WHERE’S THE GROSS?

How do I hold more gross? 

Gross is only a dirty word if you don’t have it. 

Tip's from Synergistic Selling.
Avoid the 3 top excuses for being a low grosser.  
Especially avoid the 3 worst gross killing closes

Learn the power 5 techniques to recapture lost gross NOW!

Where have the grosses gone? Have we forgotten the process of holding gross amid the many processes we have in place? Add only $300 per copy to a dealership selling 100 units per month, and you have $360,000.00 per year.
Gross, like anything beautiful, will leave you if you don’t care for it. 
One thing is certain, if you don't believe in gross, you will never see it. If you don't believe you can hold more gross by all means, stop reading and continue on your merry way with your head in the sand.

LET ME SHARE WITH YOU THIS FACT-
FROM COAST TO COAST, IN EVERY MARKET IN AMERICA, DEALERS PRACTICING BASIC GROSS HOLDING TECHNIQUES HAVE, DO, AND WILL CONTINUE TO OUT PERFORM DEALERS WHO DON'T.

The primary excuses are the information age and tough competition in our unique market. We know the biggest gross killers are not the competition or the market, they are SALES PEOPLE AND SALES MANAGERS suffering from:

1) A bad Attitude 
Falsely believing good grosses are not attainable in your market. In every market the dealership down the street sells cars for triple net losers. Its been that way since Scooby Doo was a puppy and is no excuse not to properly work your customers. Not even attempting to hold gross because Edmunds, Truecar, the web, the competition, the small mark up margin, etc. is losing before the game begins.

2) A lack of any structured negotiation process.

A process designed to hold gross is a sure fire way to low grosses. He who fails to plan, plans to fail. It has been this way since Hitler was a corporal.

3) Being oblivious to supply and demand.

This is like trading $20 dollar bills for $10s. Fresh trades, back of book trades, rare packages, rare or hot models, like invoice units, and last years big rebate models are NOT to be cheap sold. This has been a rule since Moby Dick was a minnow.

The skill of maximizing profit on deals is becoming a lost art, replaced by excuses, and incompetence.
Far too many sales managers are not familiar with basic gross holding techniques. Passing on their "knowledge" to the sales associates is as handy as sewing a back pocket on a shirt. 
The crux of the issue is give away artist with jobs as managers are teaching sales associates to be as grossly incompetent as them.

The lack of training on the art of negotiation is shockingly absent in most dealerships today.
I see these three gross killing closes, repeatedly and fearfully pitched by low gross artist:

1) “I won't build urgency or value but I will keep lowering the price and offering more for your trade until you say yes.”

2) “I won't start at full MSRP and work down but I will dig into holdback, and put too much in your trade if you will please take my deal.”

3) “I won't ask for the order then shut up, but I will strip out all the holdback, over promise on interest rate, and cheap sell a warranty, and keep yapping, if you will take the deal."

As if dropping their pants on the front end isn't good enough for them, they make an art of killing any hope of back end. Then they actually high five, chest bump, or brag, as if they have “sold” a car. It's a shame.
I have witnessed the lack of negotiation techniques first hand, I don’t know if I sympathize more with the sales associate, customer, or dealership.
Compounding matters are clueless sales managers actually getting involved and fouling up a deal worse than a green pea sales associate. They often seem to go straight to bad close #3.
Is it any wonder customers complain about a lack of professionalism or feel good in the negotiation process?

Getting back to the basics is always the answer to every question regarding missed sales or gross.

These techniques will get your gross back where it belongs, on your check or your statement!

1- You must start from the top when negotiating EVERYTIME.
Asking for full MSRP is the only acceptable way to start a deal. Not doing so makes a mockery of the MSRP price and cost you credibility. Remember you can always lower the price, but never raise it back up. 
Full MSRP typically means about a 5 % markup to the dealer. When put in perspective versus any other retailer 5% is a laughable number. MarketWatch.com shows Wal Mart with an average 32% mark up and Target for 46%.
Even the Dollar General Store is reportedly near triple the mark up of the average new car. Jewelry, furniture, appliances, and mall retailers still show staggering mark up percentages often well into the triple digits. In a six month policy, customers can pay twice as much profit to their insurance agent as their car dealer, even after paying full MSRP!
You will never get what you do not ask for, and even in todays information age 10% to 20% of customers will pay MSRP when asked properly. Are you getting your fair share? 

2) The ABC's of teaching and coaching very basic negotiation skills. 
A- Specific training on presenting the initial offer. Handling the customer’s reaction. Knowing when to speak, when not to speak, and what to say when you do speak, is paramount in holding gross
B- The fundamental belief of earning the right to ask for the gross. Believing we are not ripping anyone off by asking for our small mark up margin because we deserve fair profit.
C- How to get an all important commitment. This little, yet often skipped gem, is a money maker, yet is rarely taught.
There is so much more to it, but these basics will raise your grosses $300 per copy, and are lost on far too many managers and sales associates.

3) A practiced, drilled and rehearsed format for negotiating.
Having a format dedicated to the negotiation process is critical. You cannot arrive at a destination without a plan. Based on performance, the four square is my personal favorite. I am aware the four square is old. Isn’t the gun old as well? Dating back to the in the 900s, yet still carried by modern military and law enforcement as the primary weapon for protection today.
You can steer away from hand writing it and print it right out of most CRM tools. Negotiating on a 4 square method raises closing percentage, front end gross, and back end gross. It is also the most productive negotiation strategy ever invented. Additionally, it provides the customer with the “feel good” of winning.
Even if you don’t use 4 square, practice, drill, and rehearse SOME method. ANY practiced method gives your sales associates CONFIDENCE. Losing fear is adding gross.

4) Ask for and work for down payment on every deal.
No deal EVER starts off with out asking for money down. Cash is king and is the common denominator in most high grossing deals. When our initial offer is zero down how can we negotiate with the down payment? Practice negotiating the down payment.
5) Internet pricing strategies
How can we hold gross if we have poor web pricing strategies?
Price leaders are designed to drive traffic. However, pricing every unit into holdback is definitely a gross killer. Get in the game and get the leads in without spilling your gross via the web. There are many strategies for driving traffic while holding gross.
Making a fair amount of profit starts with the belief you deserve a fair profit. An alarming amount of dealers today are beaten down mentally into thinking the dealer down the street, their unique market, true car, edmonds, the web, the manufacturer THE WHOLE WORLD is conspiring to force low grosses on them.
Simply not true, when asked -"How often do you train on gross holding techniques"? The answer is always the same. NEVER. Followed by- "Our guys are good, they get all the gross there is to get, with these educated customers and our stiff competition"-BULL CRAP!!! Just a losers limp.

Give my 5 tips a try. You will be surprised how easy gross is to make when you PRACTICE GROSS HOLDING and EARN THE RIGHT TO ASK FOR IT, ASK FOR IT EVERY TIME and do so in a professional manner. Besides what have you got to lose? If your grosses are low now you have NOTHING to lose.

Good luck and good selling,

Roger Williams
"The Automotivecoach"
Author of Synergistic Selling 
Corporate Sales Manager
Fletcher Auto Group