I am calling you to get the customer to commit, or guide me with this deal. My customer has bought 3 SUVs’ here, but will not commit. He is not satisfied with this last vehicle. He explained to me it cost him 5500, in repairs from the 80,000 mile to the present which is 130,000 miles. I know he is going to buy a seven passenger vehicle. He loved our seven passenger, but says he has reservations, about the product. He also has been an owner of our product for 19 years. He explained to me, the first SUV he kept for 8 years and loved it. The second SUV, he kept for 7 years and loved that vehicle very much. My customer also said, both vehicles combined didn't cost him 4500 in repairs, for total ownership. What should I do?

 

First of all, congratulations, you have a lot of great information, you did a great job. Did you give the customer numbers? Yes we did. Excuse yourself from the customer, tell him you have a great idea, that you know will work for him. Just give me a few minutes. I want you to get the sales manager, f and I manager and yourself, in the same room. How much money are we working with? The trade is placed, we are working with 1900 total profit. This is what I would do, go to the customer, all of you, f AND I, TOO. Introduce yourselves, explain what you do for the customers, in your store. Let him know, you truly understand his concerns, about the repairs. How much is a 5 year, 100,000 miles warranty? Do you have a warranty that is longer in time and mileage? The 5yr./100,000 with 0 deductible is 2400 dollars. The 7 yr./120,000 is 2750 with 0 deductible. Offer the 5 year deal to the customer. This would be my approach. Mr. customer, you have been a long standing customer of our product, we have a great solution. We will be willing to write the deal, so you can take delivery immediately. We are willing to put a 2400 dollar, new car warranty, bumper to bumper, 0 deductible, for only 1200 dollars. You will now drive worry free for the first 100,000 miles, Now that's a deal. You have accomplished two concerns, worry free driving, and a 1200 dollar savings. Show the complete coverage, of the warranty. Address any other concerns. Have the finance manager go over everything, about the warranty. Total team effort, soft approach, wins. When the customer commits, f and I already has a positive rapport. Now, the 7yr./120,000 will be sold, along with other products. Why? The customer always justifies his spending, by spending more. RESULT. customer did the deal, dealership gave up 4 oil changes. Customer took the 7yr./12000 mile warranty, also bought simonize. There was no deal at 1900 profit. The deal was made when everyone showed concern for the customer’s repairs. Great job. Glad I could be helpful.

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Comment by Tony Provost on June 10, 2011 at 8:05am
John you are right on with your comments. Thanks for your input.
Comment by John Fuhrman on June 10, 2011 at 7:44am
Excellent point.  Too many give up when they are told what the customer WON'T do.  Our job is to use all the tools (people) at our disposal to determine what the customer WILL do.  That's where the deal is.  While the profit may be less than the fantasy deal they thought they had, now there is a referral bragging about how well you took care of him AFTER a bad taste, and you should get some referrals to make up for any lost gross.

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