Price or No Price? Pricing your inventory.

[William Bryant]

Price is often such a touchy topic, where old-school sales people (most of whom are now our managers) don't believe the customer has any business knowing the price, and it takes some coaching to get them out of that thought idea.

Customers will shop you regardless of you giving them a price or not. The difference is, give them a competitive price along with reasons to buy from you, and they'll come back. Quote em MSRP or nothing, no matter what you try to give them, they won't come back.

Good stuff!

 

[Shaun Raines]

Thank you all for commenting on this topic. To Gilbert's point, I find it interesting that there's a similar debate among dealers regarding whether to display price or not on the dealership website. Here's a warning... if you're displaying price on your website and then dropping into memory loss mode when someone engages you about price, you will lose more than you'll win.

Seems to be common in everyone's comments that talented, genuine sales people are of superior value. If all you're offering is price, you won't be the top salesman in your store.

How many products would you buy that showed you a price online or on the shelf, but changed when you got serious about purchasing it? Blind purchases are almost exclusive to that which we know will not fluctuate wildly and that which are necessity (groceries, gas, beer, toothpaste, etc...).

I agree that one-size fits all is not the prescription that will cure every dealership. But, in my opinion the underlying lesson inside the price or no price debate is customer treatment and a sales approach that is relevant to consumers today. Any form of games and BS dished out on customers is simply the wrong way to do it. A good and decent human that relishes in manipulating the customer into the dealership so they get a shot to "take their head off" does not possess a properly functioning brain. No person with their head screwed on right enjoys being taken advantage of, intimidated or controlled by a car salesman. Do the right thing! Price or no price? If price would be important to you, then ask yourself how you'd appreciate being treated, what would make you consider a dealership or salesperson... once you figure that out, treat your customers that way. Thanks again for all the comments thus far.

With encouragement and hope,

Shaun

 

[[email protected]]

You got it right Shaun. The Golden Rule......RULES!

 

[Mat Koenig (blog)]

When it comes to pricing vehicles with a customer who isn't in front of you there seem to have always been the same two arguments:

1. Give them a price and they'll probably call your competition where they will get a lower price and never come see you. (Shared most commonly by the Joe Verde Group)

2. If you don't give a price they will HAVE to call your competition, which will lead them to get a price and they will never come see you. (Most commonly preached by Grant Cardone)

After working in two good size automotive groups who used these opposing philosophies I realize you can experience success in both environments.

Everyone who has been in the car business for more than five minutes knows that you will have a better chance of maintaining profit if you can build some rapport and investigate. The telephone and online chat offer the opportunity to build rapport to some degree, but being face to face is the best by far.

If everyone blogging were being honest I'm confident we would all say: "I'd rather present & demonstrate my product before quoting price so that I can get them emotionally engaged."

I would agree with anyone who thinks that.

The challenge with this line of thinking is that it isn't about what you or I would rather do before quoting price.

The consumer didn't contact you and say: "Mr. Dealer, how do you prefer to do business and handle price. I need to know so I can adjust the way I prefer to make my purchases - this way I can cater to your needs."

When they contact us by phone, email or chat we have to remember that our #1 goal is to get an appointment. The way to get an appointment is to help the customer feel like they will be getting what they want by dealing with you. (This isn't rocket science.)

As dealers, we must remember that it isn't all about us. It's all about the customer. There is a way to work with the customer in a professional manner, address their price concerns AND still have the opportunity to hold a fair and reasonable profit at the store.

Here are a few suggestions for handling prices with consumers in today's economy and every other economy for that matter.

1. Honest people have nothing to hide:
Nobody ever won an argument with a customer. If a customer asks for a price there is NO LOGICAL REASON to tell them no. As someone else mentioned earlier regarding new vehciles: "They can get the price from the OEM site..." They can also scroll a 1/4 inch and see your competitors prices on Cars.com, Autotrader.com and any other dot.com that has vehicles listed. If you tell them you won't give a price it appears that you have something to hide. If you have something to hide they will keep searching for the Dealer who doesn't.

2. It's not about YOUR process:
I know this one won't be popular in the community of people who make their living telling you to follow their process but this is simple truth.

Answer this question: Would you rather buy from someone who does things your way or their way? (Of course you said 'my way')

That being said - we need to be willing to help the customer see that we will do things their way; or help them see why going a certain direction is beneficial to THEM.

3. Choices + Skill = Profit:
There is a way to give the customer what they want while still keeping a fair margin for your dealership and best of all, this isn't difficult or even new for that matter.

Give them at least three options when they ask for a price.

Option 1 - Exactly what they asked for.
Option 2 - Something that costs less like a model down, a lease, or a certified pre-owned vehicle that will save them a good amount of money
Option 3 - Something with more options that costs a little more.

Offering options like these shows the consumer that you have nothing to hide. It also shows them that you're willing to save them money. Finally, the higher priced option shows that you're willing to help them with something they may like more and you aren't afraid to share that price as well.

Plus; since it's a numbers game there are common sense mathematics involved. If I give you three chances to say yes, I have better odds of selling you something.

Pricing vehicles today is no harder than it was 15 years ago. We still need to use great selling skills to help the customer realize that it's the best decision in the world to do business with us.

The internet is just another medium for us, as dealers, to communicate our message and prove that we can serve the customer better than any of our competitors.

Prove that you are the best person to do business with and people will still pay more to work with you than the guy down the street. All you have to do is look at what they paid for the car they are about to trade to understand that this philosophy is true.

Going online doesn't mean you have to put your sales skills on the sideline. It actually offers you more opportunity to prove that you are the best of the best!

Helping the best get better,
Mat Koenig
Sales Training Manager
Cars.com

 

[Stan Sher (blog)]

Too many times people think that if you give a price, it gives the customer a license to shop. Well they are already shopping so it makes no difference, they will still call other places and try to find a deal. The way to grab them and caputure them is by adding personality and starting to go for building a relationship. I would give a price to give them what they want and in exchange I will go for more out of them. Price will not be the only factor to sell these people a car. There are exceptions to the rule too. Ask the right questions, learn about your customer and let them tell you what makes them buy the car. Use it to your avantage and go for the close when you can. If you give a higher price, just do it to satisfy them. They will buy from whoever makes the experience better.