"How High is Too High"

“How High is Too High”

Margins are not what they used to be and if it is true that customers spend 30 hours on the internet before they come to the store - They Know It!

So why are all cars not sold at Full Boat? How is it that we are still negotiating like we have the 20% margins from the 1970’s. I understand there are no absolutes in sales and that every month you have winner and loser deals, but should there/could there be more winners? What would moving your gross average up $500 per car mean to you on a yearly basis? Are you worth it? Do you deserve it?

I am going to over simplify this (because I hate typing) to get to the point.

• Some customers may like the sport of negotiating. Before they came to the store they were at the mall trying to get $50 bucks off on a new pair of shoes. This customer is going to negotiate.

• Some deals your managers need to back into price to make the terms work for the customer and the bank. Your job is to get it as high as you can so the manager has room to work and then we can exceed exceptions and give the customer the good news later.

• Some deals you teach the customer to negotiate.

I said last week that the delivery of the numbers has to be as if this is not negotiable. As if 100 customers come in today to buy this same car, they are all getting the same price. You have to sell this just like you sold the car.

Now you need to be careful on how you answer comments or questions. Just popping off can set you on the path of negotiation and the dreaded mini deal, but maybe that does not have to be true.

”How High Is Too High’

You do not have to cut price 1st!. if a customer says “too high”, it does not mean you need to say “How High is too high?” or “What were you thinking?”. If you do say this you are opening the door to negotiations and we are off to the races - on the way down.

”Why do you say that?” in place of “how high is too high”. Make the customer explain/defend why they said it. Their answer will give you room to move on either a value argument, affordable terms argument (Reduce to the absurd) or give you a chance to address any misunderstandings.

”Is this the best you can do” = Yes. I should not have to explain this one.

Only go to price after two or three “No’s”. If you made two or three arguments to justify the value of your price and the customer is still resolute, you need to address price. The point is use the price tool last! Then you need to justify every price drop. You go fast and easy on the drops and the customer will think you can do this All Day... Give the customer a good reason for the drop.

Your attitude is contagious. So have the attitude that you are worth what your asking the customer to pay. After all, you are the most important person in the entire industry. It does not matter what the manufacturer comes up with - the moment of truth is going to be what happens when YOU go out and sell one car, one customer at a time.

Just like your mother told you - You are special! You come to work every day with the confidence to get paid exactly what you are worth. I respect that... Decide you are worth more and ask for it. Once you decide and you believe it - the close becomes instinctive.

Remember - You don’t have to ask - Raises are effective when you are...