How To Lose The Sale On The Lot…
Talk Trade Value – Lose The Sale 94% Of The Time
Talk Any Price Topic – Lose The Sale 96% Of The Time
“What’s my trade worth?” … “What would my payments run on this?”
Most customers will ask you both questions before they’ve even found a vehicle they’re ready to take home today. If you fall into this trap, you’ll risk losing the sale 94% of the time on trades, and 96% of the time on price.
Understand these facts!
1. 96% of the people who heard a price for their trade and who left the lot without buying, left because of the trade value on their vehicle, not because of the price on the vehicle they were buying. Ask any customer what they paid for their car 6 months after they bought it, and most can’t tell you. But ask most people what they got for their trade and they can still tell you 2 years later.
2. If you’re on the lot and talk about an ‘actual buying price’ (instead of just the sticker price) or the down payment, monthly payment or rates and rebates before you have a commitment to own the product, 96% will shop the price.
3. 71% of the people bought because they liked the salesperson they worked with. 71% of the people who didn’t buy, found a vehicle in inventory and didn’t buy because they didn’t like the salesperson, process or management.
“What’s my trade worth?” Correct response: I don’t know.
“What would payments run?” Correct response: That depends (then bypass and investigate wants & needs).
Don’t think you can respond with either of those? Bummer, because it’s real important you understand that no matter how long you’ve been selling cars, you do not know what their trade is worth (or what their payments, down payment or rate will be).
No, I’m serious – you don’t know the accurate answer to any of those questions. And every time you think you do and start educating your prospects about their trade value, how much down they’ll need or what their payments will run, you lose sales and income to a salesperson down the street.
A dealer asked 8 different wholesalers to give him a bid on what a vehicle was worth. Eight people, eight opinions. So learn how to say, “Gosh, I just don’t know, we’ll have my manager take a look at it as soon as he’s free,” and bypass with, “Speaking of your trade, are you looking for something pretty basic again or do you want something with more equipment this time?”
The average salesperson thinks they’re doing a great job in sales and that sharing all of this knowledge is what they need to do to sell more. Unfortunately, the facts prove just the opposite.
Of every 50 people you talk to, 78% are buyers (that’s 40). Average salespeople sell just 20% (that’s only 10 of the 50).
That means average salespeople lose 3 sales for every one they make. One more fact makes it even worse: 85% of the people who buy, specifically came on the lot to buy, not to look around. So here’s a tip: Instead of trying to be the resident financial and appraisal expert who is actually losing the sale 8 out of 10 times, just do your job.
Seriously, since talking price isn’t exactly working out for you, why not do the opposite and focus on becoming an expert at selling instead?
So what is your job? Easy: Greet the customer, build rapport, investigate for wants and needs (not price), sell yourself and the dealership, get them pumped about the vehicle and the value to them of owning it, then, “Let’s go wrap this up so you can start enjoying your new truck – can I get you coffee or something cold to drink while we take care of the paperwork?”
That’s it. No need to ask if they’re there to buy, just assume they are one of the 8 out of 10. Follow the selling process and you’ll write up 75% of your prospects, and 50-75% of those will deliver.
No need to appraise their trade, your manager will do that for you. They’ll probably even get a 2nd or 3rd opinion from a wholesaler or dealer across town if they need some extra money on it. No need to ask prospects to low-ball you with how little they want to spend each month, or how little they would like to put down – just assume they can buy the one that fits their needs.
If you ask about pricing, they’ll give you the lowest number they can imagine, then you’ll end up in a hum-haw and spend your time trying to grind out a deal with someone who isn’t sold on you, the dealership or that vehicle.
If you’re on JVTN®, take the new courses “How To Sell More Cars Every Month” (selling process) and the just released “Skills You Need To Sell A Car To Your Next Customer”. Stay off price, you will definitely sell more units at higher gross profits.
Sell more cars with Joe Verde’s latest book, “Earn Over $100,000 Selling Cars – Every Year.” Go to www.joeverde.com to get a free PDF or order a free soft cover book.