Current state of the consumers mind
Hi gang, just wanted to chime in...or rather ask if any of you have had a hard time of closing customers these past few weeks? We have had a ton of both lot and phone action but just can't seem to overcome ANY objection. We've tried everything....Demo first, ask questions later. Ask questions, then demo....ask for the sale early and often, ask for the sale after the demo....I can't think of any other way to do it. Are all of the retail customers drinking the same kool-aid? I know our prices are in line, we use vAuto and put everything on the money. The cars are ready...we spend too much. I'm putting all the money into trades especially if I know we can turn it quick....my staff is likeable, our store is immaculate and I have the cars people want at a price that can't be beat. The buyers are coming in but not buying......ughhhhh?!?! We're still selling ALOT, just not ALL of them.....ANY IDEAS?
Replies to This Discussion
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Permalink Reply by Brian Gluckman on
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Did you see this article in Subprime News yesterday?
http://www.subprimenews.com/spn/news/story.html?id=1204
Apparently, consumer confidence has taken a HUGE dip in September, hitting retail across the board:
http://www.marketwatch.com/story/us-sept-consumer-confidence-index-...
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Permalink Reply by Michael Abrams on
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During a time when customers are taking a lot more time in making a final decision, you have to start to think like those customers. If the vehicle doesn't sell them at that time, it's going to be the dealership that sells them. What I mean here, is that you almost have to assume that every customer is a 'long term shopper' and have your sales team change gears and start to be sources of information instead of salesmen. Know it's a hard paradigm swing, but the longer someone takes to pull the trigger, you have to position yourself to be the one they feel most comfortable pulling the trigger with. It's like the internet customer who is 3 months out from the sale. The dealer who gets him is the dealer that keeps him engaged for that period...Sounds hard, but it's just a different paradigm. Make an alliance with the customer who is shopping to be the trusted source of sound information, and you will see the be backs...be back.
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Permalink Reply by Philip Moore on -
Hi Ted,
We've heard that traffic slowed after the end of C4C, but have not seen conversion slowing the way you describe. I just did a quick pull on the turn for vehicles in KC listed online with one of our partner sites (AT, Cars.com, Vehix, Vast, AOL, Yahoo, eBay, etc). The KC listings without a link to the instant Carfax Report are averaging a 52-day turn, the listings with a Carfax Report have a39-day turn. Hope that helps you benchmark your own performance.
Also, CNW Research publishes a monthly newsletter on industry trends. The latest issue just came out and Art Spinella suggested that a double dip recession in the auto industry is a possibility given consumer sentiment. You may be seeing the leading edge of what CNW was picking up in their surveys.
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Permalink Reply by Ted Heater on -
Everything is in proportion here. Our turn is at 10.80 and average day's in stock is inline at 34.
We had a lady finally stop in yesterday after watching our lot both online and physically for the past 4 months. She questioned why the 3 Series BMW she was looking at had been on our lot for such a long time.....I asked her if she thought 41 days was too long. She was emphatic that this particular car was on our lot longer than that and that I should be dying to sell it for a deep discount.
Another customer thought that his 06 Tribute "S" with 41k 4WD was worth the SAME money as my 06 Explorer Eddie Bauer with 40k, V-8 and loaded to the gills....he claimed "You guys are hurting....it's a buyers market....Take my deal or I'll keep shopping....I may give a $1000 difference...If you don't do it someone else will" I figured his truck at $11500 and our ACV in the Bauer is $18000...which I have priced $1300 less than any Bauer within 100 miles!
Seriously..........
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Permalink Reply by Gene Daughtry on -
At our store we are focusing on collections more than sales (BHPH). What I am hearing, that is a bigger concern, is the overall retail outlook is bad and alot of retailers will not survive a bad holiday season. Commercal real estate is on a bubble like housing and if a bunch of retail stores close after Christmas POP goes the balloon. Until the uncertainty of the markets is smoothed out, confidence will not return. No confidence no spending. Thank you Obama.
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Permalink Reply by Bob Bressi on -
I beleive this climate will continue until after the first of the year. The ficticious bubble that we have been in for the last 10-15 years is over. Instead of selling to everyone breathing we need to focus on good quality consumers. Good quality consumers will always be around and will continue to purchase, we all need to make sure that our image attracts these kind of people.
I think it is hilarious to see all the DEALERS putting full page ads in the papers and advertising like never before in these slow times. It does not work!!!! Focus on your customer base in your CRM'S and service files etc. These are your long term customers. I recently did some research in my files that I do twice a year and the answer is always the same, 80% plus of our purchases are from our current customer base. Two many of us depend on third parties to run our business when in fact we have all the tools at our finger tips.
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Permalink Reply by Brent Abdulla on -
You're never going to sell all of them. Are you closing/negotiating logically or numerically? What are your sales people saying in the close? "If I could would ya?" "How far apart are we?" "What do we have to do to earn your business today?"--Suicide questions!
Absolutely September's consumers' confidence is dipping after C4C. You can either use this as an excuse, or capitalize on the opportunities that are presenting themselves. Most stores I've been in are using it as an excuse, and this month I have been in 8 very successful stores on the West Coast who are still pissing and moaning about wanting their "Heroin" back from the government.
Answer these questions;
1. When is a member of the sales management team greeting these customers? What are they saying when they do greet them?
2. What are your process penetration numbers? Ups to Interviews to Demos to Write Ups to TO's to Closes? Do you know them?
3. When is the last time you and your team had an actual "Closing Role Play" training session?
4. When are these opportunities being called back/followed up on? Let me guess the next day right...everyone calls them the next day! Call them when they're turning out of your lot.
Good luck Ted!
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Permalink Reply by Brent Abdulla on
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You're never going to sell all of them.
Are you closing/negotiating logically or numerically? What are your sales people saying in the close? "If I could would ya?" "How far apart are we?" "Where do you need to be?" "What do we have to do to earn your business today?"--Suicide questions!
Absolutely September's consumers' confidence is dipping after C4C. You can either use this as an excuse, or capitalize on the opportunities that are presenting themselves. Most stores I've been in are using it as an excuse, and this month I have been in 8 very successful stores on the West Coast who even though are top producers, they are still pissing and moaning about wanting their "Heroin" back from the government.
Answer these questions;
1. When is a member of the sales management team greeting these customers? What are they saying when they do greet them?
2. What are your process penetration numbers? Ups to Interviews to Demos to Write Ups to TO's to Closes? Do you know them?
3. When is the last time you and your team had an actual "Closing Role Play" training session?
4. When are these opportunities being called back/followed up on? Let me guess the next day right...everyone calls them the next day! Call them when they're turning out of your lot.
Good luck Ted!
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Permalink Reply by Ted Heater on
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We do walk arounds on 5 different vehicles 4 days a week. We have our salespeople do what we call a "snake." Myself along with our floor manager hit the lot. The "snake" (which includes all salespeople) comes out and greets "us." The "snake" rotates salespeople after each question "we" ask...if they stammer, stumble or blow it the snake goes back inside and has 2 more chances to get us to either "demo, give a customer statement, or gather a name or number" depending on the scenario. If they miss 3 times, the "snake" buys the managers lunch. If they "sell us" then we buy them lunch. As far as real life, our salespeople must introduce the customer to a manager before a demo, customer statement or name and number exchange. No exceptions.
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Permalink Reply by Roger Michaels on -
I think Michael was on point by saying that today's car buyers are taking longer to make a purchase decision. This has a lot to do with diminished consumer confidence and the perception that it is a 'buyers market' when in reality the supply is yet to keep up with demand, causing wholesale prices to go UP. And to top it all of, many people who are willing to buy your car are soon learning that they are unable to buy because banks are reluctant to lend.
This puts us between a rock, a brick wall and a hard place.
These are obviously elements beyond our control. What we can control is our commitment to the process, which has to include constant engagement with our prospects by always following up and acting more as an advocate than a salesperson.
Conventional wisdom suggests that 10% of dealership visitors buy a car on their first visit. I think its more like 2% nowadays.
Sales skills will always be key, but sales professionals who can modify their sales tactics to accommodate today's fickle car buyer are the ones that will succeed.
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Permalink Reply by Josh Gardner on -
Sounds like your putting to much pressure on the staff, the tone of what you wrote sounds like high pressure to me, if thats whats happening then your staff is probably showing signs of nervousness to the customer and or trying to push to hard. Try letting the customer's take test drive by them selves, try telling the staff not to ask so many questions that the customer fells like they are getting interviewed for an FBI job. Give the customer your card at first meet and greet, have the staff tell customers that they are their just to fill out paper work, the cars sell them selves. Put car fax on the dash of every vehicle on the lot.
"We're still selling alot, just not all of them"....... I don't see that happening in todays economy at all.
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Permalink Reply by Ted Heater on
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Josh...your post is "spot on." I am putting to much pressure on my salespeople. I printed off the multiple copies of every "Carfax" and put them on the dash...filled up every car with gas and put the keys in the door, left a note in the front seat that read "no questions please" and then wrote my phone number on the back of several business cards instructing them to call me if they wanted to buy and I would come back down and contract the deal....I fired the entire staff after lunch. I wouldn't want anyone to be to stressed out from asking a customer "How did you hear about us, let me go with you on the test drive so I can point out the features and benefits that you may not have found during your research...and let me introduce you to my finance Manager, he would be happy to answer any questions you may have or he can assist you in finding the best rates and terms for you, and if I have failed to help you find a car that best suits your needs can I have your e-mail address and or phone number so I can call and let you know when I get something in I think you may want to see?" I am too hard on them...I didn't expect they would blow 7 qualified/approved deals on Monday alone.
As far as "We're selling alot, just not all of them...." I guess where you stand depends upon where you sit!
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