Do we give consumers too much credit?

[ddavis]

If their lips are moving! If you tell a customer that their trade is worth $12250, they say they were offered $13250 down the street. Ever notice that it is usually an even thousand more? It wouldn't bother me if they said that they think it is worth a thousand more. It bothers me when they lie.

An old Cajun worked me for nearly three hours over $500. Once I agreed, he told me that his investment, in time, was worth nearly $200/hr. He told me, "that is much more than I make on the job". He never lied to me. He told me what he was willing to spend. Once you shake hands with a Cajun, it's a done deal. That was a light deal but I sold several of his friends.

I negotiate all of the time. I have a deal with my cleaners. I get my dry cleaning at $2.50 per item and my shirts for a buck. I like clothes and have nearly as many shoes as most women. I never pay retail. I will pick up 4 or 5 shirts and negotiate a discount. Do they get upset? I have had salespeople at Nordstroms and Dillards leave customers to wait on me.

 

[Brian Marchini]

I think the real problem is that we have a tendency to lump all consumers into one group. What cracks me up most is the idea of a sales funnel. I get sooooo tired of seeing a "funnel" indicating customers habits and how they progress through their buying process. The truth is there is no funnel. People bounce all over the place and follow their own path when looking for a car. Some follow the model of the funnel, some follow something like an hourglass. Other jump across "funnels".

I think the same can be said about this topic. One of the easy things to forget about "customers" is that we are one as well. But we are not like them all. You could probably divide most people into 4 loose categories. There are the varying degrees of hammers. And there are the lay downs that just want to buy. There are those that are researching the death out of these because they are either car nuts, engineer types or just don't plain trust us. And there are those that just like to talk with a dealer and go with a group that provide them the most service.

Do we give customers too much credit? I think in the real world, we don't give them enough. How many times are we going use a choice of close? or "if I could would you"? or we need to see your trade? or we just go this one in? Do we really think folks haven't heard the Verde closes before... or even the phone ninja ones now (though I do like the phone ninja scripts) We approach most customers viewing them as a first time buyer. and on and on. In reality, most have already been through this song and dance before.

It is important to remember that these are customers. They are people... just like you and me. Everybody wants something, and if you help them get it, you might just get their business.

 

[ddavis]

We approach most customers viewing them as a first time buyer. and on and on. In reality, most have already been through this song and dance before.

It is important to remember that these are customers. They are people... just like you and me. Everybody wants something, and if you help them get it, you might just get their business.

This thread begs the question, how did they get so smart? Between the manufacturers and dealerships, we arm them with all of the information they need.

If they are shopping for a used car, they have the book values or they can go to the Cars.com or AutoTrader, pick a vehicle and sort by price.

For new cars, they have Edmunds, Yahoo Autos, TrueCar and a host of other sites that provide our invoices straight from your manufacturer. Many of these, and some of the manufacturer sites, have utilities so customers can get quotes from several dealerships simultaneously. On volume vehicles, dealerships quote them $100 over net.net or even below. Any Internet Director, that is shopping the competition, knows this.

65% of shoppers don’t email or call the dealership before they arrive. That doesn’t mean that they haven’t contacted the competition or have a breakdown of your invoice. They shop to keep the local guy honest.

When these customers show up to the dealership they not going to show you their hand. They will be very protective of their knowledge and where they got it. They want to see what you are going to do. This is where the “disconnect” happens. If you don’t close them store #2 will.

 

[Brian Marchini]

This thread begs the question, how did they get so smart? Between the manufacturers and dealerships, we arm them with all of the information they need.

If they are shopping for a used car, they have the book values or they can go to the Cars.com or AutoTrader, pick a vehicle and sort by price.

For new cars, they have Edmunds, Yahoo Autos, TrueCar and a host of other sites that provide our invoices straight from your manufacturer. Many of these, and some of the manufacturer sites, have utilities so customers can get quotes from several dealerships simultaneously. On volume vehicles, dealerships quote them $100 over net.net or even below. Any Internet Director, that is shopping the competition, knows this.

65% of shoppers don’t email or call the dealership before they arrive. That doesn’t mean that they haven’t contacted the competition or have a breakdown of your invoice. They shop to keep the local guy honest.

When these customers show up to the dealership they not going to show you their hand. They will be very protective of their knowledge and where they got it. They want to see what you are going to do. This is where the “disconnect” happens. If you don’t close them store #2 will.

That is an excellent point Davis. Sometimes our customers customers are dumb like a fox. I must admit that I do similar things to my cable provider. Every few years when I call to renegotiate with comcast, I usually arm myself with the latest promo that verizon or somebody else has. I know there are restrictions on the offers, but I am not going to tell comcast that. My conversation usually goes something along the lines of, "I really don't know how they are doing it, but Verizon if offering $XX.XX per month for the same thing. I really don't care if yours is faster because it doesn't do me any good. I want to stay with you guys, but I can't justify spending that much more especially being a single dad... blah blah." After a couple of times back and forth, I have never spend more than $40 out the door for the their fastest internet.

I love when uninformed dealers try and tell their customers that kbb.com prices do not include destination or something when they do as do most of the quotes that I shop. Funny thing is, we play dumb on alot of things too.

A well proven strategy to get what you want to often "play dumb". I know. My ex-wife did it to me all the time until I realized it... too late.

 

[ryanabbott]

That is an excellent point Davis. Sometimes our customers customers are dumb like a fox. I must admit that I do similar things to my cable provider. Every few years when I call to renegotiate with comcast, I usually arm myself with the latest promo that verizon or somebody else has. I know there are restrictions on the offers, but I am not going to tell comcast that. My conversation usually goes something along the lines of, "I really don't know how they are doing it, but Verizon if offering $XX.XX per month for the same thing. I really don't care if yours is faster because it doesn't do me any good. I want to stay with you guys, but I can't justify spending that much more especially being a single dad... blah blah." After a couple of times back and forth, I have never spend more than $40 out the door for the their fastest internet.

I love when uninformed dealers try and tell their customers that kbb.com prices do not include destination or something when they do as do most of the quotes that I shop. Funny thing is, we play dumb on alot of things too.

A well proven strategy to get what you want to often "play dumb". I know. My ex-wife did it to me all the time until I realized it... too late.

Easy now. I take exception to that!!

 

[ddavis]

Easy now. I take exception to that!!

Ryan, I believe that you need to clarify this. Reading this, it sounds like you are his ex-wife. You do live in New York where they allow this sort of thing.

 

[ryanabbott]

Ryan, I believe that you need to clarify this. Reading this, it sounds like you are his ex-wife. You do live in New York where they allow this sort of thing.

The DUMB like a FOX part. I work at the FOX Dealerships. I'd rather he picked a different animal. An armadillo possibly?!

 

[ddavis]

Sorry Ryan, I was reading the last line and didn't notice where you highlighted dumb like a fox.

 

[Kelly Wilson]

Customers may be dumb as a foxy armadillo; but with a manager playing possum to hold gross, salesmen that look like a squirrel on the road between their desk & tower and the starved F&I polar bear waiting for a seal...how can they not come bearing arms full of research & quotes?

With shows like " Call Me Fitz" and " Carfellas," the MadMen episode & the Internet sites where anything you want to be told can be found...What is the public perception of anyone associated with the "CarBiz?"

 

[ddavis]

Customers may be dumb as a foxy armadillo; but with a manager playing possum to hold gross, salesmen that look like a squirrel on the road between their desk & tower and the starved F&I polar bear waiting for a seal...how can they not come bearing arms full of research & quotes?

With shows like " Call Me Fitz" and " Carfellas," the MadMen episode & the Internet sites where anything you want to be told can be found...What is the public perception of anyone associated with the "CarBiz?"

One of the biggest fears, when dealerships got involved in the internet, was that the dealership would become an "internet store". They feared this because they didn't understand how they could incorporate this and still make money. I'm convinced that dealers that take this leap will be wildly successful.