Evil Dealers and the Slaughter of the Innocents

[Mat Koenig (blog)]

Tom,

I agree with your statement completely. However, I think the reason we 'bend over backward' is because something hiccuped along the way in the process. Let's face it, if the customer likes us, they don't slaughter us in the surveys. If they slaughter us on CSI we can do one of two things:

Say "what a jerk, he/she was nice in person but obviously an awful customer blah blah blah..."

Or, we can get a mirror and say: "How do I prevent this from happening again?"

My point is this: if we take responsibility we will sell more.

 

[Jeff Kershner]

Matt, as hard as it is to understand, you're totally right. Take responsibility for everything that happens. Everything. It takes a while to grasp this concept (heck, I still have remind myself) but once you do, it helps you grow not only professionally but on a personal level as well. It's what also makes for great leadership.

 

[DennisGalbraith]

What a fantastic discussion! The need for accountability, as so correctly pointed out by Mat and Jeff, is not going to go away. When Scott says, "The customer learned from the best…the dealership personnel," let's recognize that the past-tense nature does not mean the retail sales habits of yesterday. It means the retail habits so many people are exposed to the first time they buy a car on their own.

Young people are often so worried about getting financed they can't keep up with the ink flying on the four-square sheet. The average age among auto salespeople is considerably higher than it is at BestBuy. For many, it is the first significant transaction they ever make with a much older person. They often listen to the nice old man the way they were taught to and get lied to up one side and down the other.

The art and practice of screwing young people is alive and well. The repercussions will last long after the practice has ended. At too many stores, the end has not even begun. Knock it out of the park with great social media and demonstrations of value and honesty. That is the way to kill this beast.

 

[Mat Koenig (blog)]

Well put Dennis It's funny that you bring up the four-square because I kid you not I saw more than one dealer in the past two weeks that was using the same four-square worksheet that I first met in 1993.

And almost verbatim, the manager was telling this poor newbie to start high on the price, low on the trade, short term the payment....blah blah blah.

You can't ever go wrong when you're just honestly selling the value of your product.

In 1996 I worked at a Toyota dealer where we had one price used cars. No haggling period. I remember a guy walked on me over $300. I told him all the service and everything else we did to make this car nicer than any other Camry he'd ever find. He left...then 2 1/2 hours later he came back and said, "you stuck to your guns and were willing to let me go so I'm going to trust you...but it damn well better be as nice as you say."

He bought the car and I made a really good commission, that I felt great about because I knew I was honest with the guy and the car was immaculate; like every car that we had at that particular dealership.

Value is something a customer deserves. Honesty is something a customer deserves. A well trained professional is something a customer deserves.

If a customer arrives angry it may be the last dealer's fault but if they leave angry...it's our fault.

(And I know these are things I was reminded of when I had the privilege of working with you Dennis)

 

[Scott Hengtgen]

Accountability is a lost art for a lot of dealerships, from the dealer down. Selling a car is really an easy process untill you put the human equation in the mix. So many stores just go nuts when you tell them they should offer all the information a customer needs and wants. If the customer was not committed to buy he would not be at the store. I believe you should write everyone that steps foot on your lot. Don't be afraid to be different and make the buying process fun for the customer, honest and transparent with real numbers.

 

[Kim Clouse]

Professionals in sales learn to build relationships over time. They know how to under promise and over deliver even in the smallest degree. If there is no relationship building so the customer can feel confident about referring family, co -workers and friends, They feel like another number and act like one. The overall problem is car sales staff get paid for the now, leaving no reason to realize the importance of the later.

 

[Cookie]

Dealerships do more than Sell Cars. I have personally experienced on numerous occasions Greed and Dishonesty from the SERVICE departments. Those experiences affect my perception of the dealership as a whole. To be fair however, I have experienced some truly exceptional services visits over the years. There are a few dealerships that I walk into where if I'm told it's $1000+ dollar repair...I don't blink an eye. I trust them. Whenever possible I patronize "reward" these dealerships for their honesty and integrity over the years. When buying a vehicle I want the simple truth in the pricing. If the difference between dealer A and dealer B on even "identical" vehicles, I'll choose the dealer I want to continue to work with over the years...a few hundred dollars isn't going to change that...but a few thousand dollars difference....

 

[Alex Snyder (blog)]

Kim - that's one of, if not the, biggest problems with things today: NOW. It is all about now.

When I was selling cars I was caught-up in the now. It wasn't until I moved into a management position that I learned to look past now. Once I began thinking about the future I started to grow. Without empowering people to think beyond now, things will never change.

NOW = Arrested Development.

 

[Ad Hustler]

They want to negotiate the price because that's what car dealers have TRAINED them to do. Since everything's all about sales and discounts the consumer always thinks that they are getting ripped off if they aren't negotiating.

The best thing manufacturers could do is just set prices and allow no negotiation. This way the consumer could get re-trained to not worry about getting ripped off and rather choose the car that's best for them. It would also allow dealers to make a bit more money.

 

[Joe Pistell]

YOU ALL ARE SO SELF-INVOLVED YOU ARE MISSING MY POINT. Roll with me, this'll be a test in creative thinking.

The universe does not revolve around the earth (even though it looks like it does). Have you ever heard of "Horse-Trading"?

(hôrs'trā'dĭng)
n.
Negotiation characterized by hard bargaining and shrewd exchange

Like dogs that circle before they lay down, we humans have been negotiating, bartering and grinding for thousands and thousands of years (and I am not exaggerating).

Here's my summary.
We are not the enemy, our CSI is way better than many many industries, buyers by nature are NOT loyal, negotiating is driven by the buyer and buyers negotiate for VERY PRACTICAL REASONS.

Don't bail on me yet, I'm just getting going!

Do buyers intuitively want to negotiate?
More often than you think! I challenge you, find someone in Real Estate Sales, buy them a drink and listen to them burn your ear off about how shoppers will grind the seller even if the seller is below market. Or, see it on TV. Watch HGTV's "Property Virgin" (or any other real estate sales show), you'll watch the noobs AND the veterans grind the sellers.

I challenge you; Look at the video above.... AGAIN.

It was crafted by a vendor who was tired of being GRINDED by buyers. Take off your car-guy hat and think about it.

Don't get hung up on my use of the word "grind". Here's my loose definition of grinding: "questions and posturing coming from buyers with the aim and
purpose to move the price lower" I really should use the term "negotiating". You understand. Let’s move on.

Ok, look at the video above.... YET AGAIN.

Think about how grinding techniques are "out of place" in many retail settings.

Can you see a pattern?
We see negotiation is linked to high dollar transactions AND it's not limited to Cars. Look a little deeper; did you notice it's "discovery based" negotiation? Hmmm....

I'll repeat that!!!
"... did you notice it's "discovery based" negotiation?"

Jeff Kershner TOTALLY NAILED IT
"...In the end people want to feel confident in their purchase. In order to help the customer feel confident, allow them to base their buying decision
on facts and not emotion."

See how that fits? Price discovery and confidence?

If car shoppers have all the tools needed to find the car at the best price, then why do they WANT TO NEGOTIATE before they buy? People grind (negotiate) for price discovery from the seller. Yes, there are market prices out there but don't think that market prices from other sellers is ONLY what the buyer is fishing for. What the buyer is looking for is reassurance that they've found the sellers unique buy it today number, or, they are looking for that last little personal discount to consummate the deal.

Buyers have a task and that task is to work the seller AND to feel confident that they have done a good job (buying is a task!)

To defend against this BUYERS NEED to "test the seller", all along the presentation, sellers need to prepare the buyer with word tracks and merchandising tools that prepare the buyer for the "negotiation dead end" that is coming. Remember, Negotiation and emotions are bedfellows. If you don't "reward" the buyer with a price drop, then expect emotions to rise as the decision point is at hand.