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Stories from the Sales Frontlines
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A window.
EDIT: I didn't see the abmonishment before I rattled off the answer.
American Honda Motor Co., Inc., posted October sales of 85,864, a decline of 28.0 percent based on the daily selling rate*, compared to record October 2007 results. American Honda year-to-date sales of 1,266,447 represent a 3.6 percent decrease.
Wow......tnx
So why is it typical that if you do come back tomorrow that the price is now $500 higher? Is that punishment for buyers causing you such anxiety?
I'm sure you know after your many years in business that there are some folks (like me) that really do want to think it over for 24 hours before they commit to a 25K+ purchase. We don't all immediately run to every other dealer to shop your price.
Why do we get punished?
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
Because it's a now business. Today is the best price. The price might be higher tomorrow because we'd like you to buy today
From experience however I've never raised the price on someone coming back the next day. But I lowered a price the same day to get them to buy today, not tomorrow.
That's unless you're talking end of the month where the next day rebates disappear and the discount is less.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
I usually like to take a day to think before a major purchase. Lately, as I get older though I just need 30 minutes to get away and go for a coffee or a test drive, talk it over with management (wife) and make a decision. The last time I said I am going to ask for $2000 more off on the new one and $1000 more on the trade in. She thought it would be embarassing and there was no way. But, they went for it....no harm in asking I guess (as long as it isn't too outragious!!!!)
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
From experience however I've never raised the price on someone coming back the next day. But I lowered a price the same day to get them to buy today, not tomorrow. "
In agreement with boomchek.
There is a temporary phenonomenon after the election that leads to higher markets and capital flowing back to badly oversold markets. It's good for a while and raises consumer confidence back some. Do as much as you can before year end. To potential car buyers ; this is your best opportunity in 20-30 years. You've got the used to be big three slicing multiple thousands, big multiples off of msrp, (pressure). The foreign manufacturers will match as much as possible to maintain sales momentum, reputations are for good times.
No fast government help yet for Detroit so act quickly before it appears. If it does appear you've can't cut the same deal recession or not. If it doesn't appear you've got a smaller market place with less competition. The best deals are driven by panic and clearly that is now. So if you are in the market, this is the time to buy. Rather like buying an SUV in July of this year.
A local Ford dealer that is part of a large dealer group has folded
today. This is the 4th Ford dealer to close in our area this year.
Not to mention 4 other domestic brands also.
http://www.9wsyr.com/news/local/story.aspx?content_id=706f164f-304c-4110-87a7-97- 7076b91ca4
today. This is the 4th Ford dealer to close in our area this year.
Did we ever get an answer to what happens when a dealership folds, especially if you have handed over downpayment money?
It would not be nice if you brought in your $10,000 trade for your $25,000 Greedcar KL500 and were left without your trusty (or is that rusty?) trade-in and no chance of getting your new XL500 :sick:
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
It depends on allot of things.
Did the manufacture close them down or did they do it themselves?
Were they opened yesterday and closed today?
Did the Dealer file for Bankruptcy?
Years ago if a man or women told me they would be back then they would do what they say the majority of the time and be back. Now it is a real crap shoot.
I don't begrudge the people for what they do. Everyone wants the best deal. It is our job to figure out if we feel we can put some one out on a price with profit on it or not. Some folks you feel comfortable some you know you will never see again.
Hell I have people with lap tops in my office trying to get quotes from other dealers or banks as I am typing there paper work.
It took the car industry longer to grasp the new way of car shopping then it did the consumer, and there are still dealers after all this time that don't have it figured out. Those are the ones you see closing there doors.
Times are tough but a good dealer with a good base will make it, the weak ones that are falling by the side are only helping the strong ones to survive.
That is so tacky. I guess they are trying to intimidate you with their "power". I hope you suggest that they finish their lap topping in the parking lot.
I occasionally have to deal with customers like that who are obnoxious in the extreme and tell me that so-and-so can beat my price. I always suggest that they run to that vendor and buy before the seller sobers up. If they continue to argue with me I just tell them to run. :mad:
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
Nope. The discussion of how much a car costs to finance per minute proved to be more worthy of debate. :confuse:
Na I let them pound away and answer there questions. Occasionally it works to my advantage sometimes it don't. I have never lost a deal to one of them.
The only time it presents a big problem is when people start suffering from information over load. There are those people out there who get so much info so fast they can't digest it all and confuse themselves to the point that they can't make a decision.
So with them I just start all over from the beggining and explain the process and answer questions.
In this digital age, there should be a dashboard to punch in the floor you want to go....
Hah.....what a joke.....
Who in the right mind, who has his credit score such perfect, would want to buy "imperfect" vehicles????? GM needs to have their Quality score up before they demand the same from the customer.
that is just how much "insecure" the dealer is.
Whenever somebody is telling me to buy NOW, I make sure that I do NOT buy now, at least not from that guy.
I was in the process of a long distance telephone deal (1600 miles north). We gave the customer a ton of money off ($12000+ off a new truck), but they said "no" they gotta have 0% financing. So we bought down the rate to 0% with some of the rebate money but still gave them a huge discount and we beat their local dealer's price and were waiting for a deposit.
They spoke with their mother in law who talked them out of it. We spoke to her and she demanded both 0% and full rebate (not doable).
New month rolls around (November). Deals change and we can't do 0% now. Payments are a little higher and they're kicking themselves for not doing the deal last month.
I was talking to someone about this situation and I think the over protective mother in law should pony up the difference now for talking them out of the deal.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
I do that all the time......inevitably, this causes the customer to have more confidence in us, and personal customer service prevails...
LOL, I don't think I will take much stock in my MIL's opinion. Years ago, she once stated to my FIL that her only requirement was that her new car must have a tape player. She ended up with a brand new 1988 Buick Century.
When salesmen on here talk about customers having no idea what they want it is impossible for me to picture myself so clueless or disinterested in what options are available out there.
Lesson learned.....do not bring the MIL in the picture :sick:
I love it!!!! :shades:
GP
Thx GP, but I lost out on a deal here
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
I love to win the battle but lose the war. On the one hand it's almost sweet revenge to call them up and tell them the price went up $2500.00. Simply for the "I told you so" factor. On the other hand, it cost me about $600.00 to lose three deals.
I've wondered about that before. Typically, how much could a dealership give back to a customer on a $5,000 rebate, and still let them keep the 0% financing (as an example)?
edited: That would be on a $5,000 rebate or 0% interest offer from the manufacturer.
I mean no direspect top tou Boom... But sometimes.... just sometimes when a saleperson says "you should do it now" and they don't..... Then bang the incentive goes away... I have had it happen to me a lot more than ussual this year. Maybe I am a little disgruntled :surprise:
What gets me is when people say they have to think about it. Obviously people have been thinking about it. They have done research..... LOOKED UP THERE TRADE DIDN"T THEY.....
So it just becomes a thing of being "gun shy" not being able to pull the trigger.
People thought about how they had to get directions to the store, thought about what vehicle they wanted to look at...
I mean very rarely (but starnge things do happen) do I have someone come in and say "Hey do you guys have toaster ovens here?"..... No they come here because they have been thinking about it. They actually worked up the nerve to come into a dealership. Then.... and this one I love... You call them on their number and say OK I'll do your number Mr. Customer.... And they say "AHH I just need to sleep on it!" I like to say no problem you can do that tonight but it might be warmer sleeping in th car..."
OK Rant over
GP
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Not to disrespect mplshondadlr, but that's the reason I don't want to sell Hondas anymore.... $200 commission on a $35k Pilot seems kinda low to me, but that's the Honda norm.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Used to be a SP here who when a customer saifd that would not say a word. He would just reach into his filing cabinit, pull out a blanket and a pillow and tell them to he would try to keepo the noise down while they napped. Always good for a laugh and 30% of the time would close the deal
Thank you used car buyers!!!
Man, he catches that 99 out of a 100 times, why couldn't the 1 drop been when the Pats were ahead by 21...
And I'm going to miss Sunday's game as the Cub Scouts are hiking up the Blue Hills...
'21 Dark Blue/Black Audi A7 PHEV (mine); '22 White/Beige BMW X3 (hers); '20 Estoril Blue/Oyster BMW M240xi 'Vert (Ours, read: hers in 'vert weather; mine during Nor'easters...)
If the buyer is concerned about an incentive increasing in their favor, why not do the paperwork on 10/31 using the October incentives and then wait until Nov 1 for the buyer to actually sign if the deal remains the same or gets worse. If the incentive gets better, rip up the original papers and redo using 11/1 as the date of sale? The buyer wins either way and the dealer keeps the sale. Of course the buyer needs to understand and appreciate the favor being offered them and act accordingly. The buyer would have to be agreeable to move quickly on the morning of the new incentive day as it couldn't be drug out forever. Unethical? I don't know.
The manufacturers ought to provide a sneak peek of what the new offers are to the dealer before incentives change so they can get their fence sitter buyers reeled in in case things go south in the next month.
The vehicle has to be registered and insured the day the incentives are in effect. I think some naufacturers you can sign and wait till next month, and some you can't.
Since this was a long distance deal the papers would have to be couriered to the buyer and then sent back.
But anyways, I don't care...I lost out on a commission, but it's not me who's buying the truck... I did all I could, and they'll be paying extra for the same product. :confuse:
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Fair enough......
It just reminds me of my old Honda dealer where $150 flats were the norm on new AND used. :sick:
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
I don't know how things in BC are done, for sure. But the buyer hasn't bought anything until his signature is placed on the forms. No need for insurance until the vehicle is "mine" post signature and down payment check handed across the table. Here in SC, the registration wouldn't be processed until the dealer takes a big folder with a bunch of sales paperwork down to the DMV, usually a 2-4 week turnaround. Wouldn't work on a long distance sale; I was thinking local.
According to one sales course I took one of the most difficult things is answering an objection, and this is an objection. To overcome the objection face it head on;
What is it that you want to think about? You like this car, what is it that is missing?
EXAMPLE: Customer, "I am not sure I can afford it?
Salesperson - If we make the payments fit your budget, can we move forward?
Maybe we can extend the payment a bit longer and lower your payments to leave you a cushion?
Key is once the customer states his objection (which is really just fear of a commitment) salesperson has to say, if we solve that can we get you into this beautiful Crapmobile today.
Let me know if it needs more explaining. This isn't easy. The point is people object but they are just buying time and need assurance.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
A lot fo time you want an objection to come up so that you can tackle it head on. No objection usually means no sale:
"Ok, thanks for the info, test, drive, price, and for all of you time! Bye!"
:confuse:
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Sir, whenever a customer tells me he wants to sleep on it I can always link it one of 3 things. Product, price, or people.
Sir are you happy with the car you picked out? Does it have all the options you want, is it the correct color?
Well if its not that is it the price? Are you comfortable with the price you agreed on?
Well sir if its not that then I owe you an apology. If its not the price or the product then it must be me. What did I do to offend you Sir?
Sappy ole BS canned closes, gotta love them.
Any one ever used the Praying close before?
Customer says they have to go pray about it.
Prayer close #1
Sir I appreciate your need to pray on such an important decision. If it would be OK I would love to help you get guidance on this all important decision. Would you mind if we all joined hands, took a knee and prayed right here in my office.
Prayer close #2
Sir I truly belive it was gods will that brought you here in the first place. If God did not want you and I to do business together he never would have placed us here together at this time in this situation.
I have actually used #2 before on a cynical old mean couple who were spouting the word of god in one breath and cursing me in the next telling me to hurry the hell up and they did not have all GD day.
Good point. Every once in awhile I'll get a telemarketer call that get's thru my line of defenses. They assume they have the sale and ask how many "nellie widgets" I want to buy. I'll say, "I'm not interested." They try to find an objection as to why I wouldn't want a nellie widget. Best not to even give one. There is no counter for, "I'm not interested". If they persist in getting a reason, which they usually do, I repeat "I'm just not interested".
Same idea in car sales. The consumer shouldn't feel obligated to give a reason why they aren't buying. Some do because they feel an explanation is in order. But, if one isn't ready to pull the trigger, it's wise not to let the salesman have the ammunition to unhitch that trigger finger.
I am trying to forget abou that drop :sick: .... GReat pass! But Gaffney "just dropped" the ball
Ahhh the Blue Hills.... Carefull where you go up there... It can get colorfull at times if you know what I mean :lemon:
GP
Also to stay on topic.... When I worked at Quirk I would take my test drives up there. Lots of long windy roads, up hills, both ways...
Have fun LD
Replies to this message:
boomchek (Nov 04, 2008 8:01 pm)
Well to answer your question.... Yes that would be unethical. Dealers get incentives each month. If you know what the incentives are a Dealer can sandbag deals to the next month. That pretty much answers your question. But wait there is more.
All deals have to reported with the customers name and info. It is all done over the internet and once it is done it is done... And all deals have to be done by 11:59pm that night.
Good try though-
GP
Jipster.....I might have to disagree here. A telemarketer calls out of the blue, uninvited. You don't have to give a reason to them for not buying. You didn't call them and tell them "gimme your pitch about nellie widgets".
A car salesperson doesn't go to your house uninvited and drag you out on a test drive and makes you negotiate... you the customer come to us. Now wouldn't that be something if cars were sold door-to-door? :P
Anyways...the customer walks into the showroom and does everything leading up to a deal, including saying he'll buy today, but then decide not to at the very end, then yeah he does owe an explanation as to why he said he'll buy at first and make me go through the whole process.
I'm not here to entertain or amuse you (as Joe Pesci would say).
If you don't want to buy because as someone said you don't like the product, or price, or me then say so.
Overcoming objections is not ammunition to try and make somebody buy a vehicle they don't want. It's a tool to make sure all questions are answered and the customer is totally happy with the purchase. What if the customer's only complaint was the uncomfortable seat in the car, but a power seats would resolve that remedy. That's why the saleperson has to dig to see if there's a solution to a problem.
What if the customer loves the car, and would take it but the shade of blue doesn't vibe with him/her. He loves the price, options, dealership, everything. Do you just then let him go and start shopping all over, or dig deeper and find out the color objections and get the exact shade of blue the customer wants, and in the process saving him time of shopping again...
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Sorry to hear that but it does explain everything...now. :shades:
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
That's the answer I was afraid of.... hard to get around that one without raising red flags sooner or later.
If I ever had a salesperson agree to my offer right off the bat I would say SOLD! I have a number I think the car is worth before I make an offer..
My trouble is that I've never had a salesman agree to my offer. They usually counter off the top of the chart. At least a thousand high. I don't know if they are assuming that this is a dance and I'll come up some or not. At that point I usually tell them thanks for their time but no thanks.
I'm either too dumb or too honest :confuse:
Sometimes if the deal is close I'll want to think it over for a day. For me that's what I'm doing---thinking it over. I've never taken one salespersons number and shopped it to another.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
I'll bet it was where a salesman absolutely KILLS a customer on a deal. I think the title of the show was "Beware the four pounder".
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
"Used to be a SP here who when a customer saifd that would not say a word. He would just reach into his filing cabinit, pull out a blanket and a pillow and tell them to he would try to keepo the noise down while they napped. Always good for a laugh and 30% of the time would close the deal . "
You crack me up sir. Thanks. Whether offering to tuck them in or divine guidance on the package your stories are priceless. Humor deflects the tension and takes the deal out of the adversarial arena and since all are having such a good time why not close the deal and have fun at the same time?