What is the Best process to Sell From Instock ?
dE member's I need advise...
What are some of the best ways to get your salespeople to sell instock units?
We are to fast to say we can go get what you want. How do you change the culture to sell from instock?
Replies to This Discussion
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Permalink Reply by Chris Erickson on
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Sounds too simple, but I would start with making sure the desk managers are presenting numbers on in stock units 100% of the time. ex. "Mr. Mrs customer it looks like we have found a vehicle equipped the way you'd like to own it, but I also had my manager give me numbers on a vehicle equipped similarily that we have here. Because there are less costs involved with a vehicle we have, we are able to save you some additional money. Here is how the 2 vehicles compare."
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Permalink Reply by Daniel Tegeder on
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The customer usually wants the locate at the price of the instock unit and sometimes back fires on you.
Thanks for the coments Chris that is a very simple step
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Permalink Reply by Stu Zalud on
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Dan:
I might consider some type of scaled commission and offer a flat bonus from stock, or increasse the percentage of commission and use stock units as a qualifier and make it retro if achieved. You could pool overage units and offer a flat fee bonus on those group of vehicles and change it weekly. Make this flat bonus in addition to any gross. There were times on identified units when carrying costs skyrocketed, e paid all the gross in commission to move a real old improperly configured uint at times. It was rare, but stale units do not get better. There is a reason they have not moved. I would also put the oldest couple of cars on your showroom floor so everyone walks by them.
Try different approaches or combine a few. Do you add the cost of the DT to your vehicle cost before commissions are calculated? In a lot of trade situations, it gets worse because the trading dealer wants you to purchaes his vehicle and he keeps the holdback. Now you have the expense of two cars or a carrier and no added gross, but you are gaining a customer so you need to weigh each deal. Is this a repeat buyer, is it someone who will create word of mouth? Do I need it for the month? All these things play a role in the decision.
If your sales team has an objective that when reached adds to the commission, make so many out of stock the qualifier.
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Permalink Reply by James Hatton on
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Is offering to give the customer what they want all that bad? Is the problem locates or that the proper inventory and options are not what your customer wants? If locates are frequent someone may be out of touch with what your dealership's customers want. Food for thought.
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great points James thanks
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Permalink Reply by Bobby Compton on
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Excellent question, Daniel.
As much emphasis that is placed on the culture of a team, there should be equal if not more emphasis placed on the process provided for the team. Process set's the stage for the team, as well as can change the culture of the team without most importantly,- replacing the team!
Obviously in today's day and age with online and comparison shopping abilities, some dealers have an advantage over others based on demographics, volume of sales and allocation that ultimately determines available vehicle selection. With this, let's tackle your question for the dealer who is at the most disadvantaged on all points.
I view new vehicle inventory similar to used vehicle inventory in respect to the process of selling, they both age and in many cases cost money to floor, sitting around long enough inventory will eventually be suspect lot damage and high miles from demos etc; essentially the book value is decreasing the longer any portion of inventory is sitting on the lot.
I recommend firstly to start with establishing a sales process, to implement a bucket system per-sey that identifies the age of the unit, and to do this for both new and used inventory. Secondly, to establish a merchandising system on the lot as well as online, this will ultimately tie into your all around marketing efforts as well as pay plan opportunities that ultimately drive the motivation for your sales team to sell what is in stock.
In many cases specific to new vehicle merchandising, a dealer may have two of the exact same vehicles with same package and equipment in stock; for example, one of the two vehicles with same equipment may have been in stock for 6 months while the other is a fresh unit delivered from the manufacture only a week ago. The method is to identify the older unit in stock, merchandise and market the older unit to be sold first rather than sell the fresh unit that was delivered only a week ago.
When establishing this process, I've always been an advocate for spiff in hand now; to place a motivating spiff for both sales consultant and sales managers, even if it's a $50.00 spiff, it keeps the eyes on the ball, the team in the game and all concerted efforts to sell the older units first, and to ultimately sell what is in stock.
This is not a cure all as well as there is always more to drill down on; but without question is a start in the right direction of establishing a new vehicle sales process, motivating your culture and ultimately creating a team winning mentality!
If you have any questions I would be more than happy to continue this drill down with you right here on dealerELITE where the best and the brightest in the automotive industry collaborate!~
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Can you give an example of process or word track to use when customer wants what we do not have?
thanks Bobby
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Daniel,
Before moving forward into any additional aspect of collaboration that I could share with you at this point based on the other outstanding insight shared by all others in this thread; I first need to ask you if you fully understand and comprehend what I have shared with you and if you are in fact currently doing anything along these lines specific to process or what aspect of what I've shared with you are you not doing?
Another question I have for you; what are you currently doing yourself specific to process and word tracks to sell what you have in stock? I would be glad to expound on all questions accordingly!~
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i am new to dealership and they have no processes that the biggest challenge. That why I said culture
They are to quick to offer locate \
I was asking because I NEED TO CREATE THE PROCESS and change the culture
I am motivated to stop paying a dealer trade driver to go get the cars
The first process was to make the salesman go get the car on a locate
But I need to help the guys with word tracks and I was hoping to get some ideas
Ideas Welcome
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Sounds like you're sitting in perfect position to shine and make a positive difference!
Process establishes and promotes expectation, accountability and motivation. Process is the ultimate safety net for average individuals to create extraordinary results.
I have shared with you a very proven start to a solid process that addresses much of the opportunity you're facing. I would never recommend a band aid for a bruise, to stop the bleeding requires addressing the core, the root cause first. Before moving into any kind of scripting, I cannot emphasize enough how imperative it is to establish process first and foremost.
Do you comprehend the process I have shared with you thus far from my original response? If so, please clarify and if not please ask what aspect you not understand. I'm game to walk you through the entire process right here on dE to assist you in creating team winning success.
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We have all the units marked that are aged or needs to be sold first YES
They do focus on aged because the commish increases on aged units so it benefits them
The problem though is that they do not try to sell whats here sometime. I think we have cut down some on locates but would like to know some more word tracks
The process is coming along
Thanks
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I'm impressed, it sounds like the company you work for has a good pulse on things; it's an outstanding process to identify, mark, incentivise and merchandise aging new and used vehicle inventory.
I would recommend rather than increasing commission, pay cash spiff that day; all to often part of the pay plan goes out of site out of mind. The old saying is a sales person rather be paid $100.00 spiff now than to wait two weeks for a $200.00 commission; interestingly enough this holds true as instant gratification is a great way to add fuel to the fire of sales motivation!~
With this type of process established, I'm not insinuating by any means to promote being pushy or self serving, rather to be conscientious and motivational in selling what's in stock as well as to incentivise selling old age inventory.
Dealer trades are very much a part of the process for many if not most dealers these days, your inventory is the lifeline to other dealers as well as is theirs to yours. This process needs to be addressed as well, to ensure that dedicated and motivated individuals are the ones handling dealer trades to keep in good standing with the dealers you trade with as well as when it is they who are calling you!
If after you've done everything you can do to sell what's in stock, and all that is left to do is a dealer trade, then it's imperative to have a process set up that doesn't slow or stop the rest of the sales process, or to distract the Sales Manager from making other deals.
Now, to get down to your request of scripts; I believe firstly your core philosophy of selling needs to be established. Serving and selling is what we do for people, not what we do to people. All to often clients ask questions or raise objections out of fear, unknowing or confusion; as well as a solidified sureness of knowing exactly what they want and can get.
If dealing with a client on the showroom floor, I'm an advocate of having giveaway prizes, a real deal selling environment that promotes offers of test drives. The absolute best way to sell what you have in stock is to show them what you have without telling them what you don't have. All to often, the process is lacking without incentive, or most importantly the excitement inside ones showroom floor that gives the perception that is the place to buy ultimately creating a buying frenzy. This is much deeper than any kind of script I could ever offer you, this is selling the heck out of the sizzle, emotion creates sales - logic kills deals.
When handling specific questions over the phone, I recommend taking charge of the conversation with kindness, positiveness, and to answer their questions with a flexible set of questions of your own.
SAMPLE Customer: Do you have a green Toyota Camry SE V6 in stock?
Response: That's a wonderful package, you have great taste. We have a huge selection of vehicles, we don't lose business over selection I can assure you of that. Would you be trading in a vehicle while I check on that? YES of NO - Wonderful, we have a huge sale going on right now, you're calling at the perfect time. By the way, have you been shopping around long, if so where? This will enable you to better know what you're up against. One of the absolute hottest and best question I ask, will you be financing, the reason I ask this is more people have less than perfect credit these days due to the economy of past, as to be the stand out of the crowd dealer who can actually approve them will gain more clients who are having troubles or concerns with financing than meets the eye.
I can go on and on, but the key is to direct the sale, even if it does turn into an order, ultimately to instill salesmanship in your people but more so to instill a SERVE2SELL philosophy where everyone wins! When a client can feel that you have their best interest at heart, this ultimately create the absolute most important factor in selling, it builds TRUST.
If you have a particular objection you would like addressed, or a scenario you're facing, I would be more than happy to share with you my experience on how I would or most likely have dealt with them.
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