What is the Best Closing Technique?

Hmmmm--tough question. Perhaps the best closing technique is to always ask for the sale.

I remember one time many moons ago when I had a customer come on the lot and look at a pick up truck. I did a great meet and greet, asked a lot of questions about his wants and needs, built some great rapport in the process, went on a wonderful test drive where the customer absolutely seemed to love the truck and got back to the dealership. You know what he said to me?

"Thanks--you did a great job. I appreciate it." He then proceeded to walk away from me leaving me with my jaw hanging all the way to the ground. I was about to let him leave when I yelled something towards him.

"Jim--hold up." I walked towards him and said, "Jim--we just drove your perfect truck--why don't you buy it?"

Believe it or not, he stopped dead in his tracks and his eyes rolled up for a few seconds while he went over a few things in his head. Finally, he said, "You're right. I'll take it."

Wow--I almost let a buyer walk away from the lot. You know what else? I have never let that happen since.

I sold real estate for a year and if you think the car business is tough, try selling real estate. Here are some comparisons.

Customer doesn't like product.

Real Estate: You have to schedule another showing which means calling up the real estate office that has the listing, finding out when you can show it and setting up a new showing with your customer.

Cars: You just walk them to a different car.

Customer Agrees to Buy Product:

Real Estate: You have to get them a mortgage, get inspections, set up a closing and wait (30-60 days)

Cars: You run their credit, submit them over the internet, have an answer in 30 seconds, get the car cleaned, do the paperwork (30-60 minutes)

You get what I'm talking about? Well, when I sold real estate for my one year, I sold 1 property--a pizza parlor owned by a friend of mine. You know who bought it? A fellow real estate salesperson's brother. I listed one property that sold. After getting into the car business, I started reading books on how to sell and I tried to learn from the above average salespeople on the lot and you know what I learned?

I never asked for the sale! And when I say never, I mean NEVER! Wow--how many listings and sales did I miss?

I would go into a house and a family and I could tell that they loved it. I would then say something like, "Wow--nice house, isn't it?" and they would say yes. Then I would just stand there with my hands in my pocket and create an objection for them. I would say something like, "Why don't you go home and think about it and let me know?" and then I would never see them again.

Try this during your next sales process. Say something like, "It sounds like we found the perfect car for you. Are you going to title it in just one name or both names?" Only one of two things can then happen. They can tell you how many names they are going to title it in or they are going to give you an objection. Either way, you are closer to making a sale than you would have been by not asking for the sale.

The "Hamster" Close

This one is a little devious but it works! I read it in a book (the name fails me) about 10 years ago. I know it is on my bookshelf somewhere. If I find it, I'll post the name.

OK--here's what you do. You have a cute little hamster in a cage at your desk or even a goldfish in a bowl.

If you have a family, the first thing the kids are going to do is look at your "pet." They will probably ask something like, "What's his name?"

Here's what you say. "I haven't named him yet. What do you want to name him?"

"Scruffy!"

"Well, I'll tell you what. If your parents buy a car from me today, I'll let you take Scruffy home and keep him." Smile and wink at the parents and let the kids do all the closing for you!

The Difference Between an Objection, a Concern and an Excuse

I like to listen to other salespeople because 1 of 2 things always happen. I either learn what to say or do or I learn what not to say or do!

An example: I once was listening to a salesperson trying to sell a truck. He told the customer the price and the customer said, "That's high!"

The salesperson, without missing a beat said, "If I could knock off a $1000 would you take it?"

Whoa! The customer never said he wasn't taking the truck! He just said the price was high. Hell yeah it's high--so is a gallon of gas but we are definite be-backs at the gas pump and trucks cost a lot to produce.

Now, I honestly don't remember if that salesperson wound up selling the truck but I do know one thing--if he did, it was probably a $50 mini deal (we didn't get paid that well in Tennessee...) If he would have known the difference between an objection and a concern, then he would have at least made an honest commission of a few hundred dollars from selling the truck, not the insult that the average mini-deal is.

An objection is something that will keep someone from purchasing your product.
A concern is something that may or may not keep someone from purchasing your product.
An excuse is something your customer says to hide the real objection--that thing that is keeping him from buying your product.

Want a tip? If someone starts a sentence with "I'm not buying the truck because..." then they are about to lay an objection on you. For example, "I'm not buying the truck because the price is too high." If someone says, "The price is too high" then they haven't really objected--at least not yet--because they haven't told you that they aren't buying.

How do you handle an objection? I like to use these basic steps:

1) State it back to them to make sure you heard it correctly. Are you saying you're not going to buy the truck because it is too expensive?

2) I like to isolate it next: Besides the price being too high, is there anything else keeping you from buying the truck?

NOTE: I know you should never use the word "buy" you should use "own" but we're talking salesperson-to-salesperson right now and you know what I mean...

3) I try to re-phrase the objection to make it easier to overcome. By price, are you talking about the cost or payment?

4) I then try to overcome the objection. It sounds to me like you're on a budget like me and the rest of the world--am I right? If I could fiddle around with the numbers and maybe help out your budget, is there anything else keeping you from taking this truck home right now?"

It may not always work but you will increase your chances of selling a car if you use the steps above. In future posts, I will have specific objections and how to overcome them so please check back from time to time!

OK, Marv--what about concerns? Easy--you can either pretend you didn't hear them or you can agree with them.

Marv--that price is high. Here's how you do technique one...
Did you get that? I hope so.

Here's how to do technique 2. Marv--that price is high. (You) Yup--sure is. Hey, do you want to title it in just your name or do you want your wife on it also?

or even...

Yes, the price is high but isn't everything now-a-days? But when all the advancements in truck technology now-a-days and the 100,000 mile warranty, it will give you many years of use. So, do you want a cup of coffee while I get your paperwork started or a cold drink?

By the way--I will go into the closing techniques in later posts (the drink close and the title close) so make sure you come back once in a while!

Here's a fun one...You tell someone that their trade is worth $5000 and they want their payoff which is $9500. You: Jim, they appraised your car for $5000. Do you want a cold drink or a cup of coffee while...

(They butt-in): Man--that's low! (A concern)
(You): It may seem low but you have to understand that your car is 8 years old and has 87,000 miles on it and we have to fix that dent before we can sell it. What happened anyways?
(Them): I hit a deer. Marv--I need my payoff or I can't trade. (now an objection! Whoops!)
(You): Jim--a payoff has no bearing on what a car is worth. If you owed $100 dollars on your car, would you expect to only get a hundred bucks for it?
(Them): No...

I might even lay a little feel-felt-found on them! I know how you feel. I felt the same way the last time I traded--my car was worth $5000 and I owed $10,500 on it. I had to roll the extra $5500 into my lease but I found that after it was all set and done, I was happy with my new car and glad to get rid of the old one (True story by the way...)

OK--now for the big one--the evil excuse--probably the toughest one to handle because you don't want to pop out and call your customer a liar.

I need to check with my dog before I can buy.

First of all, don't ever come back with, "I'll tell you what--let me call my dog and see if I can sell you the car!" You will do nothing but piss off the customer and you will not sell them!

I play a lot of poker and at this point, I lay my cards on the table.

Mr. Customer, I have been selling cars for a long time and I have had a lot of people tell me that exact same thing and you know what I've learned? I've learned that sometimes people say that they need to check with their dog but that really they don't because something is bothering them and keeping them from buying a car from me. Sometimes it is the car itself, something I said or did or it is the price. May I ask if one of those things are the real reason you won't buy the car from me?

If they answer the question, you have the real objection and you can then isolate and overcome it.

I love when a customer pops an excuse on me--it tells me that they might really be interested in the car! I also love when they think they are being so slick and that I have never heard that excuse before. I need to sleep on it! or the ever popular, I never buy at the first place I stop at. Or how about one I heard a lot in the deep south, I need to talk to my banker first.

No matter what they say, use the technique--sometimes an excuse can be a real concern and sometimes people really want to talk to their dog first but if you can week out the ones who are just making excuses, you will sell more cars.

Please visit my website at www.CarSalesAssistant.com for the best follow-up software designed especially for car salespeople. Thanks and I look forward to sharing more techniques with you in the future.