I hate Internet customers!

[Jeff Kershner]

I get so sick and tired of these internet customers. You can’t make a dime off of them and they’re waste of my time. Let me tell you WHY!

They come into the dealer armed with information and print outs from Edmunds, KBB.com and other various websites. You end up spending half the day with them; answering their questions, explaining to them that what they read in the forums is misrepresented truth, test driving several vehicles while they compare everything to their print outs. After spending half of the day with them, building rapport, performing a great demo and product presentation while being very professional and courteous, I have to hear “I know your invoice, back end and the dealer incentive for this car, so I want your absolute BEST DEAL!”.

Two to Three hours later I realized that I just spent way too much time with this customer AND I’m about to make a whole WHOPPING $50.00 bucks for a mini deal. Really, it’s not worth the effort unless it’s a volume unit that puts me over the edge for a bonus. Otherwise, I’d rather wait around for a normal customer to visit the showroom floor, someone that I have a chance of making some real money on, and someone that will appreciate the service and time I can offer them.

I’m not sure why, but the Internet sales manager still feeds me a few leads from time to time. You almost never get these customers to answer you back. I’ll send them an email with my contact info asking them to call me for more information on the vehicle they are interested in, but that’s a waste of time cause they never contact me back. MAYBE two out of a hundred times I’ll actually get someone on the phone, BUT when I do, they’re either a bunch of kids playing around on the internet or worse yet, some schmuck wanting nothing more then “YOUR BEST PRICE” only so they can shop around with my numbers.

The Internet sales manager keeps telling me that I need to follow up with emails and phone calls, phone calls and emails. He’s always telling everyone that it takes an average of 9 phone calls to get a customer on the phone. If that's not enough, I have to figure out this CRM to track and makes notes for all the emails and phone calls Iactually  do make. Who has time for that? I just want to sell a car and If a customer is truly interested, they’ll call me back or answer my freaking email.

On the rare occasion when I actually get one of these internet customers to come into the showroom, they usually want to steal my car and want FULL retail for their trade-in. Comeon people, you can’t have it both ways! I mean, this is a business and we are here to make money. The last time I checked there wasn’t a steeple and a cross on top of our dealership building. I thought we were here to make a profit.

You know what’s really interesting? My best customers (and the ones that give me the best CSI scores) are ALWAYS the ones that pay the most for their car, or at least allow decent profit. WHY IS THAT? Truthfully I’d rather have these people all day long. I don’t mind spending the extra time with these customers. I always remember my paying customers and send them cards during the holidays and even call to wish them a happy birthday. These internet customers have no loyalty to the dealer or the sales people so why even waste that much energy on them? The way I see it, the return doesn’t make much sense. And if they actually refer a friend or family member, they want the same nothing making deal.

I’m at work from bell to bell most days and this is what I have to deal with. Is this what the future holds for being a car sales professional? I'm not sure how much longer I'll keep doing this. I think I speak for myself and many of the sales people that have been in this business for sometime. Case example, look at Circuit City! They move over to a non-commissioned sales force, fire off all of their highest paid sales professionals and now their customer service is the pits and their stock is worth whole $4.63.  The Internet has ruined the car sales business.

Guest Posting by Earl Veteran
 

 

[Joe Pistell]

I agree with you Earl!

Remember back in the day when they inveted that d*mn telephone thing? Gall dern customers would shop us hard right over the phone. We'd give out quote after quote until the managers said "stop the madness!" and handed me a script to weed 'em out.

Earl, the REAL problem is that there are too many outlets, too much inventory and too much visibility (read: internet)... All of which is COMPLETELY out of your control.

If you're too old to do some old fashioned "bloody knuckle" prospecting then you are in a bad place.

 

[Brian T in Etown]

Wow! That sounds like my old school sales manager. You wouldn't happen to be from Ky would you? lol

 

[Lightnup (blog)]

Like I've always said, "Selling to the public would be fun if you didn't have to deal with the public."

 

[Brandon Hoffman]

I completely disagree with this post. You are blaming the wrong people for your issues with selling cars. It's not the publics fault for wanting the best possibly deal. Its the shady auto industry's fault for not just publishing a damn price and having that be the price (which will be the future of auto sales, mark my words). As soon as you introduce haggling and opaque pricing into an industry and encourage haggling you are pitting your sales force against the public. The public has the idea that you aren't their to help them (you are there to make the largest commission possible), hense forth they couldn't care about anything other then getting the best price on the car they want. They don't care if you make money or lose money and you can't really blame them, its not their job to care.

You don't see people in masses walking into best buy trying to haggle the price of a TV because they know that they can't. Trying to negotiate with a Best Buy salesperson is a futile effort at best. When Best Buy publishes a price, thats the price. Yes they may have a limited quantity but the price is not dependant on being a government employee, having lease loyalty, an 800+ Fico score, this much down, that much per month. The price is the price.

My personal opinion is that if you want to stop the internet bottom feeders, FIXED PRICING must be instituted. Then non discolosure agreements must be signed between dealerships and manufacturers not to disclose the cost of the vehicles. If people know they can't negotiate they will stop bottom feeding. If they stop bottom feeding dealers can make a decent amount per car without anyone knowing what the dealership paid for it.

I hope this makes sense

 

[Mark M]

This is the ultimate game of polynomial incompleteness.

Or, as my old game theory prof put it, five card draw with four players and three blindfolds.

Any way you slice it, information is a good thing unless you happen to be the person without it. Selling is still selling, and buying is still buying, no matter what technology we throw at this equation; the real heart of the problem is that what some buyers know has changed in ways that some sellers just aren't able to adapt to.

The solution? Either adapt to those buyers, or maybe find some other buyers... or find some nice cushy government job somewhere. Same options that have been available at the start of every new era, really.

 

[Bruce K]

As negative as this is, it's a realistic picture of why this industry has such trouble attracting & retaining sales people. The industry has driven "mini-deals" to be the norm where it's a game to see who can drop to invoice or below the quickest for the consumer. It's a game where you fall down the well and are thrown a sheckle for managing to live after you've hit rock bottom. Thank goodness for used cars otherwise many in this industry would be starving to death.

 

[CS]

Have you ever tried to sell something to a car dealer?

 

[Gerald]

I hear your frustration, brother, but what you need to do is ENGAGE the customer early, and sell yourself and your dealer. If you are not doing this, you are simply selling the same vehicle someone else has (assuming it is new). Why would someone want to buy from you? Is price their ONLY consideration? What about financing? What about customer service before, during and after the sale? Are these not important to them? If they answer negatively to these items and want "Your Best Price", give it to them and move on to the next.

I have found most people are simply afraid since they are on "your turf" and have all the information and power. They are simply trying to equalize the playing field by getting as much information as possible. Another tactic is to explain you and the other store are both in business for a profit, right? We both pay the same for the vehicle, right? So, how are they going to make money on the deal they are giving you? They are going to pre-sell the vehicle, load it up (if it isn't already) with dealer options, or stipulate they buy extended warranties, GAP, etc.

I don't think THAT much has changed since the adoption of the Internet. There has always been the expert who used to sell them, or he knows a guy who can buy them at auction, etc. Just kill 'em with kindness and move on.

 

[Chad]

To Brandon Hoffman: Just want to let you know that you can indeed nogotiate pricing at Best Buy, as I did it myself a couple years ago. It involves finding the right salesperson (hmmm sound like our business?), and making it a deal that will work for both parties (sound like the car biz again?), and will probably only work if you buy more than just a tv, ie complete entertainment system. With the research to backup your claims in hand they will work with you if you take the right approach. I've negotiated pricing on many items that I never before thought possible, but when you see something at a store you like to shop at that's much more expensive than another store's advertised price, you don't just want to give your money away! But by taking the right approach you can probably get them to match that price a lot easier than you might think.

I personally believe this goes for all business though. Before getting into the car biz I worked selling assembly and packaging services for a Non-Profit Organization that helps adults with disabilities. I had to work deals in that business in an obviously different way than selling cars, but when it comes down to it, it's all about having the right research done ahead of time and being able to back up what you say. With some customers I had relationships with the right people that could tell me when I submitted a quote that I was off the mark from the competition so I could take the appropriate action if possible, I had other customers that didn't go to anyone else for quotes, I basically named by price. In the car business, there are some customers that certain salespeople may not want to haggle with, and tell them for whatever reason the price it what it is. For others we may bend over backwards to get them the truly best deal we can.

I don't think anyone likes a customer beating them up with spreadsheets and binders full of other vehicle listings similar to yours at lower prices, but it is what it is. Adapt or move on. I do believe as much as the business has changed (I've been in 2 years and seen a lot of change myself), it really goes back to the early basic sales training. Build value in yourself, your product, your dealership, and realize that price isn't everything to everyone, but it is to some.