Well its been a long delay in the series but here is the next installation, Working the Deal...

I honestly hesitate to even include this in the series as often it will clash directly with the process that sales managers want to follow when desking deals.  However, the whole point of this series is to address those management teams that actually do hate internet sales and see it as a bottomless h*** of red ink.  If you do fall into a category that this rubs the wrong way, I encourage you to approach this with an open mind.

The point of selling cars is to make money, and for better or worse we're stuck with the sales manager-salesman-customer relationship at least for the foreseeable future.  For those that truly hate internet sales, this can be a major sticking point in building a successful internet department and team.  I've been able to work for all types of management, but for some reason the ones I've learned the most from as an internet salesperson were the ones that made my life the most difficult at the time.  The ones that would literally take the deal I've just handed them and throw it across the sales office in disgust saying "I'M NOT TAKING THAT DEAL!"

I've been called a "Giveaway artist", "Order-taker" and many other things that I can't print, but in the end, I picked up the deal, made the deal, and my gross profit per deal was always on par with the retail department and usually above average!

Generally the sales manager doesn't like the deal because they haven't controlled the deal.  That is after all, their job!  Now if you're blessed to be an internet sales manager who has the freedom to work your own deals start to finish, God bless you and enjoy your freedom!  If you're like most however, you still have to work the deal to a certain extent, and if you're not, you could be missing out on that gross internet sales-hating managers want to see!

How do we take a pre-quoted internet shopping prospect and work for profit and not just units?  All customers are slightly different.  Some want your "best price" before they come in.  Some want your best price, trade value, finance rate and extended service contract costs along with their total payment.  Some just want someone to be nice to them on the phone.  No matter the customer though, there's always an opportunity to make the deal profitable.

How can we make gross though?  Usually we have to at least offer a price to get a customer in nowadays.  Lets just say you gave them a rock-bottom price to get them in.  Did they ask for a trade value?  Give them numbers, just give them a RANGE.  "We cant give 100% accurate values without my used car manager inspecting the car in person, but in my experience I'd ESTIMATE about $X (mid-low auction value) up to ($X high trade value).  Most cars this is only a $2000-$3000 swing, so you didn't play hard-to-get, making the customer nervous, and you didn't lock yourself in, giving them a shopping number or removing your opportunity to pick up some profit.  When they come in, be obvious about honoring the price you quoted, then work the deal with the sales manager on the trade value.  This should give you a chance to try to pick up at least $500+ on the trade UA alone in most cases.  I did one of these yesterday on a   Truecar.com customer with a <$3500> front end profit (yay Southern California market).  Cash deal, but a trade involved.  I worked the deal the old-fashioned way on the trade, and ended up gaining $1800 on the front end!

To often we just assume its a bad deal, and we just take shortcuts to get them out the door and say, "Oh well, at least its a unit!"  We have to remove that mentality from our stores.

Now if I'd really gone for the jugular, I should have worked on switching this customer to a one-pay lease.  This was a wealthy client who only keeps cars for about two years before trading them in.  That would have gained me an additional $3000 in cash incentive from the manufacturer!  See why I said back in the beginning that we should NEVER put just some inexperienced salesperson who is computer-savy in the internet department?

More options for salespeople to maximize profit while working internet leads.

• Trade UA
• Switch from Buy to Lease
• Switch from Cash to finance
• Work for back-end profit
• How about switch cars ENTIRELY!

There is always an avenue to try to maximize profit, if not at a minimum minimize losses.  Regardless, with an experienced internet sales professional, you don't have to hate internet sales any more!  The trick is knowing what avenue(s) you have with each individual opportunity, and not assuming that the deal doesn't have the chance to be profitable.  Take what you have, and maximize it with the opportunities each client situation offers you.

One thing I do need to emphasize.  It is best to not force an issue or try to create one of these avenues where there is none.  By this I mean, make it a natural move.  If the customers car buying fits a situation that's different than what they're pursuing, bring it up and mention it as an alternative.  Don't take a lease customer who only keeps cars for 2-3 years and try to ask them to finance instead unless they present that as an option.  Take only what the situation offers or you risk losing all opportunity.  People shop online so they can feel more comfortable when they're at the dealer.  Its all about keeping their guard down.  Most people will dig in and remove all further chances of profit maximization if you cause them to put their guard up.

Again, experience is what makes the difference.  Having a salesperson that knows how to explain leasing to the finance-only buyer, or someone that can easily explain why you cant give full Kelley Blue Book value on a trade is what makes the difference.

With the right salesperson, and the right attitude towards each individual deal from both the salesman and manager; your internet department can rebound from a downward spiral of red ink and stress to a major profit center for your dealer!

Please leave some thoughts or comments below.  I'd love to hear your take on this.

One more post coming, "Whats the Point?"