In the world of sales, there’s a constant tug-of-war between price and value. While both are important, an overemphasis on price doesn’t put dealers in the best negotiation position and can ultimately cut into profits. In today’s episode of CBT Now, we’re sitting down with Sean Gardner, instructor and sales trainer at Joe Verde Group, who shares helpful tips to steer the selling process away from price and towards value-building.
Salespeople often default to price cuts and discounts to secure a sale. While this can be a successful way to close a deal, it ultimately snowballs into a bigger problem, leading to diminished gross profits.
The key to successful selling is to shift from a price-focused to a value-driven approach. It maximizes profitability, increases buyer satisfaction, and makes them feel more confident in their purchase.
Gardner points out that there are four steps to building value-driven sales.
Warm-up
The first stage is the warm-up. In this stage, sellers should make customers–who often are already on edge when they visit the dealership–feel comfortable. This is the time to build rapport.
Investigate
After building rapport, it’s time to investigate. Salespeople should ask thoughtful questions about customers’ needs, wants, and lifestyles to guide them to the correct vehicle. Customers can often struggle with feeling distrustful towards salespeople, but when they sense that their wants and needs are being taken seriously, it can foster a sense of trust with sellers.
Demonstrate
Once the vehicle with the correct specs has been identified, it’s time to demonstrate its value to the customer through a test drive and presentation. Build excitement and show the guest why the vehicle is a perfect fit. Garder emphasizes that this is the most crucial part of the process, as 80% of customers will make up their minds during the presentation and demonstration.
Close
Now, it’s time to close the deal. When sellers take the time to build and demonstrate the vehicle’s value to the customer, they often find that there’s no need to defend the price of the vehicle. This better positions the seller for negotiations.
Sometimes, the vehicle is actually within a price range that the customer is satisfied with. Even if it isn’t, when that excitement is built, some customers are willing to spend more than they initially visualized to take home a vehicle they’ve grown to love. It’s a win-win situation!
Gardner highlights that the key to sales success lies in prioritizing value over price. Not only does this effectively close deals and maximize profitability, but it also fosters stronger customer relationships that can lead to more sales later.
"If I sold a million cars, wouldn't I lose a million dollars if I lost a dollar on every deal?" – Sean Gardner
