Price negotiations often feel like a relentless battle for salespeople and managers. However, Sean Gardner, instructor and sales trainer at the Joe Verde Group, offers a solution. In today’s episode of CBT Now, he shares four key skills that can help dealers move away from price-driven deals and towards a more effective, value-based sales approach.
Gardner recounts a conversation with a Mazda salesperson who struggled with customers demanding the best price upfront. While acknowledging that price-focused transactions are sometimes unavoidable, he emphasizes that dealers have a choice—either engage in the price grind or adopt better sales techniques to close more deals profitably.
Skill #1: Learn how to gently set the price conversation aside
Gardner explains that when a customer walks in asking for the best price, salespeople should acknowledge the question but immediately pivot to discussing the customer’s needs and preferences.
He provides an excellent example that demonstrates how to move past the question easily, “Speaking of the price, are you more interested in a hybrid or gas?”
After asking the initial question, continue to ask questions to uncover the customer’s wants and needs better. This approach acknowledges the customer’s initial question while gently steering them away from price, allowing for a deeper engagement.
Skill #2: Consistently provide more and better demos
Gardner points out that 99% of buyers want to test-drive a car before purchasing, yet many salespeople fail to leverage this. The demonstration is by far the most critical step in shifting the conversation away from price and more toward value.
Instead of asking if the customer wants to drive, salespeople should assume the demo is part of the process and guide the customer into experiencing the vehicle firsthand.
He highlights that one of the biggest mistakes that many salespeople make is failing to use assumptive language. When permissive questions drive the interaction, it shifts a lot of the power to the customer and increases the chances of them saying “no” or declining.
Skill #3: Close the deal on value, not price
The third skill is closing deals without using price as the primary factor. Gardner highlights that many salespeople default to price-based closes, such as asking, “What would it take to earn your business?” These tactics can easily backfire, resulting in a customer asking for a low price and making it easier for them to leave and shop elsewhere if denied. Instead, salespeople should focus on closing based on the vehicle’s value, the dealership’s reputation, and their own expertise.
When a salesperson can effectively close the deal based on the value of the vehicle instead of the price, it provides better leverage for negotiation, resulting in more profitable deals.
Skill #4: Effective presentation of numbers
Finally, Gardner underscores the importance of a strong initial presentation of numbers. The first 10 words in a negotiation can set the tone for the entire conversation. Rather than immediately negotiating the price, salespeople should reinforce the value of the car’s features and benefits, ensuring customers see the worth of their purchase beyond just the cost.
Beat the price grind and sell more cars
By mastering these four skills—deferring price discussions, improving demos, closing without price, and presenting numbers effectively—sales professionals can boost their success while creating a more enjoyable experience for both themselves and their customers.
"If you close on price, you're scaring today's informed buyer away from your store." – Sean Gardner
