Where to ask for the sale - on the car lot or in the showroom?
Many deals are missed simply because a sales consultant fears to ask for the sale, or simply doesn't know where or when!
The old adage is 90% of the deal is made on the car lot, and 10% is at the write up. By the time a sales consultant makes it through the steps of the sale, at what point do they ask for the sale?
When it's time to do the write up, this should ultimately be the easy part of the sale for both the customer and dealer!
No Fear selling made simple!
Replies to This Discussion
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Permalink Reply by Steve Richards on -
Bobby, I must respectfully disagree. The 90/10 rule is an old adage. A sales consultant's job still requires them to sell the RIGHT CAR on the lot; but their ability present the offer-to-purchase, handle objections, close, and re-close is WAY more important today than in days past. The vastly increased availability of information and the increased levels of competition have put the 90/10 rule in the same place the Model T resides.
The time to ask for the sale is when the sales person has earned the right to ask for the sale AND when all the numbers are in front of the prospective buyer. One (certainly there are others) of the reasons the turnover among sales people has skyrocketed and gross profit has plummeted is most sales people are trained to handle the write-up stage of the sale in the same manner it was done 30 years ago.
Take the internet customer as an example; the vast majority of those deals are DONE prior to the consumer ever arriving at the store; there is little time spent on the "lot". Price is agreed upon prior to the visit. Maybe the ratio is exactly the OPPOSSITE, 10/90.
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Permalink Reply by Bobby Compton on
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I can appreciate your input on this Richard, as I always invite collaboration openly, we all have methods to our madness.
As in "Todays" market place a vital step is to identify exactly what kind of buyer you are dealing with firstly. To use the Internet customer as an example of 10/90 is not at all acurate - the only difference with them is the 90% is "Value Selling on line the same as on the lot - the 10% if done the right way by the Internet Manager should still be the easy part of the sale for both the customer and dealer!
There is a method to my madness of why to identify each type of buyer - Cash Buyer - Payment Buyer - Trade Hot Button - Credit Challenged -Internet shopper and so on, as even 30 years ago were the same issues of today!
If a dealer negotiated every customer the same as the Internet buyer who negotiates an invoice deal, the dealer would be out of business, many have closed in recent times. This is exactly why dealers are scratching their heads on why gross profits have plumeted - they truly need help so that they don't to fall into the "price selling" catagory and be apart of the "value selling" solution!
As far as asking for the sale when earning the right to do so, this is another great point you touch on! I currently train in "todays" market on finding all the objections out on the lot with every type of buyer as stated above - Is this the right color and equipment? Is there anything you would like to add to this vehicle or anything you don't like about it - to truly dig deep with NO Fear selling made Simple.
The reason so many deals are lost is because the Sales Consultant is afraid to ask these Simple questions on the lot or don't know when to. In this case they bring the customer in the showroom to present figures and come to find out they are not completely sold on the vehicle. Now it becomes an uphill battle - if I could would you, or it's time to switch them to another car - wearing the customer out, or to re land them on one they can actually afford. Mislined car deals is what kills deals. Figures shouldn't be the issue until the deal is lined, locked and loaded!
I've found that some trainers knock the yesterday of the car business and it is exactly the yesterday that makes today what it is. Tradition counts, and many many things of the T Model of yesterday works much better than practices of "Today!"
You nailed it on Turn Over, I have a reputation for none of that!
I love the car business, as I was taught early on - if they were all as good as us - they would have our job! Lets keep it going right here on dealerELITE where the best and the brightest collaborate!
We can disagree and still be friends.
Cheers my friend...
Steve Richards said:Bobby, I must respectfully disagree. The 90/10 rule is an old adage. A sales consultant's job still requires them to sell the RIGHT CAR on the lot; but their ability present the offer-to-purchase, handle objections, close, and re-close is WAY more important today than in days past. The vastly increased availability of information and the increased levels of competition have put the 90/10 rule in the same place the Model T resides.
The time to ask for the sale is when the sales person has earned the right to ask for the sale AND when all the numbers are in front of the prospective buyer. One (certainly there are others) of the reasons the turnover among sales people has skyrocketed and gross profit has plummeted is most sales people are trained to handle the write-up stage of the sale in the same manner it was done 30 years ago.
Take the internet customer as an example; the vast majority of those deals are DONE prior to the consumer ever arriving at the store; there is little time spent on the "lot". Price is agreed upon prior to the visit. Maybe the ratio is exactly the OPPOSSITE, 10/90.
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Permalink Reply by NANCY SIMMONS on
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Love this discussion! Absolutely wonderful points, Bobby and Steve! My two cents is this: Price is made to be such a key factor, because we make it that way... We are our own worst enemy, in many cases! Build value on the lot first with dynamic display, a walk around like no other pointing out really neat vehicle specific facts, a little competition comparison, let the vehicle sell itself on the demo drive, let the customer fall madly in love with their vehicle of choice, and then sit down with your prospective buyer. Working out the details of the detail should not be all about price at this point and less confrontational!
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I like less confrontational, great point Nancy!
NANCY SIMMONS said:Love this discussion! Absolutely wonderful points, Bobby and Steve! My two cents is this: Price is made to be such a key factor, because we make it that way... We are our own worst enemy, in many cases! Build value on the lot first with dynamic display, a walk around like no other pointing out really neat vehicle specific facts, a little competition comparison, let the vehicle sell itself on the demo drive, let the customer fall madly in love with their vehicle of choice, and then sit down with your prospective buyer. Working out the details of the detail should not be all about price at this point and less confrontational!
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Permalink Reply by Nico Poullas on
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Cars are sold online or on the lot. Eitherway they each take selling and the rest should go smooth with no complication.
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Permalink Reply by Craig Darling on
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As a fleet and internet director for a top 10 Chevrolet store, my team was able to produce more vehicles than the retail side (new) and a higher gross profit average front and back. The reason? The machine. Landing prospects on the right vehicle was key. Time was spent, in person or on line to identify at least 5 points or "hot buttons". This fits right in with Nancy's comment: No confrontation. Percentage of time on the lot (on line inventory) or in the showroom was always static but one thing each deal had in common, a full, well done, walk around. Each and every time. (Excepting fleet or municipal orders.)
When I hear dealership people complain about the gross available to internet shoppers one thing comes to mind, short-cuts. It has always been that way, technology or not.
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This is the kind of story I like to hear about, gross made in the Internet department and absolutely awesome job on building value. You nailed it Craig - No Short Cuts...
Craig Darling said:
As a fleet and internet director for a top 10 Chevrolet store, my team was able to produce more vehicles than the retail side (new) and a higher gross profit average front and back. The reason? The machine. Landing prospects on the right vehicle was key. Time was spent, in person or on line to identify at least 5 points or "hot buttons". This fits right in with Nancy's comment: No confrontation. Percentage of time on the lot (on line inventory) or in the showroom was always static but one thing each deal had in common, a full, well done, walk around. Each and every time. (Excepting fleet or municipal orders.)
When I hear dealership people complain about the gross available to internet shoppers one thing comes to mind, short-cuts. It has always been that way, technology or not.
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Nice to see you here my brother...
Nico Poullas said:
Cars are sold online or on the lot. Eitherway they each take selling and the rest should go smooth with no complication.
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Permalink Reply by Nico Poullas on
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I remember when you would turn deals on me it use to make me so mad but it made me more determined to do it the right way on the lot.
Bobby Compton said:Nice to see you here my brother...
Nico Poullas said:
Cars are sold online or on the lot. Eitherway they each take selling and the rest should go smooth with no complication.
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Permalink Reply by SCOTT CLARK on
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YOU ASK FOR THE SALE FROM THE MEET AND GREET TO THE END
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Permalink Reply by Mike Stoner on
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I agree with Nancy and Scott.
High gross averages can be had even with internet customers provided it is not your process to hit them with a low ball figure in an attempt to get them in the store. I've posted a video on my page titled "Let The Customer Pour" which towards the end mentions the internet department.
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I agree, please elaborate on your method I would like to hear more!
SCOTT CLARK said:
YOU ASK FOR THE SALE FROM THE MEET AND GREET TO THE END
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