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Customer experience and how to obtain profit....

jmcreavy

3rd Base Coach
Jun 15, 2014
41
8
First Name
Jared
I've been in the business for going on 7 years now starting from a Product Specialist and working up to an Internet Director and covering the Sales Desk.

I've served in the U.S. Army, grown up as a Mechanic, done several different job types and decided the sales side of the Auto Industry is where i will call home. I am passionate about taking care of customers and earning a great living while giving back to the community.

I would like to hear from the DealerRefresh community on your opinion for how to provide a transparent experience while obtaining the most gross possible.

I've seen and heard tactics being used...pricing differently online than you do on the lot, using figures online you wouldn't agree to in person just to get them in... quoting using rebates most don't qualify for then bumping them when they come in. How do you feel about these tactics? Justifiable or do they set you up for future failure?

Go!
 
I've seen and heard tactics being used...pricing differently online than you do on the lot, using figures online you wouldn't agree to in person just to get them in... quoting using rebates most don't qualify for then bumping them when they come in. How do you feel about these tactics? Justifiable or do they set you up for future failure?

Go!

I read a lot of negative reviews Jared. The vast majority of them mention at least one of these things as the primary reason for the negative review. ;)

I'll borrow a thought from the DrivingSales Executive Summit to try to help stimulate some conversation. Disruption of retail automotive will be ushered in by the disparity between the consumer's expectation and their perception of the consumer experience. Are you familiar with Uber? Nobody cries for the cab company's gross profits when Uber comes to town. Why? Because the consumer strongly prefers the experience with Uber.

"Just get 'em in" strategies like these are kind of like hoping people will continue to stand in a gutter in a heavy downpour trying to hail a cab even though they have the Uber app on their mobile device!
 
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Thanks for the insight Ryan!

I look at it like this - Tactics to get people in the door these days sets us up for failure in the future. The customer may leave happy at first..... but when they try to get out of the car and realize they paid more than retail for a new or pre-owned vehicle, how likely do you think they are to come back to you?

Or people who say they won't give the customer a sale price or a trade-in figure over the phone. I'd rather give them an idea of what we can do and set them up that we may potentially do more once we see it.... or give them our best price but say "my GSM has been known to do better as your presence is your leverage."

I'd like to hear more from other people as well to get this conversation really going! What about you Mr. Kershner? You always provide some great insight along with Joe Pistell and Alex Snyder!
 
It is safe to assume 90% of the people buying cars have done online research. Many of those people are hitting your website, so showing two different prices anywhere makes you look shady. I think Ryan's point about those being a lot of the negative comments on bad reviews is a great example of why you should only have ONE clear price.

You ask about customer service and I believe most of it comes from the service department. It is a lot easier to make customers happy when you're dealing with them once every 4 years while they're excited, and then rewarded with new wheels. It is entirely something else to make them happy when they've inconvenienced by repairs or maintenance on their old wheels.

Profit comes from the excellent work of service departments.
 
Alex I agree with you on the clear price and on Service Customers and the customer service aspect....

However, I do believe that as Dealers we need to put our best foot forward with customers who are shopping. Why? Because if they catch wind of the Dealer being shady they will not return, but they will also tell everyone about the experience they had.
 
I think a lot of the online pricing methods are beneficial for high volume capable brands, like Honda. Consequently I've found if you don't have a huge new car inventory in comparison to the market area's competitive set as well, don't waste the profit opportunity. It might be better to price a few vehicles online aggressively which you just need have to go, like demos, old units, etc. At least that way the shopper has the feeling you'll work with them to deliver a great deal. Also due to time required I notice dealers tend to want to price aggressively across the board on all models for new inventory, maybe consider pricing new like you would used cars individually with a pricing platform like vAuto or Redbumper.

On the subject of profit I would say offer more incentives for salespeople to sell accessories, wear protection (rust proof, interior bonding), have a good method to work referrals, maybe consider paying qualified veteran salespeople on the front and back off the deal - we've all seen good sales agents set up the finance agent so well all they needed to do is have the customer sign and they from a sizable commission. They are obviously more options in the finance department, one I've seen perform well if offered every time are service maintenance contracts.

HTH.