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While I requested quote from your dealer website, I also sent it to......

Jeff Kershner

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I Felt like posting this. I know we ISM's get these emails requests all the time. I usually laugh at them and move on if I can't get the customer on the phone (in this case).

Now and then I "might" take a stab at them but it's rare. Keep in mind I'm not a high volume dealer, I'm located in a smaller town right out side of several big dog dealers. This is a HOT just released vehicle AND this customer is not in my market.

How do you guys handle these requests? And be real!!

Original Lead (using John Doe rather the customers actual name)

PROSPECT INFORMATION
First Name: John
Last Name: Doe
Email: [email protected]
Day Phone: XXX-XXX-XXXX
VEHICLE WANTED INFORMATION
Year: 2008
Make: Mercedes-Benz
Model: C350 Sport Sedan
CUSTOMER COMMENT INFORMATION

Comments: I am Interested in C-350:2008 Model. These are my specification. M.S.R.P.* $37,275 Exterior Color (Metallic paint is optional, resulting in an additional price of $710) Obsidian Black Metallic $710 Interior Color Black Leather1 $1,550 Wood Trims Black Birdseye Maple $0 Options Tele Aid Security and Communications System $650 Packages Multimedia Package $2,950 Gas Guzzler Tax $0 Total $43,135 Please provide me with your best price quote. No Language Preference selected. Address provided is invalid.
Their response to my auto-response

Hi Jeff,

Thanks for the prompt response. I am interested in buying the new 2008 C350 with the specification that I have requested. I am waiting for the best price quote that you can offer. Please feel free to contact me at this account, or my cell.

Thank you
My response

John Doe,

I have to ask, how much of a discount are you looking for? These are are flying off the shelves and most people are not even asking for a discount.

-Jeff
Their response

Jeff

Thank you for replying back. Just do the best you can. While I requested quote from the website, I also sent it 3 other dealers. I'm waiting for their quotes. You can exclude the security aid that I had added.

John Doe
Mine

Dear John Doe,

No thanks. I have no need to get into a bidding war with other dealers. I'm sure you understand.

Good luck with your purchase. I know you will love the new C-Class.

-Jeff
I guess the consumer feels as if they are going to get their best deal this way. Who knows, they might. I'm sure one of those dealers will whore out a car that we should be allowed to make some money on (at least for 3-4 months).

How do you guys handle these requests? Be real!!
 
When I was an ISM, I would check the local competitors to see what they had in stock before proceeding. For hot vehicles (there weren't many Ford, Lincoln, Mercs that were "hot", but there were a few from time to time), if I had it and they didn't, I would stand firm. If the competition had one, too, my response was very close to yours.

"Hi John Doe, We do have a brand new Edge in stock that matches your specs exactly. Currently, we are not discounting them, as they are selling very well without discounts. If you have a trade in, I can still save you money overall. We generally give more than the competition, so it would be worth your while to stop by and see me. Will you be able to stop by this afternoon, or will Saturday morning be better?"

We give enough discounts on regular vehicles. When it's a hot one, why give it away?
 
HI Jeff,

I get this kind of request often. Leads have been off by 30% this month so not many lately.

If I have what the client needs instock or coming. I will sned them a price discounted by $500 as long as they have confirmed the color and options as your client did in the response emails.

I have found that as long as you have exactly what they are looking for and you can provide the service they are asking for in a timely manner, often times you can earn the business simply because you have provided quick service and a price. It may be the only price quote they receive and the only response.
I too prefer not getting in to a bidding war and certainly understand your thought process on that subject.
I also understand my boss wants every deal he can get right now.
 
There are those who enjoy the shopping and negotiating game and we run into them in every business, it is actually fun if you make the time for it. Every dollar saved is 10 dollars earned is an old Chinese saying.

Having a competitive edge means possessing an advantage over your competition. This does not take the luck of the Irish, but rather some solid strategic planning. Before you can accurately identify your competition, it's crucial to first define and analyze your target market. What are you selling and to whom?

Make a list of those companies trying to do the same. What are their strengths and weaknesses? What are their strategies and goals? How do they draw in customers? What makes them stand out from the rest?

If you don't have this vital information, what are we doing in business? We shouldn't live in fear of our competition, we must find out who they are and what makes them attractive to their clients, why do people shop with them? Assessing competitors openly and honestly will play a key role in helping develop a competitive edge.

If we only compete on price than we better be the low cost dealer otherwise we lose.

A winning company is not successful by accident, though often it may seem that way. A closer look usually reveals that most have sized up their target markets and zeroed in on a unique approach to meet their customers' needs, values and expectations.

Through important considerations like location, product, services and product features, they have somehow found a fresh spin, a new way to offer service that many clients will pay more for the quality and piece of mind. Most people still like to work with a professional organization. The clients only looking for the lowest price you may not want; leave them to the bottom feeders.
 
There are 2 kinds of cars.

#1). Too much Supply (buyers market)
#2). Not Enough Supply (sellers market)

Jeff,
You're in class #2, BUT, you gotta hide your pride! I'd venture to bet that many of the other sellers are thinking like you are and will "opt out" of the bidding war.

IMO, When you got a #2 car, you go "old school" on the shopper. Meet his demands with a warm professional inviting response (which you're good at), but, take charge with YOUR DEMANDS.

I'll give it a go...

=========================

Dear John Doe,

Clearly you've been doing your due diligence. As you well know, this exciting new C350 is in limited supply and they'll take months to order. Requests are coming in & If you're interested in purchasing one soon, we should talk over the phone ASAP.

The new C350 we have in inventory is truely a sight to see. The options package has nearly everything you're interested in and the color complements the Mercedes owner as well. Should you stop in for a visit, you'll see this C350 has people circling around it all day!

Mr Doe, I am eager to sell you this exciting new Mercedes, but, because it's so unique and demand is so high, we'll only take offers in person.

I hope you appreciate my honesty, I hope to earn your business soon!

Warmest Regards,
Jeff K.

======================

How'd I do?
Joe
 
Hi,

I just ran into a customer like this last week. He wants a 2008 FJ Cruiser; a VERY hot vehicle. We went back and forth on options and I had to add several accessories to suit his needs. The MSRP for the vehicle is $32949.

Then I get the e-mail..."what do you think is a FAIR price for the vehicle?"

Here is the reply I sent him:

Hi John Doe,

Thank you for your reply.

For a fair price for the FJ Cruiser, Kelly Blue Book defines a fair markup for new vehicles at between 6-8%.

We would pay a realtor 5.4% to sell a home, and we tip a waiter 15-20%. Obviously, a new FJ Cruiser is a lot less than a house, and considerably more than a meal, so the great news is that we are right in line with what is considered to be a fair markup for a brand new FJ Cruiser.

We are happy to share with you all of the pricing information for the FJ Cruiser when you come in to reserve your new FJ.

I look forward to seeing you soon.

Teresa
~End Quote~

I too see no reason to whore out Hot vehicles just so someone can tell all their friends that they bent me over my desk and got a great deal. Then I have to give all of the referrals they send a similar deal. Especially when he had already worked with two other Toyota dealers in town and they could not find him a suitable FJ. This would be a custom order; and he just chirps about a discount.
 
Jeff, you can't blame a customer for doing something you didn't tell him he couldn't do... Through what medium did this customer come to submit the lead? What was the brand / experience / why buy from us / how we do business message that the consumer received prior to submitting what you received?

Is it the consumer's fault if he merely followed the technological bouncing ball he was provided, yet that wasn't the behavior that you wanted ("Hi! I'm online! Here's all my contact info! Can you please contact me so that I can arrange to come in to your dealership!)"? Is that really what you are expecting or is it only what you want? Would you do that if you were a consumer?

Is an online consumer under some sort of obligation to come in and go through a traditional sales process? Aren't most online consumers trying to engage in a different car buying process?

But I'm not here to criticise Jeff or anyone else. I do understand where the frustration of expended effort with no results comes from. Since this is a learning forum this would be my response...

Joe,

I will happily provide you with a price on the vehicle you have requested, but need to make sure I understand several facets of your vehicle buying decision first. I need this so that the information I provide you is 100% accurate and is appropriate to your purpose and needs.

Specifically, what is your estimated timeframe for making a purchase? At the moment the vehicle you have requested is brand new, in extremely short supply and is selling for full Manufacturer's Suggested Retail Price (MSRP). As with all recently released vehicles, that never lasts forever so your estimated timing here is critical.

Will you be financing (whether by loan or lease) your purchase?

Do you have a trade in? If so what is it? Do you owe anything against it? Have you had a professional appraisal and equity analysis performed already?

Are you familiar with our dealership's customers for life program and what that could mean to you?

Are you familiar with our dealership's Internet customer perks program available shoud you come in for a free purchase consultation?

Have you owned a Mercedes-Benz vehicle before?

Do you have any special uses for the vehicle that you would like to make us aware of? We never push, but if asked we are all trained to the highest level on the various options available on our vehicles. Frequently we get questions and asked for opinions as to how certain options are used, which retain their value best, which repeat customers rave about and which they don't.

Are you absolutely fixed on every option that you have requested? Expanding our search in terms of your flexibility will increase the range of vehicles that are likely to be available for you to consider?

And here is a thought that I always feel remiss if I do not ask... The purchase phase of your Mercedes experience is likely drawing to an end. After your purchase, you will presumably own you vehicle for a period of years. Have you thought about how your choice in dealership for your vehicle purchase can continue to be of benefit through your ownership phase. At Mercedes-Benz of Hagerstown, we have special programs to review with you that are only available to those who have purchased from our dealership. We not only wany you to be comfortable with your purchase decision, but with your entire ownership experience and have a number of programs to make sure that we deliver. Are you familiar with them?

Lastly, we also make available a number of what I call "Peace of Mind" services to make your ownership of your new Mercedes everything that you want it to be. Extended Service Contracts, Prepaid Maintenance, GAP protection, Credit, Accident and Life insurance are the ones our consumers seem to prefer.

I know this is a lot, which is why I would like to suggest an in-dealership visit to review all of your purchase considerations, make sure I understand them completely and so I can give you all of the answers you are going to need. Until I have those answers, I don't feel it would be responsible of me to quote you anything other than MSRP. I also know I can usually do a little bit better for you if you are here and my manager sees that you are ready to buy.

If that is comfortable, please email me a few times when you would be available to come in for the consultation and call me in advance to make sure you have everything with you that you will need.

My personal best,

Jeff

Then go back and figure out how to change your technology (Internet lead submission forms) to give you a different result.

Don't have powerful marketing messages like the above to communicate to your consumers around:

1) Why Buy From Us?
2) Why Come In?
3) Buy here, service here perks?

Whose fault is that?

I guarantee you that this person will single you out from the pack of non-responses and "here's your price" responses they do receive.

People buy from people they like. They buy emotionally and justify their decisions intellectually. If this consumers comes back just asking for price again, quote them MSRP and let them go. They suck as a consumer, just as they did in the days before the Internet.

Consumers hide behind the Internet, data and technology because they are defending themselves against salespeople who want to push them in to things they don't want to do. People like to buy, but not be sold. You stir emotions when you adjust EVERYTHING you do to nurture, understand and listen. The only person who should close a consumer is the consumer. You are just a tour guide.

The Internet is a different medium, but basic human and sales psychology still applies.

My company has the first shopping cart based ecommerce system for dealers to add on to their website. The same principle applies there. The need to transfer this human and sales phychology for maximum effectiveness is why our workflow and screens deliver a dealer specific brand message designed to promote comfort, nurture and educate. If you want the emphasis in your technology and process to not be on price, it is your responsibility to make sure it happens. There is no point lamenting when consumers do what you didn't tell them they couldn't do.

Good selling.
 
Internet 101...

Purpose of the email? Get the phone call.

Purpose of the phone call? Set the appointment.

You know the next step... And of course to build rapport throughout this process.

Jeff, your customer wrote that you could contact him through his account or cell. Just me, I would have tried to communicate soley through phone from there on out.

Only in the event the customer specifically requests to be contacted via email, would I then evaluate the situation on whether to 'show my hand'. Vehicle- rare or common, Distance- near or far, Email address- freebie (yahoo, hotmail, ect) or tied to a paid home/business account.

Saturday I sold a new Tahoe to a GM BuyPower customer that I used this strategy with that lived 3 Chevy dealerships inbetween and 40 miles away. Once on the phone and hearing his distress about pricing I knew this was the one opportunity to lay it down.

He drove in at noon and left at 2pm in his new Tahoe. Pricing above invoice.

How did I do?
 
Brian H.,
You may want to re-read Jeff K's. initial post. The topic here is how to reply to a "nickle-dime grinder" who's interested in a unit that is in high demand and in very short supply.

I sense by the intensity of your reply that sales for your platform are... less than you expected. May I suggest that you hire a sales force to sell your "no sales rep needed" platform (now that's funny!).

Joe