Today’s car shoppers have already done their homework, so starting them out at Point A is a waste of time. BY GRANT CARDONE
Time is killing your sales. The longer you spend with a customer today the less likely you are to make a sale and to make any money. I am happy to prove this to you if you like, as we have tracked over 2 million automotive transactions and have validated when you increase your negotiation time beyond 12 minutes, the gross profit drops by 75 percent
Your customer values time more than money unless they don’t have any. Those with no money and can’t buy will spend all day with you but those that can buy and do have money will not. If they have to spend all day with you to get a deal done they will penalize you in gross profit and in customer satisfaction scores.
Here are five steps to help you maximize your time – and your buyer’s – by closing deals faster:
- Shorten the sales process
The average buyer is spending up to 11 hours on the Internet doing research and only visiting 1.4 dealerships. Let the buyer know you can get this done as fast as they want or you are willing to take as much time as they like. We are using a mobile app with customers today, where the salesperson is able to talk payments in the greeting as a way to expedite the process. As a result, write-ups, demos and gross profits have increased.
- Face objections head on
Customers won’t buy for four reasons: time, money, stalling or product. If you bring these points up before the customer does you will remove obstacles, unspoken objections and get the buyer communicating and increase buyer confidence.
- Be up front and clear with your intentions
The goal is to introduce yourself and make a good impression to set the buyer at ease – you want to set the stage for the entire sales cycle to happen as efficiently as possible, without seeming rushed or sluggish. Don’t waste time with small talk; the customer is not there to get to know you or talk about their life. Show the buyer you are there to get down to business as quickly as you can and then they will naturally tell you about themselves.
- Show price; don’t talk price
Well before you get to the presentation, disclose the price of the product the customer has shown interest in and then offer alternatives to that, one higher and one lower. Don’t wait for the buyer to ask for a price. Be proactive and proud of your price by initiating the price discussion up front so that while you are presenting the product the buyer is not wondering about it the entire time. We did this for a dealer and immediately recognized a doubling of demonstrations and write-ups.
- Break your demonstration into five parts
Twenty years ago you had to show the entire product. Today the buyer has done so much research that this may be unnecessary with some of your buyers. Break your presentation into five parts, and at the end of each segment of the demo ask, “Have you seen enough to make a decision?” There is no reason to continue to show parts of your product once the buyer is ready to buy. You can do a complete presentation at delivery. You should constantly check for opportunities to allow the buyer to purchase your product and not sell beyond that point. This shows the customer your concern for their time and your own. This is the point when you stop selling, get the buyer to take action, and have the critical exchange of value that I talk about in the Closers Survival Guide.
- Stay sold on your offer
You were likely convinced by your parents, teachers and other mentors that getting your way is a bad thing. If you believe in your company, your product and yourself then stay sold on that and insist the buyer do business with you. That means you must repeatedly insist on the business, make sure a manager meets the customer before leaving and always follow up and keep following up no matter what. When you are completely sold you never give up.
Let’s face it, your customer is doing more homework than ever to buy a car and your product has less of a margin and more competition than ever. You must improve your skills so that you, not the product, are exceptional. This means you must get in a regimen of daily sales motivation, daily sales training, practicing, drilling and rehearsing and keep sales solutions within arms reach during your workday.
Be great because nothing else pays (much).