Martin still wants to know where the win-win is at. Here is how it goes.
At this point in time the only 16% of car buyers leave the dealership with a new or used car. Yes, 84% leave without buying a car. Why do they leave?
- Miss information
- Unreasonable expectations
- Terrible impression of the dealerhip or salesperson
- Pre-conceived ideas
- Not the right vehicle
Just to name a few.
I believe if the consumer has the correct information the closing percent will increase. This means happier customers, happier salespeople, happier managers and happier owners. Here are two different scenarios to look at.
First, my dealership sells 100 cars at an average of $1500 gross profit per car sale. This gross profit is the total of the sale of the car and the finance products sold. Total Gross of $150,000.
Second, my dealership sells 50 cars at an average of $3000 gross profit per car sale. We have the same total Gross Profit $150,000.
Which dealership do I want? The first one. I have twice the customers: more referrals; more service work; more parts sales; more word of mouth advertising. My internal service and parts gross also increases because of the increased inventory that is needed to satisfy the sales demand.
If I can get my service department to generate enough gross to cover all the expenses of the store, known as 100% absorption, then seventy cents of every dollar of gross from the sales department goes directly to the bottom line. The other thirty cents pays for selling expense.
So in a nutshell. I want people to have a great experience, knowing they are getting a great deal at a fair profit. In return I will sell more cars, building my dealerships service business. If people know what to expect they should approach car buying differently than what they do now.
Your cnclusion is correct, we buyers want a great experience and a great car without feeling like we’ve been taken. If you do this you will sell more cars.
Steve Chambers
Sales Training Speaker
Educating the market will make everyone happy
Jose Escalante
http://www.joseescalante.com
Close cooperation with all retailers listed at PriceRunner.com gets the best result for all involved parties. Truck Parts
This is a very good post to explain the win-win for the dealer/salesperson in having an educated customer.
My best customers are the ones that are the most savvy as well. With these customers, we feel like we are in it together…
Seize the Day,
Rob
Sales Tactics For Small Business Owners
The grocery store method, thin margin, high turnover. But it means you have to much better about having the right cars on the lot at the right time and attracting the right buyers, and then, being able to convert those buyers.
Challenging proposition!
Dangers of Fasting,
Katie
People don’t walk away from a sale feeling bad if the experience and service are top notch. It makes them come back and refer others.
Vicki http://www.bridal-threads.com
I thought the gross profit on cars was much higher. I was very happy with the sale of the car I have now. The dealership impressed me. But it was the same dealership 5 years later that pulled that stunt I mentioned earlier. I should really blame the salesman, he was the jerk.
Lisa McLellan
Child Care Expert,
Babysitting Services, Babysitting Tips, Babysitters, Nannies
…and your next vehicle sale may depend on the customer experience and value for money in your service department.
http://www.martin-wright.com
It’s crucial to make the customer feel he had a fair deal. This is a good post illustrating that point.
Bert (alter ego- Mister P)
MisterP.org/blog
My favorite is the terrible impression of the salesperson. Often my experience!
Greg Dougall, Philanthropist-in-Training
Makes sense. Win-win is the way to go.
Keri Eagan
Anything Alternative
If I go to a dealership and don’t buy, it’s because either I’m truly just looking, OR I’m collecting info from one dealership in order to compare that info to another, OR I’ve gotten a negative impression of a person I’ve dealt with at the dealership.
Health, Fitness for Working People — Darryl Pace