When every deal is a mini…
Ask Joe: “I can’t make $$$ – every deal is a mini!”
If you’re getting lots of minis, it’s either because you’re only selling small units with zip for gross to begin with, or because you’re holding a price dropping auction on each vehicle you show people.
Some dealers run big price ads, put a gorilla on the roof, put up discount banners everywhere, paint “Pile ‘em Deep – Sell ‘em Cheap” on the showroom windows, and hang a red tag special on the rearview mirror of every vehicle to make sure people know “we are cheap”.
Heavy price advertising draws a crowd and it’s tougher if you’re next door to that dealer – but the good news is, if they’re talking to you right now – the most important thing for you to do is to switch from price and focus on their wants and needs and building value. So when you hear, “What’s your best price?”, just rephrase the objection to budget…
sounds like you’re like me and everyone else,
it sounds like you’re on a budget, huh?” (Yes.)
Now change the subject: “I definitely understand how important budgets are, so let’s find that perfect car and then we’ll figure out a way to make it fit your budget – so who’s the lucky one, who’s it for this time, you or Bob?” (Me.)
There are two easy ways to sell more and hold more gross:
1. Stop selling price and sell the vehicle.
2. Build your repeat and referral business, and work your service drive (correctly). R&Rs close at 75% and pay 40% higher gross, and when you bring a service customer up front to look at a vehicle, they haven’t shopped price.
Of course everybody wants a good deal, so remember…
“A good deal is a feeling, not a number.”