How should I approach getting a customer in the door?

[Scott Bretherick]

Johnny,

Personally I am given freedom to do as I see needed with all of my internet leads. And in my practices I have found it much more affective to only give an MSRP price and here is my reason behind this.

With the saturation of VW and Audi in my area, a potential buyer will recieve 5 emails within the day with pricing, and truely there is nothing that one dealership can do that another one (pricing wise) can't. Giving a customer an MSRP price sets your bar to hopefully be at the top of the list, then gives you a chance for everyone else to place their bids, then come in as the lowest and last bidder in the end. Setting a pricing bar and continuing a relationship with the customer will gain personal trust and the worth that you are actaully giving them a better deal. Once a price is in their heads, we all know how hard it is to justifiy having to make it higher.

Also finding a point that allows them to shop everywhere else first, and let me be your last place to shop.

 

[Noland Harris]

Johnny,

Your comments are appreciated.

I developed the VP$ concept a few years ago as an annual direct mail piece and as part of my inquiry response program. My customers and prospects loved it. While my market was mostly upper-end, customer in lower market segments seemed to quickly grasp the concept.

After all, everyone, rich or poor, has a monthly budget. Additionally, VP$ opens the customer eyes to vehicles and trim levels that they may never thought of - vehicles that may be in the dealer's inventory. And VP$ displays manufacturer special offers along side the dealership's standard financing package.

Lastly, VP$ displays are an excellent reference. While they may not have all the specifics, they provide an immediate framework for communications without the gimmicks.

I invite you and any other sales personnel looking for a new way to reach their market to give us a try. How about a personalized (picture and a brief bio or sales message) direct mail program featuring the new model year?

 

[jakewirth]

First you need to step away from the dealership and make yourself a customer and this exercise will be very easy:

If you are worrying about money than it means one thing man, you dont have enough volume. So here is how to get it.

Step 1:
google search for Volvo in your metro area (i used san francisco)
these were the top 2 results and the text is from the description of their websites:
"New ...Royal Motor Sales of San Francisco Volvo sells new and used
Carlsen Volvo | A Palo Alto, San Francisco, Oakland and San Jose ...
Carlsen Volvo is a San Francisco Volvo dealer in Palo Alto, CA featuring a large inventory of new and used cars. We proudly serve as an Oakland Volvo dealer ..."

Lesson 1:
So Johnny we make damn sure we have the same and better keywords on our website day one. Also you need to get on Google Local with a Map and verification, it makes SEO organically much easier!

Step 2:
Search AutoTrader and Cars.com. Where are your cars and do you have 12+ photos for each? It's that simple, if you do have 12 photos for each piece of used inventory combined with a custom description you WILL receive at least 1 lead for each number of inventory on each lead provider website monthly!

Lesson 2:
see Step 1

Step 3:
How bad@ss is your website? Can I chat live with you when you are at your desk? can I see 12 photos and a custom description of each vehicle on the lot? is the damn site updated with specials!

Lesson 3:
Don fall victim to website laziness you need to eval-u-update your website at least every quarter!

Step 4:
Do you have a lead management tool? Get iMagicLab for $500/month and be done with it! set up an automated email process, pick up the phone at least 25 times a day and you will close 15-25% of all your leads

Lesson 4:
Dont be afraid of the phone! don be afraid of keith latman! don be afraid of paying 500 bills each commission check cause you WILL make it back, i pay out of my pocket for the tool and i dont even sell cars!

Step 5:
1+800 NUMBERS do you have them? If you dont get them they are cheap call callbright an setup an acocutn for $250/month with a couple cut numbers like 1-800-BUY-VOLVO or whatever and put them all over your advertising online and the website should ONLY show this number for sales.showroom. Then direct this number to your cell phone and start closing appointments!

Lesson 5:
Leads come from all places, make sure you get every phone call you can the first ring! the secretary will screw up the process if a salesman is not on the horn within 1 minute!

Good luck to ya Johnny hope my madness helps. I setup about 100 internet departments nationwide and saw the same thing everywhere man it is universal just follow these numbers:

- 12 photos + description = 1 lead for each inventory piece/month
- Call 25 leads a day form the last 60 days = 5 extra sales monthly
- Set appts with 50% of leads 30% show, sell 75% with test drives bam you have a 15-25 close ratio on leads!

Good Luck

Jake Wirth

 

[Wayne Anderson]

We setup a pricing policy that encourages our customers to go out on the Internet; find they price they want to pay and bring it with them. We tell them we'll work with their price. The keywords here are 'work with.'

Its a way of addressing price without being cornered for a specific price. It gives the customer hope for gain and a sense of control.

The fact is, rarely does a customer bring in a price. Even if they do, our sales people are trained very well to switch the customer to a different vehicle. It's industry fact that approx 70% of people change their minds. They bring in a price on a car, but land on a suv. Now what good is the pricing info they brought in for the car?

We also explain our pricing policy keeps us from having to publish our low prices on our website for all our competitors to see. We do all we can to keep our costs down, blah, blah, blah.

You get the point...

Best Regards,
Wayne Anderson

 

[Shaun Raines]

Johnny,

Great question for the DealerRefresh audience. A few comments seem self promoting to me, but the one's from your true peers have some value.

Any method of getting customers to come in without answering their questions or providing the information they're looking for, forces you into traditional, manipulative, soon to die, consumer hated car sales tactics. If I ask you for a price and you give me bull$#!+ or offer me a cheesy gift to come in and talk price, your opportunity with me is over! Those dealers that continue to search for new ways of manipulating and controlling customers are simply putting off their demise.

You stated that you understand what your owner is trying to do. This is good, but it is essential for you to know that this is the wrong way.

"Get 'em in."
"Sell the appointment not the car."
"Your presence is your leverage."
"What will it take to get you to take it home today?"

Give me a break!

You must answer your customers questions, including price quotes. You'll lose more sales by not offering a price than by offering one and isn't it easier to find out early in the process that your prospect will not or can not buy than it is to find out later? What tone are you setting in the relationship with your prospect when you refuse to be straight forward and honest in the beginning?

The answer to your question is that any method that avoids taking care of your customer and treating them the way you would want to be treated is the wrong way. You're looking for ideas to get people in without giving them what they ask for. Is that the kind of experience you would want? Would these Jedi mind tricks work on you?

If you can't get your owner to leave 1987 and embrace what's going on in 2007, you many need to search for a store that truly sets you up to win. Crafting skills meant to manipulate and control customers will not benefit your future. Don't just think progressive, be progressive.

With encouragement and hope,

Shaun

 

[Johnny Swartz]

Thanks for the comment Shaun you absolutely right.

Jake, I have taken your angle at things and trying to get more aggressive with a website, SEO and Autotrader. While this is not an instant solution it will benefit me down the road while I try to convince him what he wants me to do makes no sense.

-Johnny

 

[Jeff Kershner]

Sorry for taking so long to get into this discussion.

Johnny, what you are experiencing is what I would venture to say 80% of the ISM's out there are are dealing with. Have a little respect for your manager and his position. His pay plan and lively hood is contingent upon making money on a product that a company deserves to make a profit on.

This is what makes this business what it is. This is what makes this business so hated by the consumer as well. But then again, it's BUSINESS and until the manufacturer adopts ONE PRICE we as sales people and as consumers have no choice but to work with it.

You have a percentage of customers that are all about price. It seems they don't care who they buy their car from, or the dealer they buy from. The lowest price is their main objective in the beginning.

You also have a percentage of consumers that are looking for the right deal. They want to build a relationship with someone and feel comfortable with the person they are spending so much money with (that's many of us!).

In order to find out what customer you are dealing with you need to take the right steps.

1. Your first email to the customer needs to help identify this and even create a little urgency.
2. (Can you) transition the customer to the phone?

I say "can you" because someone that will allow you to transition to the phone, 9 times out of 10 will allow you to build a little bit of relationship with them. This is where you NEED TO SHINE! I like to refer back to some Grant Cardone training here. GIVE GIVE GIVE! Give your customer what they want, what they deserve. Offer to fax or email the customer more information on the car, the CarFax or AutoCheck printout, an article from Car and Driver, Crash test ratings, performance ratings..even a credit application and a of course a huge copy of your business card along with a personal thank you note. Scheduling the appointment with the relationship builder will come easy once you GIVE to the consumer what they are looking for. Hey, they deserve it..they are looking to spend a lot of money with you!

Maybe you're unable to transition the customer to the phone. Now your shooting in the dark, right? I'm sure you have heard this before, especially if you have been reading dealerrefresh for awhile. If you do not provide the customer with what they are asking for (price) then you have about a 2% chance of ever earning this customers business.

From your seat (and I have been there before) you have 2 options. Slowly get your manager on board to allow you the flexibility to get done what you need to get done OR deal with it and focus all of your energy on working on the consumer that wants to build a relationship with their sales person by transitioning that customer to the phone. Let the hardcore price shoppers drop. YES, I know some would be quick to ridicule me writing that and I'm not saying to totally drop this customer, keep them in your radar with some frequent emails. But at the end of the day focus your energy on the low hanging fruit in front of you.

The relationship builders seem to be dwindling away but they still make up a majority of the consumers out there. Once you get this customer to visit your showroom they deserve the BEST you have to offer. DO NOT skip steps, give that customer a million dollar demo and presentation of the vehicle they are interested in, don't assume they know everything and of they know more then you then your not doing your job! Qualify the customer to be sure they are purchasing the car they need and want. Build that relationship and make a customer/friend that will buy another car from you in a few years.

Jeff

 

[Johnny Swartz]

Thank you Jeff, Good advice.

I am trying to transition to the phone as much as possible as that seems to be the only way that I can make something of the leads I get. What I really struggle with right now is the customer that either does not provide a phone number or will not give one. Like you said these are the people that you need to "drop" and send out an email here and there in hope to get a 2 way with them to build a relationship. Thank you for all your responses.

Johnny Swartz

 

[Chris K]

Looking over all these posts for this thread, I see that most people have the same issues. Lets face the fact that if you take 100 leads, within that group you have a cross section of the same type of people you meet on the street, or on the lot... there is a percentage of most personalities, some strokers, kids, etc. What I am doing is telling people in my first email that """"Hey - we got your internet request on the 2006 Ferrari 599 GTB (I wish), do you remember filling out that form sending it, that's why you're hearing from me? and Hey - the next step is the most important one: I will be calling you to make sure I got my facts straight, discover those small details, to find out WHATS GOING TO BE THE MOST IMPORTANT THING ABOUT THE NEXT CAR YOU OWN... and by the way, what is your phone number where I can reach you at, so I can help make this a great experience for you, whether you buy from me or NOT"""". I include my picture, links, hours and a motivating quote at the bottom. Now if someone doesn't reply, I mean give you the courtesy of a call or reply, especially after repeated attempts, why in the world would you send them a quote, especially if you haven't discovered the small details and what's important to them? Are you a Quote Clerk? Be a professional. Presently I am in the process of allowing the Law of Attraction to magnify my life experience, so I can be all I can. In a nutshell, when I do speak with someone, I immediately try to set up and appointment after a little discovery of their situation. If you ever speak with someone, ask them the million dollar question: WHATS GOING TO BE THE MOST IMPORTANT THING ABOUT THE NEXT CAR YOU OWN? I assure you that 98% of the ISM's and Salespeople they meet, NEVER ask them such an important question. I learned that you do not have to be better than anyone else - just be different by being yourself.

 

[Ray Doster]

Hi Johnny,

I can feal your pain. It's very frustrating to be instructed to do something that you just know to be counterproductive to your cause. There have been quite a few posts with many good ideas prior to mine. I don't have anything different to say in that regard, but I do have one suggestion for you.

If your boss is open to any ideas at all, or if your comfort level permits doing it on your own, I would suggest taking a noticable percentage of your monthly leads and doing exactly with them as he would have you do. With the other percentage, or a test group, do with them as you think they should be done. At the end of a three month trial period, examine the results as to which method works best. If everything we hold to be true works as we think it should, there should be a noticable difference in performance between the two groups. If you can prove your way works better, how can he refuse?

Ray