The Traditional 4Square In Todays Market
Having first started selling cars in 1982, I was taught the traditional 4square. At this Toyota dealership in the Denver Colorado area, you hardcore 4square every customer or they turned the write-up to another salesperson who could or would. You never discounted price if there was a trade in, you always over allowed. Banks always required 1/3 cash down and you always hit the customer 3 times in each box before writing their offer down. Over the years, I've now seen desk managers accept write-ups with incomplete credit apps, with incomplete information about the car they are selling, and with just the customers offer written in each box with the salesperson not even attempting to set the customer up with higher amount. I know over the years customers have become increasingly more educated and tolerate less bull from sales people. But should a good sales person be able to 4square any customer no matter how educated or is the 4square out dated and should not be used anymore?
Replies to This Discussion
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Permalink Reply by Mike Phillips on
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This seems fun; good debate topic!
I am a fan of both, I think that each dealer needs to assess their own strengths determine their process and stick to it. The key is that whatever process you stick to cannot be compromised, or you stand the potential to compromise your integrity and gross profit both. and like Craig mentioned above, stay compliant and honest. Everyone needs to be moving in unison in a dealership and not running over one another or being a graduate of MSU, and no Jack that's not Missouri State University, it's Making S*#$ Up. If you still use the 4-square, more power to you, I am REALLY good at presenting one of those, made a lot of gross and had a lot of fun. While I think it still works for some people, I do feel it's a bit antiquated.
Our sales teams now are trained to do a finance flip chart, followed by a finance menu presentation. This takes all the mystery out of the "negotiation" and yes, we present starting at 36 months with 30% cash down. That still allows us to adjust term and down payment, while having full disclosure with the consumer, and prevents negotiation on the price of the vehicle AND the trade. Another bonus, since everything is already on the table it removes fear from the customer and since they are still working with the sales person that have spent time building rapport with, we sell a lot more F&I product out front, before they ever meet the F&I Manager.
In my opinion, as the internet continues to advance and thrusts the auto industry into the future with it, I think ultimately, in time stores that want to have continued long term success will take that direction as well.
There are my 2 (or 10) cents!
-Mike -
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Permalink Reply by aaron kominsky on
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Permalink Reply by Rick Bryant on
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Well put, seems like most sales managers tell their sales staff to always go back to the basics. Looks like they should follow their own advise. The car business has not changed only our methods.
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YES indeed Terry electronic printout is perfect Choices is the key !
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Permalink Reply by Ralph Rasmuson on
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There are four BASIC things the customers are concerned about: How much they are paying for ours, How much they are getting for theirs, How much out of pocket today, and how much will I have to shell out each month. (A few others but these are the basics) These topics all need to be addressed and we all know it will pretty much boil down to down and monthly. The four square addresses the issues the customer needs to know. It is NOT the four square that is the problem. It is the presentation of that four square.
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Permalink Reply by Craig Lockerd on -
yes,yes and another yes!
Ralph Rasmuson said:There are four BASIC things the customers are concerned about: How much they are paying for ours, How much they are getting for theirs, How much out of pocket today, and how much will I have to shell out each month. (A few others but these are the basics) These topics all need to be addressed and we all know it will pretty much boil down to down and monthly. The four square addresses the issues the customer needs to know. It is NOT the four square that is the problem. It is the presentation of that four square. -
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Permalink Reply by Craig Lockerd on
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That's cool
Terry Gibson said:Ray,
First let me say great subject, let put our customer hat on for a minute, how do customers want to buy ? So to help answer that question in your store what is your fiance penetration ? 60 70 % if so then the modern day consumer wants choices right ?
With that said, let them buy the way the want to and one way to do that is a visual that's clear and gives the customer choices.
Now whats the first thing you see ? You`ve Got Options!
This is the way the modern day consumer wants to buy, in fact menu selling in finance has been very successful so be transparent with the customer give them Options. -
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Permalink Reply by David L Hoier on
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The concept of the 4 square is still a viable closing tool. Remember that the good deal is when the customer feels that they won. If we don't show resistance (negotiation) then they will feel that they left money on the table. I do agree that the language needs to be adapted relative to the customer and that the phrases used must be updated. But the idea of "separate your battle grounds" still applies. Remember, we don't negotiate because we want to (we want them to pay sticker), we negotiate because the customer requires it. I have seen numerous changes in this industry in my 30+ years, but some things stay the same. Their is a reason why we teach the "basics", times change (computers,cell phones,etc.), but people still buy care based upon emotion.
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Permalink Reply by Dennis M. Sims on
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Ray,
I learned four square from Jackie B. Cooper. He's dead! -
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I'm with Terry. A printed Worksheet appears more professional (vs. green pen markings by man behind the curtain) and it almost creates the perception that "this is the way the computer prints out the numbers (not the man behind the curtain) and is shown to everyone"
It's my conception that the Customer doesn't care what they're paying for the car or how much you're giving them for their trade, only what the check amount is they'll have to write every month. Certainly Customers will object to the price and trade but why? Because they kinow if they get more for their trade, the PAYMENT will go down. -
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Permalink Reply by Michal Ann Benedict Enders on
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Anchient Car Dealer Blessing: May your competitiors eternally sniff sharpies and serve the four square with smilies.
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Permalink Reply by Richard Emmons on
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Well 4 square was 25 years of my life and we taught it for years. Red flag compliance has some issues with some of the word tracks. As in 1/3 required for preferred bank financing. I still believe in some parts of the process as in asking for a substantial cash investment and there are ligament word tracks on how to obtain preferred bank financing. Holding on the trade by saying wholesale value and starting with a high retail number, huge starting payments we must be careful with for CSI and customer retention. Higher grosses are found here but are referrals and repeat business?. So a good salesperson that can qualify a customer before the T.O. will determine where to go when penciling a deal. So 4 square or not... Depends on the customer.
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