I had a customer like this the other day, here is how i responded to him;

Me to him..

XXXX,
Cars Direct appear to be on average $4k below sticker. If i can match that price can i earn your business?
Lee

His reponse..

i had hoped we wouldn't have to play this game but please quote me a price that will earn my business..

Me to him;

Tom,

I apologise, i am not trying to play any games, i am simply trying to find out what price i can earn your business at. I want to do my best to earn your business and buy from us. I understand you want the best price you can get as we all do, but by throwing prices out there neither gaurantees that you'll get the best deal, or can i be sure that i am quoting you a price that i can earn your business at.

So that being said, i am willing to sell you the vehicle for $68500 plus tax.

Please let me know if i can earn your business at this price.

Lee

I have an appointment with him this week

Nooooo John! I REALLY do like your idea! I love old school!

The web shopping experience is totally FLAT. The shopper sees "stock shot" after "stock shot" (right down to the perfectly dressed models in canned "lifestyle" shots) YAWN! IMO, the shopper will love the old school, humorous, personal dry eraser board presentation.

For those reps with the time and talent to execute your idea, I think it's a 100% winner! 2 thumbs up!

Joe

Joe,

I like it. Now I see why you called my idea "low-tech", which it certainly is in comparison to yours. That's a sweet idea. Maybe I'm too old school in my thinking.

I really like John Greenleaf's low-tech and personal email. It punches thru the noise and would have my attention for sure!

Here's another punchy custom email idea that has personal appeal, on the same plane as Johns, just a bunch faster to execute.

Incoming Call Scenerio:
(shopper): "I see your ad for a Make/Model, stock#..."

Click to expand...

So let's say our sales rep can't talk the shopper in for a test drive, or, if the unit that the shopper wants is sold and the rep needs to "create a bridge" for further discussions.  Our intrepid sales rep makes an offer to dig thru the inventory and send along some select units that hit the customers "wish list".  Our rep asks for the shoppers email address and goes to work.  He/She'll pick some stock numbers (includes CPO's if he's extra smart), then sends along a personal web tour of the unit(s) the rep thinks will be interesting to the shopper.

The email script sends along a custom message area with a offer to take the tour. Shopper opens their email, see's the personal message from our rep with an invite to click the link:

Example #1).  Stock# Tour

Example #2).  All Avalanches (new and used)

The Shopper's name appears on the top of the web tour page: 

>>>  A Web Tour for Jeff Kerschner  

Click to expand...

I'm no longer on the retail frontlines, so I admire all of the posts. I appreciate Brian's philosophy of sales for the future and I believe that to the degree ISM's line up with what Brian will determine their success moving forward. As a Dealer Support Manager for an automotive marketing firm, one of my daily tasks is as a National Sales Trainer, basically doing speakerphone conference calls for dealers that run our program, training them on how to handle the customers we send once they apply (direct mailers, etc.).

So, although I'm not on the frontlines per se, I am involved quite deeply. But, what do you think of this?

Grinder or not, when the lead comes in, it falls into one of three categories.

1) Simple response by email. This is for the basic question of a lead that did not provide a phone number.

2) Response by phone. Obviously, phone number provided. I personally believe, and teach, that nothing (yet) outperforms the phone, when it comes to getting a prospect into the store. By giving directions, small talk, rapport, write down my name, if you happen to forget my name just ask for the guy with the big red shoes, etc., appointment show rates go through the roof. I digress...

3) THE SPECIAL TREATMENT SURPRISE THAT SETS YOU APART FROM YOUR COMPETITION EACH AND EVERY TIME!!! Requires two basic props: 1. digital camera - better quality helps, doesn't need to be pro. 2. 14X18 dry erase board ($8 WalMart). From the lead (John Doe in Jeff's example) write on the dry erase board "John Doe's NEW MERCEDES!!!" Then take the camera and the dry erase board to the car, pull it out if its buried, take a sexy shot of just the car. Then lean the dry erase board against the wheel, leaving most of the rim visible, and capture a close-up of both the wheel and the board. Do the same two more times, one near the steering wheel showing some of that dash, and the last (may require an assistant to hold) above the rear bumper, showing the decal. Reply to the email with the 4 photos attached, the first (sexy shot) without the board, followed by the three with the customer's name on it. It'll blow him away!

Reply by mentioning any combination of the above posts (I really do like Brian's best) and early on, somewhere in the beginning, be sure to say: I've included 4 pictures of the exact model your looking for. Please download them and let me know what you think.

So, what do you think? Am I NUTS???

Dear valued client,

Pricing is important in your decision to purchase, and I would not expect you to pay more from our dealership than another. This is why we promise that if you can find the same vehicle with the same valued support from another dealer within the 30 day time period of your purchase we will refund you the difference.

We take pride in our quality service operations, we have ____ certified technicians who are OEM trained and certified in making sure that repairs and maintenance are done correctly. We will notify you of your scheduled and recommended maintenance 5 business days before your date by phone, email and snail mail for confirmation by you. If you cannot bring the vehicle in to us notify us within 24 hours and we will send our person to you to pick up the vehicle.

We have a loaner program available for our customer's convenience, as well as a shuttle service. If your vehicle requires overnight or longer service we will provide a loaner for your needs.

We are located conveniently for your needs at_____________. We want you to know that we will be happy to answer any questions you may have before or after you make your purchase and we have a 24-hour hotline that will be available for all our valued clients.

I will also give you my personel contact information so if by chance you have issues of any kind please feel free to contact me.

***The costs of this model can be built into the pricing strategy of the vehicle and service component costing. If this model is done well you will have very few complaints and you will see an increase in quality.

Teresa,
Very Creative, good stuff! KUGW! (Keep Up the Good Work)

Joe

There are key differentiators (aside from "your best price") at every dealership, whether you are selling Mercedes Benz, Kia, Ford, or Ferrari. As we all know, it can be difficult to highlight what makes us, and our stores, different from the competition via emails and phone calls. You can bet, though, that every salesperson (internet or otherwise) who attempts to differentiate his/her store from others will do so by talking about the simple buying process, the service after the sale, VIP programs, etc. How is the customer supposed to recognize an actual difference when we all talk about the same things? Response time? Probably not. I feel that the proposed email from Brian H. is on the right track, but he misses the mark by badgering (for lack of a better word) the customer into answering a series of mundane questions before he is prepared to give the customer a price. What if every store the customer sent his request to responded that way? Do you think he would take the time to answer all of those questions for all 5 or 6 ISM's? Or is it more likely he would go buy a 3-Series?

My point is, brooming the guy is not the answer...neither is barraging him with a battery of questions. Get the guy on the phone. Explain why you are hesitant to get into a bidding war. Ask him if there is anything other than price that is as important to him...listen. If there is, ask him how he is going to determine which dealership satisfies that factor the best. Then invite him in to show him how YOU will...whatever that factor might be! Tell him that at that time, you will be happy to make him the best deal you can, so that he will have all the information he needs to make a decision, not just part (the price part) of it.

Here is another idea: Why not have a "canned" email introduction from your service manager available to send these types of customers? Something like:

Dear Mr. Doe,

I happened across your email request in our system, and I want to take the opportunity to introduce myself. I am the Service Director at MB of... I know pricing is important in your decision, and I would not expect you to buy from our dealership unless you can get a fair price. But I also want you to know that we take pride in our service operations, in fact we have 23 MB certified technicians who are expertly trained in making sure that repairs and maintenance are done expeditiously, cleanly, and correctly...the first time. We have a fleet of MB loaner vehicles available for our customers convenience, as well as a shuttle service. Also, blah blah blah blah blah...I want you to know that I will be happy to answer any questions you may have before or after you make your buying decision, and whether or not you choose to purchase from our dealership. Good luck with your purchase! Let me know if I can help.

Sincerely,

Joe Blow

Joe,

Dealers using my platform are selling more cars with it than without it and will tell you as much. The point of dealers obtaining a shopping cart service is to tell consumers that they have it to get conquest selling opportunities and raise their dealership's website conversion rate (# viewing inventory ratio to # who are identifiable selling opportunities). A few will buy direct via the shopping cart, leaving the ISM's to sell the others.

My platform increases the need for ISM's in the stores that have it. Bit of a misconception in your post about that.

As for shared frustration around "nickle-dime grinders"... I did not agree that anyone should be so weak at sales as to allow such a consumer to control the process... If you sensed intensity in my post, it was because also I do not believe in being so rude and unprofessional as to just blow such a person out the door (or not respond to their lead)... As someone who has sold cars as well as been the GM of a store, I personally don't believe in making the leap that just because the consumer starts out with such a message that they have a deep felt conviction and need to be a jerk. I prefer to examine how it is that they thought they should interact with you that way (your technology, online experience, marketing messages)... and even if those are at fault, I always allow the consumer to disqualify themselves ("Nope, sorry... only buying on price"), believing that an ISM's response should be appropriate to getting the conversation onto areas the consumer should be thinking about... in other words "selling."

Maybe we are just different that way. Maybe (hopefully) the message in my post was just misconstrued.

If you would like to call me to discuss things (and I wouldn't offer if I didn't want you to), you can reach me at 937-643-1189. I am in the Eastern Time Zone.

Brian H.,
You may want to re-read Jeff K's. initial post. The topic here is how to reply to a "nickle-dime grinder" who's interested in a unit that is in high demand and in very short supply.

I sense by the intensity of your reply that sales for your platform are... less than you expected. May I suggest that you hire a sales force to sell your "no sales rep needed" platform (now that's funny!).

Joe

Internet 101...

Purpose of the email? Get the phone call.

Purpose of the phone call? Set the appointment.

You know the next step... And of course to build rapport throughout this process.

Jeff, your customer wrote that you could contact him through his account or cell. Just me, I would have tried to communicate soley through phone from there on out.

Only in the event the customer specifically requests to be contacted via email, would I then evaluate the situation on whether to 'show my hand'. Vehicle- rare or common, Distance- near or far, Email address- freebie (yahoo, hotmail, ect) or tied to a paid home/business account.

Saturday I sold a new Tahoe to a GM BuyPower customer that I used this strategy with that lived 3 Chevy dealerships inbetween and 40 miles away. Once on the phone and hearing his distress about pricing I knew this was the one opportunity to lay it down.

He drove in at noon and left at 2pm in his new Tahoe. Pricing above invoice.

How did I do?

Jeff, you can't blame a customer for doing something you didn't tell him he couldn't do... Through what medium did this customer come to submit the lead? What was the brand / experience / why buy from us / how we do business message that the consumer received prior to submitting what you received?

Is it the consumer's fault if he merely followed the technological bouncing ball he was provided, yet that wasn't the behavior that you wanted ("Hi! I'm online! Here's all my contact info! Can you please contact me so that I can arrange to come in to your dealership!)"? Is that really what you are expecting or is it only what you want? Would you do that if you were a consumer?

Is an online consumer under some sort of obligation to come in and go through a traditional sales process? Aren't most online consumers trying to engage in a different car buying process?

But I'm not here to criticise Jeff or anyone else. I do understand where the frustration of expended effort with no results comes from. Since this is a learning forum this would be my response...

Joe,

I will happily provide you with a price on the vehicle you have requested, but need to make sure I understand several facets of your vehicle buying decision first. I need this so that the information I provide you is 100% accurate and is appropriate to your purpose and needs.

Specifically, what is your estimated timeframe for making a purchase? At the moment the vehicle you have requested is brand new, in extremely short supply and is selling for full Manufacturer's Suggested Retail Price (MSRP). As with all recently released vehicles, that never lasts forever so your estimated timing here is critical.

Will you be financing (whether by loan or lease) your purchase?

Do you have a trade in? If so what is it? Do you owe anything against it? Have you had a professional appraisal and equity analysis performed already?

Are you familiar with our dealership's customers for life program and what that could mean to you?

Are you familiar with our dealership's Internet customer perks program available shoud you come in for a free purchase consultation?

Have you owned a Mercedes-Benz vehicle before?

Do you have any special uses for the vehicle that you would like to make us aware of? We never push, but if asked we are all trained to the highest level on the various options available on our vehicles. Frequently we get questions and asked for opinions as to how certain options are used, which retain their value best, which repeat customers rave about and which they don't.

Are you absolutely fixed on every option that you have requested? Expanding our search in terms of your flexibility will increase the range of vehicles that are likely to be available for you to consider?

And here is a thought that I always feel remiss if I do not ask... The purchase phase of your Mercedes experience is likely drawing to an end. After your purchase, you will presumably own you vehicle for a period of years. Have you thought about how your choice in dealership for your vehicle purchase can continue to be of benefit through your ownership phase. At Mercedes-Benz of Hagerstown, we have special programs to review with you that are only available to those who have purchased from our dealership. We not only wany you to be comfortable with your purchase decision, but with your entire ownership experience and have a number of programs to make sure that we deliver. Are you familiar with them?

Lastly, we also make available a number of what I call "Peace of Mind" services to make your ownership of your new Mercedes everything that you want it to be. Extended Service Contracts, Prepaid Maintenance, GAP protection, Credit, Accident and Life insurance are the ones our consumers seem to prefer.

I know this is a lot, which is why I would like to suggest an in-dealership visit to review all of your purchase considerations, make sure I understand them completely and so I can give you all of the answers you are going to need. Until I have those answers, I don't feel it would be responsible of me to quote you anything other than MSRP. I also know I can usually do a little bit better for you if you are here and my manager sees that you are ready to buy.

If that is comfortable, please email me a few times when you would be available to come in for the consultation and call me in advance to make sure you have everything with you that you will need.

My personal best,

Jeff

Then go back and figure out how to change your technology (Internet lead submission forms) to give you a different result.

Don't have powerful marketing messages like the above to communicate to your consumers around:

1) Why Buy From Us?
2) Why Come In?
3) Buy here, service here perks?

Whose fault is that?

I guarantee you that this person will single you out from the pack of non-responses and "here's your price" responses they do receive.

People buy from people they like. They buy emotionally and justify their decisions intellectually. If this consumers comes back just asking for price again, quote them MSRP and let them go. They suck as a consumer, just as they did in the days before the Internet.

Consumers hide behind the Internet, data and technology because they are defending themselves against salespeople who want to push them in to things they don't want to do. People like to buy, but not be sold. You stir emotions when you adjust EVERYTHING you do to nurture, understand and listen. The only person who should close a consumer is the consumer. You are just a tour guide.

The Internet is a different medium, but basic human and sales psychology still applies.

My company has the first shopping cart based ecommerce system for dealers to add on to their website. The same principle applies there. The need to transfer this human and sales phychology for maximum effectiveness is why our workflow and screens deliver a dealer specific brand message designed to promote comfort, nurture and educate. If you want the emphasis in your technology and process to not be on price, it is your responsibility to make sure it happens. There is no point lamenting when consumers do what you didn't tell them they couldn't do.

Good selling.

Hi,

I just ran into a customer like this last week. He wants a 2008 FJ Cruiser; a VERY hot vehicle. We went back and forth on options and I had to add several accessories to suit his needs. The MSRP for the vehicle is $32949.

Then I get the e-mail..."what do you think is a FAIR price for the vehicle?"

Here is the reply I sent him:

Hi John Doe,

Thank you for your reply.

For a fair price for the FJ Cruiser, Kelly Blue Book defines a fair markup for new vehicles at between 6-8%.

We would pay a realtor 5.4% to sell a home, and we tip a waiter 15-20%. Obviously, a new FJ Cruiser is a lot less than a house, and considerably more than a meal, so the great news is that we are right in line with what is considered to be a fair markup for a brand new FJ Cruiser.

We are happy to share with you all of the pricing information for the FJ Cruiser when you come in to reserve your new FJ.

I look forward to seeing you soon.

Teresa
~End Quote~

I too see no reason to whore out Hot vehicles just so someone can tell all their friends that they bent me over my desk and got a great deal. Then I have to give all of the referrals they send a similar deal. Especially when he had already worked with two other Toyota dealers in town and they could not find him a suitable FJ. This would be a custom order; and he just chirps about a discount.

There are 2 kinds of cars.

#1). Too much Supply (buyers market)
#2). Not Enough Supply (sellers market)

Jeff,
You're in class #2, BUT, you gotta hide your pride! I'd venture to bet that many of the other sellers are thinking like you are and will "opt out" of the bidding war.

IMO, When you got a #2 car, you go "old school" on the shopper. Meet his demands with a warm professional inviting response (which you're good at), but, take charge with YOUR DEMANDS.

I'll give it a go...

=========================

Dear John Doe,

Clearly you've been doing your due diligence. As you well know, this exciting new C350 is in limited supply and they'll take months to order. Requests are coming in & If you're interested in purchasing one soon, we should talk over the phone ASAP.

The new C350 we have in inventory is truely a sight to see. The options package has nearly everything you're interested in and the color complements the Mercedes owner as well. Should you stop in for a visit, you'll see this C350 has people circling around it all day!

Mr Doe, I am eager to sell you this exciting new Mercedes, but, because it's so unique and demand is so high, we'll only take offers in person.

I hope you appreciate my honesty, I hope to earn your business soon!

Warmest Regards,
Jeff K.

======================

How'd I do?
Joe

There are those who enjoy the shopping and negotiating game and we run into them in every business, it is actually fun if you make the time for it. Every dollar saved is 10 dollars earned is an old Chinese saying.

Having a competitive edge means possessing an advantage over your competition. This does not take the luck of the Irish, but rather some solid strategic planning. Before you can accurately identify your competition, it's crucial to first define and analyze your target market. What are you selling and to whom?

Make a list of those companies trying to do the same. What are their strengths and weaknesses? What are their strategies and goals? How do they draw in customers? What makes them stand out from the rest?

If you don't have this vital information, what are we doing in business? We shouldn't live in fear of our competition, we must find out who they are and what makes them attractive to their clients, why do people shop with them? Assessing competitors openly and honestly will play a key role in helping develop a competitive edge.

If we only compete on price than we better be the low cost dealer otherwise we lose.

A winning company is not successful by accident, though often it may seem that way. A closer look usually reveals that most have sized up their target markets and zeroed in on a unique approach to meet their customers' needs, values and expectations.

Through important considerations like location, product, services and product features, they have somehow found a fresh spin, a new way to offer service that many clients will pay more for the quality and piece of mind. Most people still like to work with a professional organization. The clients only looking for the lowest price you may not want; leave them to the bottom feeders.

HI Jeff,

I get this kind of request often. Leads have been off by 30% this month so not many lately.

If I have what the client needs instock or coming. I will sned them a price discounted by $500 as long as they have confirmed the color and options as your client did in the response emails.

I have found that as long as you have exactly what they are looking for and you can provide the service they are asking for in a timely manner, often times you can earn the business simply because you have provided quick service and a price. It may be the only price quote they receive and the only response.
I too prefer not getting in to a bidding war and certainly understand your thought process on that subject.
I also understand my boss wants every deal he can get right now.

When I was an ISM, I would check the local competitors to see what they had in stock before proceeding. For hot vehicles (there weren't many Ford, Lincoln, Mercs that were "hot", but there were a few from time to time), if I had it and they didn't, I would stand firm. If the competition had one, too, my response was very close to yours.

"Hi John Doe, We do have a brand new Edge in stock that matches your specs exactly. Currently, we are not discounting them, as they are selling very well without discounts. If you have a trade in, I can still save you money overall. We generally give more than the competition, so it would be worth your while to stop by and see me. Will you be able to stop by this afternoon, or will Saturday morning be better?"

We give enough discounts on regular vehicles. When it's a hot one, why give it away?

I usually do not comment on blog posts but I found this quite interesting, so here goes. Thanks! Regards, P.

fantastic breakdown, very valuable. I'm going through the process of interviewing SEO/site vendors and these are both true and perfect questions I've been asking. Now I'd just like to know, who are the best ones to use???

Great post although I have to disagree with the JD's original posting.

Myth #1: The more indexed pages does help with your SEO efforts as this is part of Google's algorithms. How big of a factor it is only Google knows.

To continue on this point. I believe it is extremely important that your website indexes your inventory pages individually not only for having more content, but also having FRESH CONTENT! Google's algorithms also looks at how often a website is updated.

That said, you add these two factors up and indexing your inventory is of great value.

I do agree that it will not help much with getting direct clicks to your site, eventhough I do see clicks with inventory specific searches, I think this is a very small portion of searchers.

Myth #2: Good point, but you are forgetting that you have more then just a used Camry on your lot. You have to add all searches for vehicles in your market that you have in your inventory to really make a valid comparison.

Myth #3: Never heard that before,obviously BS, so I have to agree.

Myth #4: Although lots of improvements have and will be made to make FLASH more search engine friendly, take a look at the big ecommerce websites and see whether they use FLASH. Nope that;s right, they don't.

My advice for dealers and website developers: Take a look at what the leads in the ecommerce market are doing. I am not talking about the car industry only. Look at how a website like Target.com tries to complete a sale and what kind of technologies they use. These companies spend millions on their design with attention to detail.

Target for example makes the steps to purchasing an item very clear and highlights the next step in light yellow, so the customer knows what to do next. These companies improve, because they have very good tracking tools on abandonment rates and many more things that allow them to improve both visitors and conversion.

Regarding the big sell in the market right now to get on the Video SEO. Remember, that having your inventory on Youtube does get you exposure, but does not get you the leads you want. Really the videos need to be on your website and hosted on your website, not embedded from Youtube or a third party provider. It is the same as some website vendors using a third party tool to display inventory on their dealers websites, which in return these pages are indexed under the third party tool's website and not the dealer website.

So, in short: Increase traffic to your site by using basic SEO techniques. Best way to do this is to have incoming links with keywords as the tag text coming from related websites.

great stuff, it always amazes me how many dealerships overlook a focus on organic search engine optimization. In my personal opinion it's best to stay away from flash, that said I do agree with you in that having a flash site isn't instant death, there are a lot of things we can do to optimize a flash website for a dealership.

I agree with a large amount of what you said, but like everyone else have some comments:

Myth #1/#2 -

Most of what you said was true, but when you used the example:

used toyota camry minneapolis" - 28
"toyota minneapolis" - 32,430

as the reasoning for being relevant for the major terms, I think you missed the boat. Although I of course want to be ranked high for "toyota minneapolis", I don't know what those searchers are looking for. It could be car (insert year and model), could be truck (insert year and model), could be SUV, service, parts, bodyshop, racing info, hats, t-shirts, etc. The point is those generic searches are definitely something that I don't want to be invisible on, but I definitely don't want to miss 28 people who did targeted searches for a specific car that I may have many in stock. As searches get more specific the conversion rates go up, and fewer competitors are showing up in the listings. And if I have a website that would deep-link directly to my used camrys then that would be a bonus too.

And I hope that vendors suggesting that even VIN's can be read are not saying that is how consumers would search, but rather that the spiders are reading specific content.

Myth#4

Most vendors have created their platforms in outdated technology and flash platforms try to stuff keywords at the bottom or around the sides, but the flash itself is not read.

BUT in 2007 Adobe released Flash 9 which allows for everything to be developed in text and rendered to the end user in Flash. This allows for spiders and bots to read the text version and consumer to get a professional experience. www.saford.com is a great example.

Joe,
our product mix/pricing seems to be pretty good. our used cars have a 33 day turnover - the new about double that. But thats well outside my area of responsibility.

In our state we are not allowed advertise ANY special pricing (internet only prices, employee prices, military discounts, rebates for returning chrysler customers, etc). Plus, whatever price we put on a website, the floor has to divulge and offer to every single customer who walks in. So my hands are tied in this regard - the GSM and used car manager call those shots.

I manage all the internet marketing, but I don't sell or set appointmets. Everything goes to the floor. So from that perspective, it's certainly a team effort here. Plus, my family owns the dealership, so I don't get too much flak

Internet sales is not a problem here - it's gone for non-existant to over 50% of our business in 12 months (new and used)

Are you working for an independent?
that would be a whole other story then, as used cars sales on the net are MUCH more inventory driven then new cars! Whereas I can generate tons of leads from keywords like 'dodge' or 'jeep', I doubt that an independant would enjoy the same success. You certainly have a much tougher road to travel... and hence long tail might just prove to be your bread and butter. i never thought of it from that perspetive.

p.s. how you anyone leave a post without showing your URL?

How can you NOT leave your URL on a site like this one? Talk abut authority!

SEO has low/poor ROI if you are the only palyer in your organization staying up till 3 am thinking of how to sell more cars! hahaha...

I had much better luck. I had a buy in from the top to use the Net as a cheap advertising tool. We mark down aged and offer up loss leaders to motivate shoppers (ala "old school").

Results?
I had SEO wired for lots of excellent long tail SERPs and it all worked! 20% of all sales were greater than 1 hours drive. Now that's new business and that's ROI!

Summary:
What good is all the countless marketing hours if your merchandise ain't positioned right?!!?

Killer Internet Marketing can only succeed with a TEAM EFFORT.

just my $0.02...
Joe