Do you also give a discount on your asking price three times?24 januari 2018, Paul
How often do you give a discount on a new or used car?
Today it doesn’t make any sense to price your cars above the market price. The price transparency is so ‘out there’ that only the right price (not necessarily the lowest) will attract the right eyeballs and attention to your stock. This leaves little room for maneuver, but what do you do when someone calls for more information and your best price?
Give a discount 3 times?
What I notice in the countless mystery calls we make is that the second discount is given on the phone when the customer asks for it. It’s as follows: you have priced your inventory in the right way, in line with market conditions, without too much negotiating space. This is your first discount. Then the customer calls and asks for your best price, without trade-in. Most of you are inclined to give that discount on the phone. There is discount number two. And if the customer comes to the showroom and asks for the best price, it’s time for the third discount. At the end, all the margin you had before had to be eliminated…
Not with me, of course
Of course, most people will say that they will not communicate the second discount by phone and that they will accept the confrontation in that telephone conversation in order not to avoid giving the discount. What are the word tracks to do this best? It is quite complicated: the customer wants information, in this case the price, and you want to serve that customer, provide him with valuable information. What you do not want is to treat the customer as a ‘zombie’ because he has dared to ask the best price.
The communication with the customer could go according to the following plan. And beware, we are not just talking about money.
The customer asks the best price for a Kia Picanto. Reply from sales: “Thank you for choosing car company X and your question about the best price for our Kia Picanto! We are happy to inform you about our best price conditions on our stock cars. I would like to explain to you that in certain circumstances we deviate from our internet prices. If you would like to give us more information about your wishes, we can see if we can offer alternatives. In order to give you our best proposal, we need some information from you.”
The customer provides the requested information, after which the seller tries to make an appointment. This goes as follows: “Thank you for your information. When does it suit you to visit? I see that you are only 30 minutes away from us! Is this possible to visit us tomorrow morning or maybe even tonight?” In this example, everything is aimed at making the best possible proposal, keeping the dialogue going and subordinating the price to the deal.
Now this is just one of the many ways you can tackle the question about the best price, you give valuable information, in this case about possible alternatives. The goal of the seller is to help the customer and to make an appointment.
What you always need is a process or working method in which you, as a car dealer, explain to your employees how they should respond to questions about the best price. You don’t do this? Then in many, many cases you have to give a discount three times, because you think that nowadays all buyers are price buyers. Process and training are leading, chance is not. And that price is important, but not all-determining. Do not forget that.
About Paul de Vries
Paul de Vries became a Key Automotive Spokesperson at eBay (Marketplace) after selling Nieuweautokopen.nl to eBay back in 2015. Paul is the founder and CEO of the #DCDW Academy and the presenter of the #DCDW Podcast. He is also a by dealers and importers frequently asked speaker in the online automotive industry. Paul is the winner of the prestigious Lighthouse Award 2016 in the U.S.! `Lead the Way op de digitale snelweg’ is Paul’s new book, which can be used as a guide in the online automotive industry. More information is available at: DCDW.nl.