One of the most useful skills you can learn is how to negotiate effectively. Here are a couple of quick tips (since it's late) on how to negotiate.
1) Do what my 5 year old daughter does. Never give up! "I want a Wii." Sorry, Melissa--it's too much. "I really want a Wii." Maybe for your birthday. "Daddy--if you love me, you'll get me a Wii." Guess what? I just played a game of "Super Mario Galaxy" on my daughter's new Wii. (Great game, by the way.) In the car sales world--"Your payment is $400." I want to be at $300. "I'm sorry, but your payment is $400." How about $350? "I wish but it's $400." Ok.
2) Change the offer (very powerful.)
You: "Mr Customer, your payment is going to be $400."
Customer: "I want to be at $350."
You: "I'll check with my manager. (leave and come back) You know what? They made a mistake--they used the wrong rebate and your payment is really going to be $427"
Customer: "But you told me $400! If it's not $400, I'm walking." You get the picture--very powerful stuff.
3) Use the "up-to" hand motion.
Customer: "I'll pay $350 per month."
You (motioning your hand in an raising manner): "Up to...?"
Customer: "Up to $375"
You (raising hand higher): "No more than...?"
Customer: "No more than $390"
You (final raise): "But if you found the perfect car and it was $400, you wouldn't let $0.30 per day keep you from your perfect car, would you?"
4) Be prepared to walk away--and mean it!
You: "Mr. Customer, this car is gonna run you $23,900"
Customer: "I'll only pay $20,000"
You: "Unfortunately, this is the hottest car out there and that's what they are selling for. But I would understand if you don't want to pay that so have a nice day."
Customer: "Uh--what about $22,000?"
5) "Here's what I can do for you..." I work with some people who want us to get an offer out of the customer before we work figures. You know what? I disagree... Lets say you walked into Lowe's and wanted to buy a dishwasher and you asked the sales dude how much it is and he said, "Make me an offer what you would pay today and I'll take it to my manager." You would...
a) Either make a low ball offer
b) Be afraid to make an offer at the chance of offering too much
c) Get pissed at the high pressure tactic and buy somewhere else
d) Say, "I'm just looking."
So--here's what I would do.
Customer: "How much is this car?"
You: "It's $23,900 but here's what I can do for you today. I have a contest I'm trying to win so I'll sell it to you right now for $23,250 and if anyone asks, you're my cousin and using my discount, OK?"
Last but not least (at least in this article...)
6) Hit them high and negotiate from there. It's a negotiation game so hit them at full sticker (at least) and get them to make an offer after you "peal them from the ceiling" unless of course the stars align and they hook up! (it happens about 10% of the time by the way...)
7) Indifference: If you act like it is no big deal to sell the customer a car, they will want it more. I remember a billion times where it was time for me to go home and a customer walks in. "Are you still open?" I try everything in my power to get them not to buy so I can go home broke and they buy. Hmmm...
8) "I'm not sure if this car is available. I think someone already bought it...let me check." Remember the Wii I talked about? I already have a powerhouse computer and an XBox 360 so I really had no intention of ever buying a Wii but when they told me I couldn't have one--I wanted it! I did the same thing when I bought my house. The real estate lady told me they had 2 other people about to make offers so I paid almost full sticker and bought my $130,000 house (that is probably only worth $20,000 right now--freaking Michigan economy!)
Hey--"Family Guy" is on so goon night and good luck selling!
Marv
Showing posts with label negotiation techniques. Show all posts
Showing posts with label negotiation techniques. Show all posts
Monday, March 31, 2008
Monday, February 18, 2008
How to Treat a Customer
How do you like to be treated? Yeah--me too.
OK--here are some tidbits on how to treat customers. I'm sure a lot of this is old stuff to you but sometimes we all need to be reminded.
1) Never ever argue with a customer. There is the old adage that the "customer is always right." You know what? Even if they aren't--pretend that they are--if you are married, you'll know what I'm talking about.
2) Never back yourself into a corner. Don't ever tell a customer that you are on your bottom dollar unless you are because if you have to lower the price later, you will lose credibility real fast.
3) Don't try severe pressure on a customer UNLESS it is a last resort. Subtle pressure and building value works best.
4) Tell a customer that it is "alright" to purchase a car. They work hard for their money and they deserve the new car, don't they? Sometimes just telling them that it is OK to buy a car is enough to push them over the edge of making a decision.
5) If they say they are going to buy right now, ask again just to be sure. "Now--just so I'm clear--if I get this worked out--you are taking the car right now, right?" (Always use "right now" instead of "today." Today ends a midnight and there are a lot of other dealerships between us and midnight if you get my drift.
6) Never think you know everything because we don't!
7) Find something that you like about your customer and tell them that you like it. It could be their car, how polite their kids are, they choice in car, etc.
8) I once went to a computer store and told the guy working there that I was there to look at a specific model. The salesperson said, "Great choice!" Whether it was or not, just him telling me that I made a great choice put that guy high in my book and I bought.
9) Find common ground and build rapport.
10) Lets say you have a customer who has false information and is going to shop you on it. For example, they have been low-balled at another dealership and you know for a fact that they have bad info. Lets say you try to discredit the info but your customer is convinced that the person had given them good info (hope I haven't lost you --I think I lost myself!) Well, what I'm trying to say is this: if your customer leaves and then realizes that you were right and that they were wrong, there is a great chance that they will never come back to your dealership because they want to "save face" and not be made to look like they were wrong. Here's what I like to do. I like to say something like, "Bill, do me a favor. I've had this happen before. I had customers get what turned out to be bad information from another salesperson. And you know what happens? Sometimes they still buy from the salesperson who gave them the bad information because they don't want to come back to me and admit that they were misled. Do me a favor--if it does turn out that they gave you bad information, please don't feel that there is any obligation to do business with them and please don't feel like I'm going to rub it in or anything. I just have been doing this for a long time and know how other salespeople can be--I know the tricks they pull to keep you from buying anywhere else."
11) I know there is an election coming up. Don't talk politics to customers! If they ask you say something like, "I haven't given it much thought. I've been too busy trying to sell cars to worry about it."
12) If you get someone who is a veteran, thank them for their service!
13) If you win the battle, you might lose the war. Did I already mention not to argue with customers?
14) Try to sell the customer the car they want. If they ask what car they should buy, PICK THE LEAST EXPENSIVE CAR WITH THE STUFF THEY WANT! If someone wants to be at $300 per month, don't show them a $50,000 vehicle though. Show them the best car in their price range or just above it (you can raise people a little, can't you?)
15) Give your customer a way to win.
16) Lets say someone offers you a great deal right off the bat. Do not hook right up--if you do, they may have the bit of doubt in their heads and they may think they left money on the table. I have a friend of mine today who went and looked at new model homes. They had one he kinda liked for $239,000 but it had none of the cool things he wanted--9' ceilings, granite counter-tops, the size he wanted, etc. So, he priced out everything he and his wife wanted and it came out to be $289,000. He offered $249,000 and the salesperson hooked right up and said they would do it. My friend expected them to counter-offer and they didn't. You know what? It sounds like he got a great deal but you know what he is thinking? He is thinking that he left money on the table and I think he is right. Now--while they are building the house--he is always going to have this in the back of his mind..."Did I get the best deal?"
Well, it's getting late--there are a million more tips but I'm going to bed.
OK--here are some tidbits on how to treat customers. I'm sure a lot of this is old stuff to you but sometimes we all need to be reminded.
1) Never ever argue with a customer. There is the old adage that the "customer is always right." You know what? Even if they aren't--pretend that they are--if you are married, you'll know what I'm talking about.
2) Never back yourself into a corner. Don't ever tell a customer that you are on your bottom dollar unless you are because if you have to lower the price later, you will lose credibility real fast.
3) Don't try severe pressure on a customer UNLESS it is a last resort. Subtle pressure and building value works best.
4) Tell a customer that it is "alright" to purchase a car. They work hard for their money and they deserve the new car, don't they? Sometimes just telling them that it is OK to buy a car is enough to push them over the edge of making a decision.
5) If they say they are going to buy right now, ask again just to be sure. "Now--just so I'm clear--if I get this worked out--you are taking the car right now, right?" (Always use "right now" instead of "today." Today ends a midnight and there are a lot of other dealerships between us and midnight if you get my drift.
6) Never think you know everything because we don't!
7) Find something that you like about your customer and tell them that you like it. It could be their car, how polite their kids are, they choice in car, etc.
8) I once went to a computer store and told the guy working there that I was there to look at a specific model. The salesperson said, "Great choice!" Whether it was or not, just him telling me that I made a great choice put that guy high in my book and I bought.
9) Find common ground and build rapport.
10) Lets say you have a customer who has false information and is going to shop you on it. For example, they have been low-balled at another dealership and you know for a fact that they have bad info. Lets say you try to discredit the info but your customer is convinced that the person had given them good info (hope I haven't lost you --I think I lost myself!) Well, what I'm trying to say is this: if your customer leaves and then realizes that you were right and that they were wrong, there is a great chance that they will never come back to your dealership because they want to "save face" and not be made to look like they were wrong. Here's what I like to do. I like to say something like, "Bill, do me a favor. I've had this happen before. I had customers get what turned out to be bad information from another salesperson. And you know what happens? Sometimes they still buy from the salesperson who gave them the bad information because they don't want to come back to me and admit that they were misled. Do me a favor--if it does turn out that they gave you bad information, please don't feel that there is any obligation to do business with them and please don't feel like I'm going to rub it in or anything. I just have been doing this for a long time and know how other salespeople can be--I know the tricks they pull to keep you from buying anywhere else."
11) I know there is an election coming up. Don't talk politics to customers! If they ask you say something like, "I haven't given it much thought. I've been too busy trying to sell cars to worry about it."
12) If you get someone who is a veteran, thank them for their service!
13) If you win the battle, you might lose the war. Did I already mention not to argue with customers?
14) Try to sell the customer the car they want. If they ask what car they should buy, PICK THE LEAST EXPENSIVE CAR WITH THE STUFF THEY WANT! If someone wants to be at $300 per month, don't show them a $50,000 vehicle though. Show them the best car in their price range or just above it (you can raise people a little, can't you?)
15) Give your customer a way to win.
16) Lets say someone offers you a great deal right off the bat. Do not hook right up--if you do, they may have the bit of doubt in their heads and they may think they left money on the table. I have a friend of mine today who went and looked at new model homes. They had one he kinda liked for $239,000 but it had none of the cool things he wanted--9' ceilings, granite counter-tops, the size he wanted, etc. So, he priced out everything he and his wife wanted and it came out to be $289,000. He offered $249,000 and the salesperson hooked right up and said they would do it. My friend expected them to counter-offer and they didn't. You know what? It sounds like he got a great deal but you know what he is thinking? He is thinking that he left money on the table and I think he is right. Now--while they are building the house--he is always going to have this in the back of his mind..."Did I get the best deal?"
Well, it's getting late--there are a million more tips but I'm going to bed.
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