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Do you lack focus or direction?

Do you know where your next meal is coming from? You know it is coming from out there on the lot somewhere, but do you leave it to chance that a customer or two will come in tomorrow to ensure your meal? Are you a lot like the buzzard that knows his next meal is coming from down there in the trees somewhere, but lacks direction and flies aimlessly in circles until it spots its meal? You know that your next sale is coming from somewhere out there on the sales lot, but until it comes, do you simply pace around in circles waiting for it to come walking in the door? Is your destination somewhat unpredictable? If that describes you, perhaps you could take a lesson from the squirrel. Even when he’s had his fill, the squirrel continues to search for food to stash away for tomorrow when his pickings might be more slim. As a car salesperson, you know that when traffic through your lot is slow, the potential for sales (i.e., income, your next meal) is also slow. Take advantage of the busy traffic days; don’t stop pursuing customers, just because you have sold what you have set as your personal quota for the week. Next week might be slow with fewer prospects. Prepare for how you’ll eat tomorrow.

The Meanings of Down Payments

Why is a sizable down payment important? A sizable down payment contributes to the likelihood that you will close the deal. A sizable down payment contributes to the profit margin. The best way to get a down payment is to give your customer a number. For example, you might speculate that most banks and lending institutions generally require at least 20 percent down. This gives the buyer a number to use as a guideline. Is the customer willing to put down that much? Is the customer thinking about a larger down payment? If a customer says his or her bank doesn’t require money down, tell the person, “Well, we might have a bank doing the same thing; let me ask my business manager.” If you find that your dealership offers the same option, tell the customer that and then ask, “However, you are interested in saving money aren’t you?” Remind the buyer that although he or she might have the option of not making a down payment, it probably isn’t in his or her best interests. Explain that the more money the customer puts down, the less money he or she will need to borrow; that translates into a savings on interest payments. Then ask again, “With that in mind, do you think you would like to put some money down?” If the answer is still no, let it rest for now. At the end of the negotiating process, get back to the matter of the down payment. Ask how the customer pays his or her taxes, such as income tax. Most people hate paying taxes and hate paying interest on money borrowed to pay taxes even more. If you can get them to pay their taxes in cash, you may say with pride, “Jack you have just gotten your down payment.”

The Power of Getting a Signed Commitment

When you are at the point where you and the customer are ready to start negotiating, you should always get a signed commitment. A signature means that the customer agrees to buy the vehicle at some price. No backing out! The issue for you becomes one of profit, rather than making or losing a sale.

As the negotiation process continues, the salesperson must get a signed commitment for each counter offer. For example, you have a commitment for $15,000, and you need to get $18,000. You are no longer trying to get the whole $18,000; you are trying to get an additional $3,000. Now that you have a commitment for $250 a month, and you need $325 a month, that’s only an additional $75 per month—less than a quarter of what you needed when you started. One way to make up the difference is with a larger down payment.

Sales Technique Can Make or Break a Deal

Have you given much thought to the pace at which you sell cars? When the typical customers come in to buy a car, they are generally fearful that the salesperson will take advantage of them, lie to them, and/or waste their time. How do they deal with this fear? Do they want to deal with a salesperson that goes slow so they can understand everything? Are they in a hurry, almost in a panic, trying to get out of the dealership as fast as they can?

Given these two buyers, how can you adjust your pace to ensure a sale? One way is by interjecting meaningful conversation into the process. For instance, you are selling some customers a car and you notice they are becoming very nervous about buying a car; they are starting to act as if they are going to leave. You need to make them feel more comfortable or you risk losing the sale. It’s time to slow things down by changing the subject. Depending on what stage of the sale you are in, this might be the perfect time to ask more qualifying questions. Another approach is to get the buyers to take mental ownership: "Where are you going on your next vacation?"

Don’t tell them everything you know

Product knowledge is getting better all the time. The factories are getting involved in product training and the awareness of the importance of product knowledge is on the rise. Don’t let all this newfound knowledge cost you sales. Going out and rattling off a seemingly endless list of features can be just as bad, if not worse, than not knowing your product.

Keep in mind that when you are talking to a customer you are talking to an individual. An individual with individual wants and needs. Be sure to qualify thoroughly to uncover what these wants and needs are. When you do your presentation be sure that you do it based on the individual customer that you are talking to at the time.

From time to time throughout your walk around presentation be sure to confirm that the features you are talking about are the features that are important to your customer. For example, “Mr. Customer, notice the folding rear seat. By simply pulling two pins the seat folds forward, and doubles your cargo space. This gives you both four passenger seating or tremendous cargo space, allowing you to carry more of the things that you want to carry! (Confirmation) That is the type of utility that you are looking for in a new car isn’t it?”

A quiz about the vehicles on your lot

I wrote in my last blog about product knowledge being only half the battle in sales. Take this quiz to see how much you really know about the vehicles on your lot.

1. What makes and models do you offer?
2. What optional equipment is available on those makes and models?
3. What safety equipment comes standard on those makes and models?
4. What equipment distinguishes one model from another?
5. What engines and transmissions are available, and what gas mileage does each vehicle get with that engine and transmission combination?
6. What wheels and tire sizes come on the vehicles that you have, and what effect does tire size and wheel size have on the way a vehicle rides and drives?
7. What are the wheelbases on the various models you offer?

Product knowledge is only half of the battle in sales

The other half of the battle is knowing how the to use that knowledge. For example, a man is looking for a business car and asks if a particular vehicle has air conditioning. You respond with an enthusiastic “Yes!” But what you don’t know is that this man is turned off by that information. He has been paying for air conditioning for years, but has never used it. He develops a headache when he goes in and out of air conditioning all day.

On one hand, you are wise to know your product very well. On the other hand, when your customers ask questions, you are wise to find out why the person is interested in that particular feature. Once you know your customers as well as you know your products, you will be able to coordinate a car with a buyer.

On my next post I'll give you a quiz to help you see how much you really know about the vehicles on your lot.

Phone Calls do Not Have to be Aggravating

Do you look at a phone up as an opportunity to sell a car? If you do not, you may be missing some deals. At first glance that last statement seems odd but when you think about it, the notion really isn’t because you see a phone up only as an opportunity to sell an appointment. The next time you receive a phone up, take control by asking and answering questions. When the customer asks a question, such as “Do you have a 1994 Camaro in stock?,” your response might be “I will check our inventory. Are you looking specifically for a 1994 Camaro or just some type of the sports car?” No matter what the customer replies, you can follow up by asking the acceptability of a stick shift or automatic, six cylinder or V8, lighter or darker in color? See this example: “Let me do this for you, Mr. Customer, let me check to see if I have a Camaro, just like what you are looking for in stock. At the same time let me check and see what we have coming in the next couple days as well. Are you calling from home or work? And your number there? What is your name? Mr. Customer, if you’ll keep your line open for about ten minutes, I’ll call you right back.” Now if you know the answer to all the questions your customer asked, call him back in a couple of minutes; if not, find the answers, call him back, and tell him the truth. If you have something for him, set up an appointment to show it. If not, call him back, saying that you don’t have what he’s looking for, but that you’ll keep your eyes open. Either way, now you have the information necessary to follow up.

Take Time for Reflection

Take time for reflection when things don’t come out the way you had hoped. If you miss a sale, or have in other disappointments in life take time to reflect. We all make mistakes everyday so we might as well get something out of it. Don’t fall into the trap of saying, ‘I should have,’ ‘I wish I would have,’ or ‘I could have.’ Instead, think about what you can do differently next time to improve. Use failure in a positive way. I am not sure who said it, but they hit the nail on the head when they said “if it doesn’t kill you, it will make you stronger.”

Determine what you want/need to do

What is your goal this year? This month? Today? This is a good formula for figuring out where you want to end up and how you are going to get there.

1. Write down how much money you want to earn this year.
2. Divide that number by your average commission per car to find out how many cars you need to sell.
3. What is your closing ratio? If you need to sell 200 cars and your closing ratio is 20 percent, you’ll need to wait on at least 1000 people (200 divided by 20% =1000). Divide 12 into 1000 to find out how many people you need to talk to in a month: 83. If you work 24 days per month, divide 24 into 83 to find the number of customers you need to talk to each working day. You find that’s 3.
4. Now that you know where you’re going, find the right unit and how you’re going to get there.

The next step is dedication. If you’re going to take a vacation, you know that you need to be a head of your goal before you leave. If you’re out sick or need to be gone for some other reason and fall behind, expect to work extra hours or days to catch up.

Finally set your goal at a number that you would be proud of accomplishing and still be able to maintain balance in your life. Work goals are important, but so are family, time for personal development, and time to eat right, exercise, and attain spiritual fulfillment.