Here we go again, another article about closing deals during this craziness the “chip-shortage” is causing. I can’t help but talk about this because, lack of inventory, supply and demand, addendum pricing, and similar topics are all that any dealer or salesperson is talking about.
During this inventory shortage, we have learned one thing, customers WILL pay ‘all the money’ if the salesperson has the confidence to ask for it and they have the confidence to present a reason to the customer as to why they need to pay all the money.
The conversations would go something like this:
Customer: “That is too much money.”
Salesperson: “Yeah, but this is the only car in the region like this, so if you don’t want to buy it, someone else will. So, it’s really up to you.”
Customer: “Ok, I will take it.”
That example may be slightly exaggerated however, I believe you get the point. The confidence of having the last vehicle like this, the confidence of knowing another customer will come in a pay the money gives normally timid salespeople the feeling of being KING KONG. They have a false sense of confidence that all of a sudden, they are super salesperson. This was even the topic of a recent article.
So, what happens when the market shifts or customers decide it is not worth it to buy under these market conditions?
If you don’t have a plan for when this happens, you better get one quick because it appears that inventories are not going to right themselves anytime soon. However, according to several dealer principals, sales managers, and salespeople I have talked to recently, the customer mind state is beginning to shift. More and more customers are looking at the current pricing logically and deciding that it is not worth it to purchase a vehicle under these market conditions.
As a salesperson, you have one of two choices:
- Go back to being a timid salesperson, one who does nothing but negotiate money and sells through discount.
- Believe you can learn the skills needed to have the same confidence you have now and do what it takes to master those skills.
If you choose the first option, you can stop reading here. Nothing that I say for here on out is going to make any difference. If you do not believe that you can continue to get the same level of pricing that you are getting during this “chip crisis,” then you never will. And you will go back to being a mediocre at best salesperson and probably look for a career you can love and be passionate enough to do what it takes to continuously get better at it.
Now, if you choose option two, congratulations and keep on reading. I will help you get started down the path to earning top tier commission regardless of the weather, supply, economy, or any other outside influence typical salespeople use for the excuse they are not successful.
Let’s take a look at the previous example:
Customer: “That is too much money.”
Customers have been saying this longer before the “chip-shortage” and they will be saying it long afterwards as well. If you want to have a long and successful career you need to have multiple tools in your arsenal to deal with this, WITHOUT OFFERING to DISCOUNT.
Remember, not discounting is the key. Any mediocre salesperson can discount their way into a close and then complain about the customer, the product, the dealership, the pay plan, and their commission check. However, that is not the definition of success, at least not mine.
8 Stages to get Beyond “That is too much money.” Without Discounting.
- Relate to your customer – At the beginning of any negotiation customers are going to see you as an adversary. You always want to align yourself with your customer, so they view you as on their team. This will allow you to work together to find a solution.
- Narrow down the objection to ONLY one – Objections about money may not be about money. They could be hiding a different concern, such as timing, vehicle needs, even a lack of trust. So, when a customer says, “that is too much money,” they may really mean, that is too much money BECAUSE…
- Confirm the concern will prevent the customer from purchase – Some customers just like to complain about the price; however, they already knew what the price was before they got to you, and they came anyways. Never turn a complaint into an objection.
- Determine the customer reasoning – Without proper context, a money objection everything or nothing at all. Asking questions like, “why do you say that?” or “compared to what?” can provide you with the information you need to address and overcome the concern.
- Tie down the customer – Ensure the customer will complete the purchase if you are able to address their concern. In this particular case, you must not commit them with discount, you get them to agree that if you can get them a price, they see the value in, they will move forward with the purchase.
- Generate the emotions to buy – Build value by restating the most important benefits to the customer, from their point of view. Amplify all current pain points and problems the customer is looking to solve. Then paint the mental picture of the relief the customer will feel with the purchase of the solution you are offering them.
- Provide the customer with information they can justify – Most customers decide to buy based upon emotions and then justify that decision logically. Use techniques such as a breakdown method to do this. Example: “The safety features your spouse said were a must have at $3000 and that is a $66 payment.” A statement like this takes the emotional tie of the safety of their family, the fulfillment of their spouses wishes, and tied it to a monetary value the customer can justify. Remember, it is when value exceeds price (or payment in this example) by one dollar, you have a sale.
- Present options to choose from – People love choices. Choices allow you to control the customer answers.
Ask the customer to:
No matter the option your customer decides they can justify, you end up with a sale. As stated earlier in this article, a close like this will be timeless and you will benefit from it now and in the future. This is a process that requires practice, and effort to learn. It can be used to address almost all monetary concerns and objections. Whether this is your first week in the car business or you are a twenty-year veteran. You took the time to read this entire article and learning this process can be your next (or first) step towards enhancing your career.