How Important Is Price?
Ask Joe: “Should we focus on what people want & need a vehicle for or on what they have to pay?”
Of course, in the car business, price comes up with every customer – it has to because they have to pay for the vehicle.
When it’s handled correctly though, price is actually one of the easiest questions, concerns, or objections you have to deal with to make a sale.
Most of us weren’t taught to deal with price though, so we spend our career selling price instead of the product.
Explaining how price fits into the big picture and how to deal with it is tough in here since it takes 16 chapters in our “PRICE” course on JVTN®.
To deal with price in the different situations you run into, you really have to understand price, so you don’t fear it. Once you understand price, and how customers determine their pricing, and when you really understand the difference between price questions, price concerns and price objections, it’s easier to deal with.
Why? Because 99% of the people don’t buy ‘price’. They buy the value of the product and the value of the features to them. When you think about it, it’s really simple…
When the price is too high, it’s because the value is too low.
Here’s the problem with value…
Value isn’t something you can see or touch. Value is a feeling you have to create by finding and focusing on each different customer’s hot buttons.
Example…Hand rubbed, hand stitched leather isn’t more valuable than a seat covered in a cheap cloth unless the customer feels that leather is more valuable to them than cloth.
It’s the person’s perception of the difference in how it looks, feels and performs to them that adds the value to them of paying more for it.
People don’t buy vehicles or features just because you like them. For them to pay more, the vehicle and features have to be more valuable to them. If you don’t establish that value, your deals will definitely default to price.
If they say, “I want leather, the cold weather package, and seating for 7,” you need to find out why those things are important to them so you can target those in your demo and presentation.
When you don’t know the ‘why’though and just give them a generic presentation and point to the internet special pricing, that’s where your deals can go south.
For those times when customers bring everything back to price, you have to learn to convert price objections into budget objections during your write up.
You’re probably on JVTN® so take the ‘Price’ sales training course or get to our sales workshop. Spend a few weeks developing your price skills and it will be a non-issue the rest of your career. People do want a ‘good deal’, so always remember…
A good deal is a feeling, not a number!
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