With new tariffs now in effect, rising costs are out of a dealer’s control. However, how customers are treated in the showroom remains entirely within their grasp. In today’s episode of Inside Automotive, Shep Hyken–customer service and experience expert, keynote speaker, and New York Times and Wall Street Journal best-selling author–shares how dealers can strengthen the customer experience and establish trust during economic uncertainty.
Transparency is the most essential tool dealers have right now. Hyken encourages dealers to clearly explain why prices are rising and which specific components are impacted. Rather than avoiding the conversation, being upfront about the reasons behind price increases helps build long-term trust.
Price conversations can easily become tense or uncomfortable. It’s important to avoid reacting defensively if customers push back. For example, avoid dismissive remarks like, “Go somewhere else, and you’ll see it’s the same thing.” Not only does it create a negative customer experience, it also makes it unlikely that the guest will return to do business in the future. Instead, dealers should take the opportunity to explain the why behind the price increase and reassure the guest that they’re doing what they can to provide the best price possible with the current circumstances.
One way to offset rising costs is by partnering with vendors to identify opportunities for savings. Dealers should approach their suppliers to find mutually beneficial ways to reduce expenses without compromising quality and pass the savings to customers.
The quickest and most surefire way to destroy a customer’s trust is by inflating prices beyond the MSRP to capitalize on short-term demand. While some dealers may be tempted to hold or raise prices on current tariff-free inventory in anticipation of more expensive incoming stock, Hyken warns that this could damage a dealers’ relationship with guests and reputation. He recommends that dealers play the long game. While it may result in a temporary dip in profits, taking care of customers today will build their loyalty, resulting in a higher chance that they’ll return in the future.
Ultimately, Hyken urges dealers to shift their approach from transactional to consultative. When customer anxiety is running high, taking the time to help customers understand what’s happening will go a long way in building loyalty and keeping customers coming back.
"There are amazing salespeople and dealers that have maintained relationships for years, and they didn't do it by taking advantage of a customer. Instead, they gave that customer the service and respect they deserve and a reasonable price with reasonable profit built in. Everything is at risk if you choose to look at the short game." – Shep Hyken
