Poll Results Released By Joe Verde
Auto Dealer Salespeople Consider Price Most Troubling Part of Sales
Negotiation According to Joe Verde Sales & Management Training Poll
Joe Verde Sales & Management Training, Inc., (JVSMT) today announced that according to a recent poll of auto dealer salespeople, price is perceived to be the most troubling part of the sales negotiation process.
An informal poll posted on JoeVerde.com during the first quarter of 2013 asked; “Which part of the negotiation gives you the most trouble?” Following are the results:
Price: 43.58 %
Trade Value: 30.73 %
Monthly Payments: 15.08 %
Down Payment: 10.61`%
“Old habits die hard. Desking and negotiating are almost always about price, but price is #16 on your customer’s list of buying motives,” said Joe Verde, president of Joe Verde Sales & Management Training, Inc. “Sure it’s important, but first comes things like vehicle type, seating for 6, rear entertainment system, AWD, back up cameras, 22” wheels and a ton of other features. Same in the office, price is what almost every manager focuses on when they’re desking the deal, but in the end, over 90% are OK’d or rejected based on the terms (down and payment), not the price. It’s important to learn how to rephrase price to budget in the negotiation and how to refocus price and trade back to down and payments.”
While salespeople may consider price to be the major barrier to the sale, the annual J.D. Power and Associates Initial Quality StudySM findings agree with Verde. Consumers are not as concerned with getting a great deal on a new vehicle as the auto industry may believe. In the study, new-vehicle owners are asked to cite the reasons they chose the particular make and model of vehicle they purchased and are able to provide multiple reasons for their selection. For three consecutive years, reliability and durability are the most common reasons for selecting a particular make and model. And not one of the top ten reasons pertains to such economic considerations as low price, low payment, financing, high resale value, or longer warranty.
“A good deal is a feeling – not a number. Knowing how to handle ‘price’ in any situation is a critical skill for salespeople and their managers, when selling a car, truck, RV or boat. Getting bogged down in price conversations on the lot or on color or equipment objections before you build value, will kill your chances of selling more units and of holding any gross on the vehicles you do end up selling,” Verde continued.
JVSMT posts a new poll question each quarter on joeverde.com, an online resource with newsletters, online calculators, sales and training tips, Joe Verde’s blog, details about training classes, and more.
In addition, Joe Verde’s virtual training on JVTN® features dozens of training courses for salespeople, managers, finance, and service, plus hundreds of chapters on almost any situation in sales. The company introduces new online courses regularly to help dealers, managers and salespeople sell more units, at higher profits, in today’s changing market.
To learn about Joe Verde’s virtual automotive sales training programs online or to request a free demonstration, visit: jvtn.com or call (800) 445-6217. For information about Joe Verde workshops and training products, visit the Web at joeverde.com.