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Comments
But, if that's a serious question, I'd be glad to give you a serious answer.
Just like auto sales people have buying signs they want to hear in discussions and negotiations, the same goes for selling everything else in life - and, as a salesman for more than 30 years, I would hope to be able to recognize these signs even though I don't sell RE for a living.
Landru - I'll ask again: What's the problem with giving a non-serious buyer your best price on selling one's house? They can't shop it. They might know some other party that house shopping and mention it to them. If they come back a month later and say that bottom price is still too much and they want to negotiate further, you can say no. So what's your problem with giving out a bottom price? Against the Auto Salesman's Creed?
"What's the problem, when selling a house, in giving a not-serious prospect your best, bottomline price?"
If there's no problem, why do you bother separating the joy-riders from the real prospects at your real job? Or do you spend time at your real job discussing your bottom-line pricing with those joy riders?
So what's your problem in giving a prospect your bottom line price?
Kinda like an internet car buyer service.
So that's how it works for houses but not for cars? Okay.
Then you're talking about home-buyer prospects.
Then you're back asking about giving non-serious buyers your best price when selling a house.
Now you're claiming I have a problem with giving a prospect a bottom-line price when selling a car.
I think I'll just bow out of this discussion for now. I'll just wait until someone is serious about having a discussion.
If a car sales person gives you their best price early on, there's not much more left to discuss. That's why The Best Price Must Be Left to the End.
They rightly fear their best price, if given out before the buyer has one way or another committed to the rest of the deal, will be shopped around town, around the county, around the state, around the nation via the Web, whatever, and some other dealer will offer the exact same vehicle at a slightly lower price - just enough lower to take their sale away.
This is what leads into the "what do we have to do to sell you a car today?" theme because they need your psychological commitment to making the deal happen inside of their physical space and within their timeframe - or account control is lost because the buyer can go elsewhere for this commodity item, and, usually, get a better priced deal. The infamous "be-back" prospect that's never heard of again.
AND THE HARM IN GIVING A NON SERIOUS PROSPECT THE BOTTOM DOLLAR IS ITS A $%& &@*# WASTE OF TIME....THEY'RE NOT SERIOUS!!!!!!!!!!!!
Let me ask you another - have you ever had a non-serious buyer turn INTO a serious buyer when you gave out your rock-bottom price before they left the building?
Just curious.
Ok who buys a new house that wasn't planning on it when they got up this morning. houses are a little more stationary than cars. cars CAN be an impulse buy. Everyone I have ever sold a car to was "just looking" when I greeted them. What do you say when you go looking to buy a shirt and the lady behind the desk asks "can I help you" It's a defense mechanism. Sales has much more Psychology involved than you know of..... obviously.
b. If so, they may turn into Serious Buyers within a short time frame by checking other RE in the 'hood - and come back to me because, all of a sudden, MY bottom price now looks good after they've seen a few more comparable properties
c. If I hadn't given out that price, in the 10 seconds it takes, they might go away thinking I'm too expensive - when I'm not.
b. I don't deal, in effect, directly with buyers - they're usually represented by an agent. Their agent, if a pro, has already qualified them for a certain price range and it's a waste of their time to check properties outside that range.
And, as for my own understanding of Sales Psych 101, my friend, its excellent - and I've made a wonderful living from sales now for 30 years.
But thanks for asking.
With all that psych knowledge, you oughta be gettin' full MSRPs at 9.9% money with 700+ FICOs, whole life, mop&glow, extended warranties, VIN etch, Lojack - right?
I have decided the difference between selling/buying a house is there are rules
and laws about representation and the in the paperwork upselling doesn't exist.
I feel a lot better about the dealings with real estate than I have about car buying
(and selling the used one).
The approaches toward one's job here have been enlightening.
I do know my next car purchase will be by telephone and or internet. A friend did
this for her Miata. Now I understand why I'm so uncomfortable with the salesman who
does it everyday while I'm just a little customer.
2014 Malibu 2LT, 2015 Cruze 2LT,
But it appears from some previous posts that even when the buyer is definately serious, some dealers still want to play games, like the T&C story. How does the buyer let the dealer know they are really serious and want the best price, period? (I am sitting in your showroom with a checkbook, what else do you want?)
a. The non-serious ones may be first-time buyers, ignorant and unaware of what RE is going for in their targeted neighborhoods.
Car guys see that every day.
b. If so, they may turn into Serious Buyers within a short time frame by checking other RE in the 'hood - and come back to me because, all of a sudden, MY bottom price now looks good after they've seen a few more comparable properties.
Car guys see that every day.
c. If I hadn't given out that price, in the 10 seconds it takes, they might go away thinking I'm too expensive - when I'm not.
Again.
b. I don't deal, in effect, directly with buyers - they're usually represented by an agent. Their agent, if a pro, has already qualified them for a certain price range and it's a waste of their time to check properties outside that range.
That's the car manufacturer's stance.
Salesperson pay and incentive structure.
Auto salespeople are licensed by the government after taking a course and passing a test. Like realtors.
Qualification? If you pass the test and can do the job you get hired. Same for both.
Accountability? What's the huge difference here?
Pay and incentives? The higher the price the consumer pays the more the realtor makes. Like car salepeople except that most car salespeople's pay is capped (the mini or flat) once the deal gets below $500 over invoice or so. $500 over invoice or $500 below invoice, the car salesperson is paid the same. Even if you sell your house for below your target price the realtor will still pick up a nice fat check.
IF CAR SALESPEOPLE GOT PAID ON THE TOTAL PRICE OF THE CAR....I COULD HAVE REITRED BY NOW....LOL
Here, only some states have any licensure laws at all.
Re pay and incentives, see post #3966. If the car guy gets into your pocket for an extra $K, it could mean what, an extra $200-$300, to him/her. If the house guy gets into your pocket for an extra $K, it means an extra $60.
RE agent payplan + car sales
sticker=39572
invoice=36458
diff. = 3114
car sales payplan-
Selling price = 37000+TTF
Gross Prifit = 542
Commission 25%
paycheck = 135.50
RE payplan(if applied to car biz)
Selling price = 37000+TTF
Gross Profit = 542
Commission = 6% (of total selling price)
Paycheck = $2,220
Now if I made that on every car I sold that would be enough to retire in 2-3 years!!!!
My point was that the pay and incentive plans differ between 'tween cars and real estate. Given the payoff, the car guy has a greater incentive to get into the buyers pocket.
Rivertown-
if I need to make another 250 on any deal to cover my bills you bet I'll try for another grand in any given deal!!! Wouldn't you????
What are the chances that a car salesperson will get in the buyer's pocket for an extra $10,000?
Did you forget that everyone believes that all car salesman are independantly wealthy and do this just to pass time thru the day. When you sell 15-20 cars a month and even less in some stores EVERY DEAL MEANS SOMETHING.
Sure, I might. I think I'd be big enough, also, to accept that a buyer would have reason to be suspicious about that extra $1K.
3976 landru2
Apples to oranges; $10K on a house for me would be about 10%, $10K on car would be about 50%. Even so, $10k to the house salesguy would be a 10% kick to his cut; and $10K to the car salesguy be a 1000% kick to his cut. By that comparison, the car salesguy would be 100 times more motivated to get into my pocket.
hondaguy9
Dunno what to say, beyond my opinion that the commission structure hurts both the customer and the salesguy and my observation that, like landru, you're comparing apples to oranges, sales where negotiation is the rule to sales where negotiation would be the exception.
car talk... GOOD
get the hint?
kcram
Host
Smart Shopper and FWI Message Boards
There is often a hostile relationship between car buyers and car sellers. This type of hostility is not as bad between consumers and other types of salespeople.
Many consumers believe they are treated badly by car salespeople and detest the experience of buying a car (even though they may like cars) and one of the ways consumers react is to resolve NOT to be taken advantage of by car salespeople. As a result, consumers go into a dealership like a marine entering a combat zone. I have done things in a dealer showroom that I would not dream of doing with my realtor, jeweler, insurance agent, etc.
make it easier to know you were getting a _low_ price like they advertise. But didn't I hear that they were considering the car business. Anybody know for sure?
Big Orange is on the money; RE commission is negotiable. They don't want people to think that it is... and 1/2 goes to selling 1/2 goes to listing agency... in the agencies 1/2 goes to company, 1/2 goes to salesman. Is that about right?
$200000 house, $12000 commission, $3000 to selling salesman in a four way split...
2014 Malibu 2LT, 2015 Cruze 2LT,
It's ok for a jeweler to make $300 on a $450 watch or $2,200 on that $3,000 wedding ring ~~ it's ok for a Real Estate co. to make almost $15 grand on a $200,000 home, it's ok for the ABC furniture co. to make $2 grand on that $3,000 dining room set, it's ok for the clothing stores to make $350 on a $500 suit, it's ok for a store to make $100 on a $125 pair of Nike tennis shoes.
But a Dealer invests literally millions, and try's to make $200/$2,000 on a $20,000/$50,000 investment and everyone thinks this not a good thing .. hmm, maybe I should open up a few jewelry stores and sell furniture out of the back of them ...
Terry ;-)
I like to read the stories, but I don't really think car dealers are off the the poor house in great numbers.
I'm sure people do pay higher profit margins in other retail situations, but I think the question is why are they willing to pay those prices without even a moments hesitation, but will haggle to the death over a dime on a car deal.
It's because they have the notion, real or otherwise, that car dealers rip people off.
You and I know that not all car dealers do, but then all you have to do is turn on a TV set or radio and hear screamer ads seemingly every other commercial.
Now to be fair, I've heard screamer ads for furniture stores, but can't say I've shopped a furniture store that ran such ads.
Finally, there is the notion in America that your car makes a statement for you. Heck, even my 13yo daughter believes that, as she doesn't like me taking her to school in a 16 year old Buick. She wants to ride in a "cool car."
So car purchases are much more emotional than furniture or jewelry.
But then you already knew that.
What if dealer A "trades" with dealer "B" for you, is holdback not then an issue?
Dealers do have to pay to have a driver swap cars. The amount depends on the distance.
A dealer will ALWAYS be happier selling a car he has in stock and you may well get a better deal.
Good luck!