Old-School Pitching Makes for Negative Buying Experiences

Car Sales: Old-School Pitching Makes for Negative Buying Experiences

Why is it after all these years, the majority of the car buying consumers cringe at the thought of dealing with a car salesperson?  Being in sales for 20 years myself, and now at Glance Networks, I have seen companies evolve their sales process away from the hard-sell pitch and toward a value-add conversation.  But not the car dealers.  Why not?  My own emotional response:  It is a game to see how many consumers they can take advantage of... 

And most Americans agree...in a Gallup poll taken last November, 51% of Americans believe car dealers to have "very low honesty and ethical standards".

My most recent experience was a few months ago.   I went into the process fully armed with months of research (reliability, safety, features, and price). After all my research, I selected a Honda CRV.  I drove to the dealership and expected to test drive and get a price all within an hours' worth of my time. 

I should have known better.  

I was there for FIVE hours!  (Did I mention I was 8 1/2 months pregnant?)  My frustration was boiling over as they determined I would be better off purchasing a used 07' model for the same price as an 09'.  It  was amazing to watch the tag team dance performed by the sales person and the the sales manager,  driving the point to me that this was the best deal I'd ever see, and I needed to agree NOW, as it wouldn't be offered tomorrow.

Did they know I was pregnant, not stupid?  Of course I walked away from the dealership with a very bad taste in my mouth, and NO sale. Two questions crossed my mind:  

  1. What purpose does a car salesperson serve, if they actually have no power? They seem to always have to get their sales manager involved, as he / she makes all the $$ decisions; and
  2. What was I thinking....wasting 5 hours of my Sunday afternoon at a car dealership? 

I did finally purchase a vehicle, butSales pitch, sales process, car dealers not without a fight. Instead of wasting my time driving from dealer to dealer, I found a way to take matters into my own hands. I went to Vehix.com for a price quote, and completed a bid request, which was sent to local dealers of my choice. They all contacted me via email and I was able to price-haggle with them by email, by stating another dealers' offer of a lower price.

I don't intend to purchase another new vehicle for many years.  When I do, I will research, test drive, but then opt to do the price haggle dance via the Internet again. Lesson learned: I don't really need a salesperson for the close anymore.

What are your thoughts? Why does the car buying process seem to stay "old school" at the dealerships? Why haven't we evolved a less painful car sales process? Anyone out there have different experiences at dearlerships?

Views: 59

Replies to This Discussion

Permalink Reply by Jim Radogna on November 6, 2010 at 2:06pm
Good post Manny. Car salespeople hate "internet shoppers" yet they consistently push them in that direction...
Permalink Reply by Rachael Schulz Dunbar on November 6, 2010 at 2:20pm
As an Internet/BDC manager I first take the time to inform my customers on how thier purchase will benifit me, my dealer, and thierselves. I have the benifit of being able to inform them that I am a salaried employee who can be completely honest with them at all turns in the process, a kind of advocate for the common consumer. I explain to them the whole process from thier prospective and "school" them in a way that they can use with us or any other dealership. No matter how much research that internet customer has done so far its obvious that at some point they are going to find out how much the car they want actually costs the dealer so why not treat them with respect from the start and let them decide what our services are worth. Then, when they step foot into my "old school" dealership they are confident and armed and so they leave with a car. Because, I have already taken the time to teach them how tobuy thier dream car and get a trade offer at a reasonable cost for each party. When my customers walk into the showroom they are buyers from the start. They are confident and trusting. They know thier best deal and exactly how to push for it. I may not always agree with my "old school" dealers practices......but I certainly have earned them future retention with my own practices.
My clients go thru the trouble to post reviews of me online even when they don't buy from us. They call me for advise when family thousands of miles away are shopping, They call me from competitors showrooms. They trust my dealer because they trust me. No matter who comes and goes here or what changes at the desk....these people will continue to buy from us.
You would be amazed at how many people will allow you profit in return for knowledge!
Just another reason to hire the right salaried employee. Its the best sales pitch ever made!
Permalink Reply by Jim Radogna on November 6, 2010 at 3:17pm
Well said Rachel!

Rachael Schulz Dunbar said:
As an Internet/BDC manager I first take the time to inform my customers on how thier purchase will benifit me, my dealer, and thierselves. I have the benifit of being able to inform them that I am a salaried employee who can be completely honest with them at all turns in the process, a kind of advocate for the common consumer. I explain to them the whole process from thier prospective and "school" them in a way that they can use with us or any other dealership. No matter how much research that internet customer has done so far its obvious that at some point they are going to find out how much the car they want actually costs the dealer so why not treat them with respect from the start and let them decide what our services are worth. Then, when they step foot into my "old school" dealership they are confident and armed and so they leave with a car. Because, I have already taken the time to teach them how tobuy thier dream car and get a trade offer at a reasonable cost for each party. When my customers walk into the showroom they are buyers from the start. They are confident and trusting. They know thier best deal and exactly how to push for it. I may not always agree with my "old school" dealers practices......but I certainly have earned them future retention with my own practices.
My clients go thru the trouble to post reviews of me online even when they don't buy from us. They call me for advise when family thousands of miles away are shopping, They call me from competitors showrooms. They trust my dealer because they trust me. No matter who comes and goes here or what changes at the desk....these people will continue to buy from us.
You would be amazed at how many people will allow you profit in return for knowledge!
Just another reason to hire the right salaried employee. Its the best sales pitch ever made!
Permalink Reply by Rachael Schulz Dunbar on November 6, 2010 at 4:59pm
Thank you Jim! Quite a compliment coming from an Ethics expert :)
Of course You and I both know that "salary" is not common in our industry nor does it always work. You have to KNOW you are hiring an ethical and loyal employee and in return treat them with more respect than just a nameless employee number for it to work.
How do you suggest a dealer should test to find out if that new employee will "fit the bill"?



Jim Radogna said:
Well said Rachel!

Rachael Schulz Dunbar said:
As an Internet/BDC manager I first take the time to inform my customers on how thier purchase will benifit me, my dealer, and thierselves. I have the benifit of being able to inform them that I am a salaried employee who can be completely honest with them at all turns in the process, a kind of advocate for the common consumer. I explain to them the whole process from thier prospective and "school" them in a way that they can use with us or any other dealership. No matter how much research that internet customer has done so far its obvious that at some point they are going to find out how much the car they want actually costs the dealer so why not treat them with respect from the start and let them decide what our services are worth. Then, when they step foot into my "old school" dealership they are confident and armed and so they leave with a car. Because, I have already taken the time to teach them how tobuy thier dream car and get a trade offer at a reasonable cost for each party. When my customers walk into the showroom they are buyers from the start. They are confident and trusting. They know thier best deal and exactly how to push for it. I may not always agree with my "old school" dealers practices......but I certainly have earned them future retention with my own practices.
My clients go thru the trouble to post reviews of me online even when they don't buy from us. They call me for advise when family thousands of miles away are shopping, They call me from competitors showrooms. They trust my dealer because they trust me. No matter who comes and goes here or what changes at the desk....these people will continue to buy from us.
You would be amazed at how many people will allow you profit in return for knowledge!
Just another reason to hire the right salaried employee. Its the best sales pitch ever made!
Permalink Reply by MANNY LUNA on November 6, 2010 at 6:01pm
Thank you!

Jim Radogna said:
Good post Manny. Car salespeople hate "internet shoppers" yet they consistently push them in that direction...
Permalink Reply by Fran Taylor on November 8, 2010 at 6:23pm
As a manager I will ask for all the money every time. Profit is not a dirty word to me. The sales people ususlly get paid on the gross profit so they want to make a profit. It is the sales persons job to get much as they can. If the customer doesn't want to pay thay much the sales person should take an offer to the manager with a cash commitment. It's not where you start it's where you end up that makes customers happy.
Yoy can start at invoice and customers won't be happy. They always want to haggle some. That's the way most people do business.
It is most certain the dealership you were at needs some help. No one should be abused and have to wait that long. If you were in a one price store and they don't budge would you be angry? It all boils down to working with professional people who do the right things.
Sorry you had a bad experience but I guarantee there are good dealerships and sales people that would never treat you thay way. Best of luck.
Permalink Reply by MANNY LUNA on November 8, 2010 at 8:57pm
Thank you Fran for your great wisdom!!
Your a one of a kind straight up Trainer of all Techniques!





Fran Taylor said:
As a manager I will ask for all the money every time. Profit is not a dirty word to me. The sales people ususlly get paid on the gross profit so they want to make a profit. It is the sales persons job to get much as they can. If the customer doesn't want to pay thay much the sales person should take an offer to the manager with a cash commitment. It's not where you start it's where you end up that makes customers happy.
Yoy can start at invoice and customers won't be happy. They always want to haggle some. That's the way most people do business.
It is most certain the dealership you were at needs some help. No one should be abused and have to wait that long. If you were in a one price store and they don't budge would you be angry? It all boils down to working with professional people who do the right things.
Sorry you had a bad experience but I guarantee there are good dealerships and sales people that would never treat you thay way. Best of luck.
Permalink Reply by Steve Richards on November 11, 2010 at 8:08pm
The car buying process stays "old school" at most stores because of the business model. The automobile is the most popular product in the history of mankind, by law you can only purchase a new one from a new car franchise and there are fewer of those these days. Competition is actually decreasing; those that own stores are making more money. I am at this moment working the sales desk at the #1 selling Acura store in the USA, 7 years running. Five years ago this store made $6.6M, two-thirds of the profit coming from the variable side. This year the store will make $6.8M, less than one-quarter coming from the variable side. Who suffers? Certainly not "upper management;" but the sales people are making much less than they were 5 years ago; front gross profit is evaporating.

My job is two introduce, facilitate, and inspire the change necessary to develop a modern and sustainable sales process; a sales process where the sales person isn’t perceived as a buffoon because of the stupid sales tactics taught by many “industry experts.” During October, November, December, and January we are teaching sales people and managers alike to hold INTELLIGENT conversations with the prospective customers, especially during the opening and closing sequences of the sales process. INTELLIGENT is defined as conversation that helps the prospect “close” themselves. INTELLIGENT conversation, especially when talking about the money required to complete the transaction (price, trade, payments, finance terms, etc.) is conversation that is logical, makes use of mathematics, third-party proof statements (evidence), and is immersed in a gel of integrity. INTELLIGENT conversation is based on justifications, not “old-school sales rhetoric.”

If today's consumer is more informed and discerning than ever doesn't it make sense to raise the sales team's level of conversational engagement? Will it work? I don’t know, but I admire the dealership’s upper management team for making the effort. As one who sells sustainable sales process change I can tell you the “hot” prospects are far and few between in the retail automotive business. I’ve tried to sell the largest automotive groups on the planet; they claim to embrace a “better way,” but more often than not they stick to “their way” – the way it’s always been done. Or maybe I just suck at selling...
Permalink Reply by MANNY LUNA on November 11, 2010 at 9:19pm
Super Great job Steve!
Your a great car man!






Steve Richards said:
The car buying process stays "old school" at most stores because of the business model. The automobile is the most popular product in the history of mankind, by law you can only purchase a new one from a new car franchise and there are fewer of those these days. Competition is actually decreasing; those that own stores are making more money. I am at this moment working the sales desk at the #1 selling Acura store in the USA, 7 years running. Five years ago this store made $6.6M, two-thirds of the profit coming from the variable side. This year the store will make $6.8M, less than one-quarter coming from the variable side. Who suffers? Certainly not "upper management;" but the sales people are making much less than they were 5 years ago; front gross profit is evaporating.

My job is two introduce, facilitate, and inspire the change necessary to develop a modern and sustainable sales process; a sales process where the sales person isn’t perceived as a buffoon because of the stupid sales tactics taught by many “industry experts.” During October, November, December, and January we are teaching sales people and managers alike to hold INTELLIGENT conversations with the prospective customers, especially during the opening and closing sequences of the sales process. INTELLIGENT is defined as conversation that helps the prospect “close” themselves. INTELLIGENT conversation, especially when talking about the money required to complete the transaction (price, trade, payments, finance terms, etc.) is conversation that is logical, makes use of mathematics, third-party proof statements (evidence), and is immersed in a gel of integrity. INTELLIGENT conversation is based on justifications, not “old-school sales rhetoric.”

If today's consumer is more informed and discerning than ever doesn't it make sense to raise the sales team's level of conversational engagement? Will it work? I don’t know, but I admire the dealership’s upper management team for making the effort. As one who sells sustainable sales process change I can tell you the “hot” prospects are far and few between in the retail automotive business. I’ve tried to sell the largest automotive groups on the planet; they claim to embrace a “better way,” but more often than not they stick to “their way” – the way it’s always been done. Or maybe I just suck at selling...

RSS

© 2024   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service