all that bad. Had a 0 percent interest loan on the Avalanche. Lost a grand total of $74 (seventy four dollars) on the Mazdaspeed.
Those days are past now - the stable is, well, stable.
For starters, let me say that I appreciate your participation here & on other Edmunds boards. I wish you sold BMW's.
I tend to be loyal, but it's hard in an environment in which the turnover is what it is. I generally buy vehicles & keep them for a lot of years. When I'm ready to buy the next one, what are the odds that I can deal with the same salesperson?
Poor, I think.
I was beyond turned off by the local Lexus store (& the Audi one too, for that matter) when I was shopping in '00. I'm confident that not one soul in either organization is still there, in terms of sales staff, so I should probably give them another shot, if I were that way inclined.
I grew up in small towns where it was possible (& common) to develop lifelong relationships with salespeople. I followed a Honda (motorcycle) parts guy to another dealership way across town because I knew & liked him & he did a good job.
I just read through this entire topic and had a couple of requests for you. I've struggled just like anyone else trying to find a great method that works for turning these internet leads into real deals that purchase from ME.
If possible, can you e-mail me your templates for initial responses? Based on what you are saying, you have a high closing percentage for your customers. What,roughly, is that closing percentage? Also, are there specific word tracks that you use or questions you ask during that initial conversation that you believe help turn these leads into sales?
I don't share company information and I hope you understand.
I don't use many templates. They are too canned and impersonal in my book. Yes, I type a lot.
We do have an Auto Response that go's out immediatly. It let's the people know we did receive thier inquiry and that someone from our Internet Department will be contacting them shortly.
Isell: come on, you do not share pricing... that is just mean. But your unwillingness to share with your fellow salesman is just priceless! Ok, I just could not resist that!
How about giving a response along the line of Here's our price (give a reasonable one) If you come in and talk with us within the next XXX days, we may be able to give you $$$ discount.
If you finance through us, we'll give you even more discount :-))
That's pretty much our response, but5 many internet shoppers don't like that because their whole point is to get a price without setting a foot into the dealership.
Isell, I'm not quite sure I understand why you won't share that information. We're on complete opposite sides of the United States. I don't think we'll ever be in competition.
I could just go to your website and submit an inquiry, but I thought I would save you the hassle of a bogus lead.
Also, what is your average closing percentage on these leads? You didn't mention that.
I have a fellow salesman here in Georgia who worked at a store in WA. He told me that the market is very strange there. Where most dealerships do not give out pricing over the internet. I wonder if this is where the advantage comes from. The dealerships are actually working together and that is why you are able to use the phone call approach. It has not worked for me here in Atlanta, but I was willing to give it a try.
Also, what is your average closing percentage on these leads? You didn't mention that.
I can understand why he wouldn't want to share this info. Just like when people ask us how many members we have, and whether Forums postings are up or down, we don't share. It's proprietary information, and it's just generally good business sense to keep it that way.
MODERATOR /ADMINISTRATOR Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name. 2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h) Review your vehicle
........ so now you just gave him an easy out. Thanks, Kirstie. Way to let the posters just run with the discussion without interference from the hosts.
Sharing the closing percentage could not harm anyone. It can only help. It's his perogative, but he's telling me that he's got a great way to run his internet department. I would like to learn to be a better salesman. So I'm asking for his help and would like to know if his closing percentage is any better than ours. Simple as that.
Hosts interfere all the time... that's our job, and we're not robots. We have opinions.
And of course you are welcome to ask him, but if he says "no," then it's considered harrassing to continue to prod him for the info.
Simple as that.
MODERATOR /ADMINISTRATOR Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name. 2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h) Review your vehicle
I'd caution anyone that considers using a template developed in one part of the country to be very careful how they use it in another part of the country. I have several offices from Miami to Hartford to Missoula.
Customers (or potential customers) can read the same words and receive a different message. Therefore, we tailor the message for different parts of the country. It's kind of like knowing your audience while preparing a presentation.
Also, I certainly agree with isell on not providing company developed (or purchased) information. My company shared way to much information a few years ago concerning what I considered trade secrets. I raised a red flag early, but was told they had a strategy. That strategy hurt us and those responsible are gone.
Thanks for your input. My last post was erased because I offended someone, so I'll change up my content.
I understand where you're coming from, however, the information that his company has for use is not a trade secret. Hundreds of consumers can access it every month. I can just goto his dealership's website and get all the information I need by posing as a consumer. I didn't want to do that, but I guess I will.
As far as a discussion of percentage of sold leads, I can't see where that information could be abused. However, I'm not omniscient, so I may not be seeing something.
I'm rephrasing my entire question, Isellhondas. Is there anything that you can share that will help me increase my closing percentage with internet leads?
You have toned down your posts from when you first came to these forums.
You have to have great phone skills in order to have a high close rate. Many sales are caused by the customer's perception of you when you talk to them on the phone.
Otherwise you wil come off as "just another typical salesman" and, quite frankly, that was my initial impression of you based on some of your posts.
Otherwise you wil come off as "just another typical salesman" and, quite frankly, that was my initial impression of you based on some of your posts.
Not entirely sure how to respond to that.
I guess I'm going to stop the line of questioning because I'm not getting any real information. I know that 'great phone skills' are necessary, but that's nothing specific.
It's not necessary to respond to this post, Isellhondas. This is just my opinion now. If I am just another typical salesman, wouldn't in be in your interests to educate and help so that I don't keep besmirching the good names of salesmen around the world?
Just my thoughts, but this reminds me of a guy I play poker with. He refuses to let us know what 'tells' he picks up on because he wants to keep taking our money. As long as he has the advantage, he doesn't need to worry about the competition. I'll share those 'tells' because I want us all to continue to get better and increase our skills. When you start playing with people of better and better skill, you can only become great yourself. Some folks are just different I guess. I don't mind helping.
I think it is important to sincerely believe that you are selling a product that will truly benefit the customer.
If you believe in the product you are selling, the customer can sense that you are sincere in trying to help them find a product that best meets their needs and they will be more likely to buy your product.
Moo, I think that the fact you are selling Hondas means you've already won 90% of the battle. It's a great product, and from what I can tell, Honda customers are pretty "together" -- better credit situations than the customer base of the other mass brands, more highly educated, etc.
I think that if you play off that, you'll see results. You don't have to give away the farm, but if you're more direct and empathetic with your customers, I bet you see a payoff.
What's your close rate on internet leads moo? I threw out 5% in a post about a month ago, and isell said that was not a high close rate. So, I'm guessing around 10%-15% would be considered high.
Demographics could also play a big role. Seems to be a big anti-dealership/salesmen sentiment in the California market. Maybe, you need to move to Washington?
My time is expensive! Thus, my view: there is no reason to show up unless it is to pay and pick up the vehicle. I have managed not to show up a couple of times and have the vehicles delivered: that is the BEST!
Having a vehicle delivered would be ideal. I think I'll shoot for that next time.
What these sales types don't get is that they may be at work while they are dealing with us, but we (buyers) are using our spare time which (to me at least) is way more valuable.
when i was the internet manager at my store, i had read somewhere that the national average for internet customers that are closed is about 2%. i was averaging around 10% of my leads. when people would tell me why they picked me over someone else, it was because i spelled everything out up front. i would break down the options on the car they were interested in, msrp, invoice, our discount, any rebates, and the final price. i would do my best to respond to EVERY email that came in within a half hour if possible. I never used canned responses, and typed everything out for each email. If you're sincere, open, honest, and timely in your reponse, i think you'll do fine.
Isell doesn't give numbers, and that works for him. I gave numbers, and it worked for me. i guess it just depends on what youre strengths are, and go from there. best of luck moo!
Isell: now that I realize that you are in WA, I understand a lot more about why your practices are so successful! :surprise: Northwest is probably one of those markets where getting a lot of quotes is not easy because there is no adequate population/dealer density. There is not very much competition between dealers, not if you compare that market to CA or Eastern seaboard along 95.
For reference: A couple of years ago I tried to buy a Toyota for my parents and the WA prices and selection were so bad that I ended up buying out on the East Coast and shipping the vehicle to Seattle. That still saved my folks a handful of cash. :shades:
BTW: CA is not so bad it is just very competive for both dealers and residents. Furthermore, it has some nasty laws that protect consumers much more than in other states. For example, doc fees are legally capped at under $50!
Thene: typical closing rates of all online businesses are under 3%? The low cost does not just encourage a lot more comparison shopping, it also allows less serious folks to play around without the expense of leaving their chair. If anyone breaks 3%, s/he is doing something right in my book!
because closing rates ARE so low, salespeople (especially those who receive a high volume of inquiries) have to weed through the emails a lot more. fortunately (or unfortunately?) i didn't get a high volume of emails. I sold anywhere from 6-8 cars a month just from the internet (we were a small store doing about 40 cars new and used). i had the liberty of being able to reply to ALL emails. someone like Isell probably gets hundreds and thousands of emails a month, and there just isnt time to deal with those who don't want to include anything other than "my name is john and i want an accord. give me your best price".
it made me feel good when a customer would tell me that the car the bought from me was the easiest transaction they had ever had.
Folks just do not understand the meaning of easy: Go to Macys buy a toaster at full MSRP! Even easier, buy at some place like Amazon for 20% less without getting off your duff but then you will have to wait for it a about a week or maybe two. You can avoid paying sales taxes (but you are not supposed to) on it too unless you life in the same state as the seller. Hard and more advanced: get it from elsewhere online by collecting click-thru funds and digging up discount codes but the final price is another 20-40% lower. But your search effort will be non-trivial!
OK, so you are not going to cut 20% off for cars because the markup is not as high but 5-10% below a "decent" deal might be doable if one is to shop online and do it "right"! The system is not intended to make it easy because everyone could do it then... But you may still come out ahead if you invest additional few hours of typing... and putting up with BS.
Another important point: the deals at "real cost" are only possible because there are enough dorks paying "too much"! The inadvertent side effect is that the money flows from the uninformed dorks into the pockets of anal or OVERinformed and the dealers are just a conduit for that flow. :surprise:
dont get me wrong, the deal wasnt "easy" because it was MSRP. my internet prices ranged from a hundred above invoice to a couple of hundred below, depending on the car, with no negotiation at all. my goal was to just move units. if you walked in the door with that email in hand, we'd just write up the paperwork and be done. no numbers being changed, no unannounced fees, nothing. yes, we had dealer conveyance, but that was indicated (along with the amount) in the email. now granted, i had no control over the finance guy, and what he wanted to try to push to sell, but none of that came from me.
i tried to sell cars the way i wanted to be sold a car. straight up and honest. was it the absolute best best deal ever on the car? probably not. but it was a great price very easily.
Comments
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
I don't give a phone number because I don't want to waste my time. I extend the same courtesy to others, I wouldn't be asking for a quote if I wasn't a serious buyer. Don't want to give your quote in writing? Want to get me in there to give the ol' high pressure checkered sport coat sales pitch with the manager and pony show? Forget about it, not interested in playing your little games when I already know more about the car you are trying to sell me than you ever will.
Such dealers should take a hint, get a clue and join the 21st, hell even the 20th century way of doing things over the net. They don't have to give me their best price, JUST RESPOND with an opening quote that lets me know I should take THEM seriously. Who I am is completely irrelevant until I talk to the finance guy.
And what dealers think about getting or losing my business, I really couldn't care less.
Actually it is their right and no amount of using capital letters is going to change that. Whether or not it is professional or not is a matter of opinion. Now I hate the traditional method of buying cars way more than most but I am smart enough to know I am going to have to have some personal contact. Either face to face or usually phone. You have to give the dealer some reason to trust you just as you have to have a reason to trust them. Like I said before if you don't like the dealer then just don't deal with them. With a winning personality like yours I am sure many dealers will be falling at your feet for your business. I mean how much time did you really waste if you just sent a cut and paste email to the dealer anyway.
Let's leave the psychological analysis to the professionals and stick to the car buying topic here.
tidester, host
If you don't, hey, another store will.
When we're so busy that on most days we don't have enough salespeople to help every customer in the showroom, guess who will get the attention first? The showroom customer or an anonymous internet quote.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Just curious - if you barely have time for showroom customers and no time for "anonymous internet quotes" then why bother with the expense of an internet presence? It would seem an unnecessary expense.
tidester, host
So once in a while we will get emails in the sales dept asking for quotes. We will look after them when we have some time, but we don't emphasize or advertise that we give quotes over email.
I guess what I was refering to in the earlier post is about new car quotes. There's not many of them that we get. We do get a few email requests on used cars however.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
- '01 PT Cruiser (internet purchase from out of town dealer) - ordered through autobuytel.com at MSRP when model still hot;
- '02 Chevy Avalanche (internet sale from out of town dealer) - used GMBuyPower to find exactly the vehicle I wanted and traded the PT Cruiser;
- '04 Honda Pilot (local store sale as a repeat customer from same salesman) - never sought internet quotes because store was known to have best prices in town, traded a '99 Odyssey;
- '03 Mazdaspeed (internet purchase from out of town dealer) - local store had the highest prices in Ohio;
- '03 Pontiac Bonneville SSEI (internet purchase from out of state dealer) - again used GMBuyPower to find exactly the equipment desired, traded the Mazdaspeed;
- '05 Honda Pilot (local store sale from same salesman as repeat customer) - traded the '04 Pilot;
- '05 Honda Odyssey (local store sale from same salesman as repeat customer) - traded both the Bonneville and the Avalanche after extensive shopping at local and out of town dealers - internet really not a good option due to the complexity of the transaction; and
- '06 Ford Mustang GT (local store sale after unsuccessful internet tries at several other local stores).
So, eight new vehicles have been purchased since January 2001, four via internet and four in the traditional method.
In none of the internet purchases was I an "anonymous" customer (maybe it helped to use an email address that included my name). Each internet transaction was concluded within 3 days and 2 emails. I probably would not have bought any of those four vehicles at all without the internet.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
It has been just said that after the test drive, there is only price that needs to be established and there is no reason to be physically present. Of course, this is the case! However, no seller (in their right mind) would like to be competing over price. Numerous comments here about price being "proprietary" just underline the notion that competing is the last thing on a mind of any (sane) seller. Frankly, the price is NOT proprietary, but a seller may want to keep it a "secret" to dumb down the customer. I have even heard bull like: "I will only give you a price if you agree to buy". For certain: if I do not get a price, I will not buy a thing!
Withholding (price) information may have worked 15 years ago but it is only working on today's uninformed buyers. It is now possible to contact 20-30 dealers for a particular purchase. Obviously, almost no one has that many dealers within 10 minutes of their home (or even commute route). If this expanded search is an Internet age reality, asking people to come in is comical. Clearly, these buyers will end up as minis so if you do not want them, do not give any price info online. If you give no price info, you will not attact those buyers.
Off course: it is easier to hit the volume incentive with the help from a bunch of minis....
my two cents...
thene
its funny, but when salespeople on here mention that they work to create a relationship with a customer, most people say that the DON'T WANT one. so lets say most people couldn't care less about having a relationship with their salesperson...why would the dealership then spend time and effort TRYING to get that relationship?
just curious...
-thene
In my experience the internet customer is the least interested in a relationship of any type of customer.
The typical internet customer does not want a relationship he/she wants a price preferable invoice, minus all incentives, with no fees, minus 100 dollars. :surprise:
And they want that so they can shop it around to find someone who has a car that had been on the lot for 366 days that they need to move to hit a bonus objective.
Some of the internet customers, not all but some and this is also true of many regular customers, do not recognize a good price when the see it and so when a good deal comes out they want to shop it. They go shop the price realize it is a good price then come back wanting to buy the car. A lot of times the car they wanted is gone because the next person we offered that price to took it.
This happened this past saturday. One of our salesman had been working with a guy who wanted a left over 2006 LR3. We have I think five or six left that are fresh with no miles and then a few more that are demos with 5,000 to 7,000 miles.
He hadn't even driven one yet but had been emailing dealers al over new england. We had given him a price on our lowest price no miles LR3 but it took another week of emails to get him to come in and drive one. So he finally drives it and after the drive he pulls out all of these emails from other dealers saying he wants us to beat this prices.
We don't have a fresh LR3 that is priced low enough to beat those prices and after looking at it more closely no one could hit that price point with a fresh LR3.
We tell him that those dealers are quoting him on demos and we thought he wanted a no miles car.
He says he does want a no miles car and that is what these are... :confuse:
We show him the invoice on a service loaner/demo we have and that even with the marketing support on the left over 2006s we could not meet his price let alone beat it. Then we show him the service loaner program information to let him see how that can get us down to his price point as long as he is ok with 5,000 miles.
He won't hear any of it he calls us liars and tells us to meet his prices... :mad:
We tell him we can't meet that price on a no miles car and that we are sorry. He says that he will have to go up to Boston and buy the car there then since we won't deal with him honestly and that he will shop the prices around some more.
Just think that over for a minute.
Instead of believing his local dealer, he only lives 20 minutes away from our dealership, and trusting all of the official Land Rover bulletins that we are showing him he believes a price quote printed out from an email from a dealer over a hundred miles away.
Be interesting to see what happens if he makes the trip all the way up to Boston.
For example, I think that I would work "harder" (by lowering prices) to attract my most local customers because that would keep them coming back for additional profitable services I would get to sell. Underpricing the out of town customers makes less sense because no one will drive 200+ miles for service. However, I have observed that happening much too often!
personally, im willing to pay a little more to have a pleasant experience at a dealer i can trust...but that's me. to each their own!
-thene
As such, I now treat each visit as a separate transaction because that is the way the other side treats me: I really have no choice if I care about my own financial well being.
With your attitude, it's no wonder you haven't been able to buy a car after TWO YEARS!
For your information, our store has received ZERO complaints to the BBB in the last three years!
Hopefully some NY store will put up with your nasty attitude and sell you the Hyundai of your dreams!
People who don't give a phone number or worse yet, a phony phone number are RARELY serious buyers!
Those days are past now - the stable is, well, stable.
I tend to be loyal, but it's hard in an environment in which the turnover is what it is. I generally buy vehicles & keep them for a lot of years. When I'm ready to buy the next one, what are the odds that I can deal with the same salesperson?
Poor, I think.
I was beyond turned off by the local Lexus store (& the Audi one too, for that matter) when I was shopping in '00. I'm confident that not one soul in either organization is still there, in terms of sales staff, so I should probably give them another shot, if I were that way inclined.
I grew up in small towns where it was possible (& common) to develop lifelong relationships with salespeople. I followed a Honda (motorcycle) parts guy to another dealership way across town because I knew & liked him & he did a good job.
I think those days are gone.
I'm very sorry it's so.
Remember King Arthur's last words:
"The old order changeth, yielding place to new, and God fulfills himself in many ways."
I just read through this entire topic and had a couple of requests for you. I've struggled just like anyone else trying to find a great method that works for turning these internet leads into real deals that purchase from ME.
If possible, can you e-mail me your templates for initial responses? Based on what you are saying, you have a high closing percentage for your customers. What,roughly, is that closing percentage? Also, are there specific word tracks that you use or questions you ask during that initial conversation that you believe help turn these leads into sales?
Let me know if you still have my e-mail.
Thanks in advance.
-Moo
I don't use many templates. They are too canned and impersonal in my book. Yes, I type a lot.
We do have an Auto Response that go's out immediatly.
It let's the people know we did receive thier inquiry and that someone from our Internet Department will be contacting them shortly.
Moo: do you have any decency?
Here's our price (give a reasonable one)
If you come in and talk with us within the next XXX days, we may be able to give you $$$ discount.
If you finance through us, we'll give you even more discount :-))
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Isell, I'm not quite sure I understand why you won't share that information. We're on complete opposite sides of the United States. I don't think we'll ever be in competition.
I could just go to your website and submit an inquiry, but I thought I would save you the hassle of a bogus lead.
Also, what is your average closing percentage on these leads? You didn't mention that.
I have a fellow salesman here in Georgia who worked at a store in WA. He told me that the market is very strange there. Where most dealerships do not give out pricing over the internet. I wonder if this is where the advantage comes from. The dealerships are actually working together and that is why you are able to use the phone call approach.
It has not worked for me here in Atlanta, but I was willing to give it a try.
Any decent explanation for me, Isellhondas?
-Moo
I can understand why he wouldn't want to share this info. Just like when people ask us how many members we have, and whether Forums postings are up or down, we don't share. It's proprietary information, and it's just generally good business sense to keep it that way.
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Sharing the closing percentage could not harm anyone. It can only help. It's his perogative, but he's telling me that he's got a great way to run his internet department. I would like to learn to be a better salesman. So I'm asking for his help and would like to know if his closing percentage is any better than ours. Simple as that.
-Moo
And of course you are welcome to ask him, but if he says "no," then it's considered harrassing to continue to prod him for the info.
Simple as that.
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I'd caution anyone that considers using a template developed in one part of the country to be very careful how they use it in another part of the country. I have several offices from Miami to Hartford to Missoula.
Customers (or potential customers) can read the same words and receive a different message. Therefore, we tailor the message for different parts of the country. It's kind of like knowing your audience while preparing a presentation.
Also, I certainly agree with isell on not providing company developed (or purchased) information. My company shared way to much information a few years ago concerning what I considered trade secrets. I raised a red flag early, but was told they had a strategy. That strategy hurt us and those responsible are gone.
Thanks for your input. My last post was erased because I offended someone, so I'll change up my content.
I understand where you're coming from, however, the information that his company has for use is not a trade secret. Hundreds of consumers can access it every month. I can just goto his dealership's website and get all the information I need by posing as a consumer. I didn't want to do that, but I guess I will.
As far as a discussion of percentage of sold leads, I can't see where that information could be abused. However, I'm not omniscient, so I may not be seeing something.
I'm rephrasing my entire question, Isellhondas. Is there anything that you can share that will help me increase my closing percentage with internet leads?
Humbly and respectfully,
Moo
You have toned down your posts from when you first came to these forums.
You have to have great phone skills in order to have a high close rate. Many sales are caused by the customer's perception of you when you talk to them on the phone.
Otherwise you wil come off as "just another typical salesman" and, quite frankly, that was my initial impression of you based on some of your posts.
Not entirely sure how to respond to that.
I guess I'm going to stop the line of questioning because I'm not getting any real information. I know that 'great phone skills' are necessary, but that's nothing specific.
It's not necessary to respond to this post, Isellhondas. This is just my opinion now. If I am just another typical salesman, wouldn't in be in your interests to educate and help so that I don't keep besmirching the good names of salesmen around the world?
Just my thoughts, but this reminds me of a guy I play poker with. He refuses to let us know what 'tells' he picks up on because he wants to keep taking our money. As long as he has the advantage, he doesn't need to worry about the competition. I'll share those 'tells' because I want us all to continue to get better and increase our skills. When you start playing with people of better and better skill, you can only become great yourself. Some folks are just different I guess. I don't mind helping.
-Moo
If you believe in the product you are selling, the customer can sense that you are sincere in trying to help them find a product that best meets their needs and they will be more likely to buy your product.
Moo, I think that the fact you are selling Hondas means you've already won 90% of the battle. It's a great product, and from what I can tell, Honda customers are pretty "together" -- better credit situations than the customer base of the other mass brands, more highly educated, etc.
I think that if you play off that, you'll see results. You don't have to give away the farm, but if you're more direct and empathetic with your customers, I bet you see a payoff.
Demographics could also play a big role. Seems to be a big anti-dealership/salesmen sentiment in the California market.
Maybe, you need to move to Washington?
What these sales types don't get is that they may be at work while they are dealing with us, but we (buyers) are using our spare time which (to me at least) is way more valuable.
I'm glad I escaped So. Calif and I know I couldn't have lasted in this business in that snakepit.
Isell doesn't give numbers, and that works for him. I gave numbers, and it worked for me. i guess it just depends on what youre strengths are, and go from there. best of luck moo!
-thene
For reference: A couple of years ago I tried to buy a Toyota for my parents and the WA prices and selection were so bad that I ended up buying out on the East Coast and shipping the vehicle to Seattle. That still saved my folks a handful of cash. :shades:
BTW: CA is not so bad it is just very competive for both dealers and residents. Furthermore, it has some nasty laws that protect consumers much more than in other states. For example, doc fees are legally capped at under $50!
Thene: typical closing rates of all online businesses are under 3%? The low cost does not just encourage a lot more comparison shopping, it also allows less serious folks to play around without the expense of leaving their chair. If anyone breaks 3%, s/he is doing something right in my book!
because closing rates ARE so low, salespeople (especially those who receive a high volume of inquiries) have to weed through the emails a lot more. fortunately (or unfortunately?) i didn't get a high volume of emails. I sold anywhere from 6-8 cars a month just from the internet (we were a small store doing about 40 cars new and used). i had the liberty of being able to reply to ALL emails. someone like Isell probably gets hundreds and thousands of emails a month, and there just isnt time to deal with those who don't want to include anything other than "my name is john and i want an accord. give me your best price".
it made me feel good when a customer would tell me that the car the bought from me was the easiest transaction they had ever had.
-thene
OK, so you are not going to cut 20% off for cars because the markup is not as high but 5-10% below a "decent" deal might be doable if one is to shop online and do it "right"! The system is not intended to make it easy because everyone could do it then... But you may still come out ahead if you invest additional few hours of typing... and putting up with BS.
Another important point: the deals at "real cost" are only possible because there are enough dorks paying "too much"!
i tried to sell cars the way i wanted to be sold a car. straight up and honest. was it the absolute best best deal ever on the car? probably not. but it was a great price very easily.
anyways, my two cents...
-thene
And then there was the lady to drove to OREGON to save 100.00!