Thoughts on a big-city test for no-haggle pricing?

[joe.pistell]

... our integrity is what we do is worth more than the couple hundred we were apart.

Hahaha a one week integrity test. Love it JL. I bet >80% of the managers cave by day 3, then the reps go back to biz as usual.

 

[ddavis]

I do too! Payplans dont have to be a % of gross unless you are one of the "We have always done it this way group" We paid on number of units once you hit 15 you were being paid very well, we paid on CSI if you were above zone you got 110% of your pay but if you were below you got 90%. We also had monthly, Qtr, and yearly bonuses.

You use pay plans to get salespeople to focus on the areas that are important to you. Obviously, profit is first. We paid on the back, lease conversions, under allowances, CSI and volume.

"We have always done it this way group"? I was an early adopter to the internet. Everything I learned was through trial and error. Some things worked and others didn't.

Dealerships fall into three groups, the market leaders, the average dealer and the sub-par dealerships. By far, the smallest group is the market leader. People and culture set them apart. These people know what they are doing and are willing to put in the work. They don't accept mediocrity and change is a constant.

I love salespeople and my greatest joy was helping them be successful. I have no time for clerks.

 

[ddavis]

Hahaha a one week integrity test. Love it JL. I bet >80% of the managers cave by day 3, then the reps go back to biz as usual.

The biggest liars, you will ever meet in a dealership, didn't come through the employee entrance.

 

[ed.brooks]

Thats the key to "One Price" you have to let them leave and not follow or call and give them more off. You have to be confident in your numbers. We used to have customers walk to their car sit in it expecting us to come out, they would then get out and come back inside and say "You are serious you are gonna let me walk over XX amount of dollars" Yes Mr customers our integrity is what we do is worth more than the couple hundred we were apart.

I think the real key to a one price strategy (or any reduced negotiation strategy for that matter) is to head off a negotiation before it even starts. You have to explain the store's philosophy to the customer before they say, "but, can you do any better". You have to explain how and why you priced this vehicle the way you did and justify the asking price (preferably using documentation).

That takes training, experience, and a shift in the dealership's culture - things that are difficult to accomplish in a week's time.

 

[ddavis]

I think the real key to a one price strategy (or any reduced negotiation strategy for that matter) is to head off a negotiation before it even starts. You have to explain the store's philosophy to the customer before they say, "but, can you do any better". You have to explain how and why you priced this vehicle the way you did and justify the asking price (preferably using documentation).

That takes training, experience, and a shift in the dealership's culture - things that are difficult to accomplish in a week's time.

One of my oldest friends is talking to a customer, that he has sold a bunch of vehicles, "I need you to come in and buy this car, I have a mortgage payment due".

 

[joe.pistell]

The biggest liars, you will ever meet in a dealership, didn't come through the employee entrance.

haha, NAILED IT Doug.


Post from 2009:
Evil Dealers and the Slaughter of the Innocents

...I listen to the calls, the emails, the dialogue on the floor and at the desks. The consumer expects and wants a NEGOTIATED discount to purchase a vehicle. Many (but not all) shoppers are out for blood and will “bend the truth” (aka lie cheat and steal) to improve their position.


It didn’t take me long to realize the public perception of the evil dealer and the slaughter of the innocent buyer was totally an Urban Legend. The Internet has blown that into million pixels and has arguably tipped the scales in the buyers favor.


But… the legend persists, we’ve see it all the time. Bloggers and journalists writing about the Evil Car Dealer and how they want to eat your children.

I am here to tell the world that BUYERS ARE NOT INNOCENT LITTLE LAMBS, THEY ARE GRINDERS

 

[ddavis]

Thats the key to "One Price" you have to let them leave and not follow or call and give them more off.

Oh, HELL NO! Nobody, that is willing and able to buy is leaving my store without a car. The average customer shops 1.2 stores before purchasing (Right Joe?). They are going to buy at the next store and maybe pay more. They might as well call home, "Agnus, I'm going to be awhile". They are going to meet every Manager in the store before they leave. If they do leave, they are never coming back.

 

[joe.pistell]

Oh, HELL NO! Nobody, that is willing and able to buy is leaving my store without a car.

It's still is a buyers market (and always will be... as long as the boss is paid on commission .

 

[joe.pistell]

Oh, HELL NO! Nobody, that is willing and able to buy is leaving my store without a car.

Think the manager at a Tesla store would ever do this?

Not.

 

[ddavis]

Think the manager at a Tesla store would ever do this?

Not.

I seriously doubt that Tesla had me in mind when they set up the model. They sell a few a month, we sold hundreds.