Sales Managers – Addressing Price

As a manager, you will want to use word tracks that work and practice using them with your team.

For example, at this early phase of the sale, the salesperson’s success will depend on moving the customer out of their perhaps negative expectations and into the retail sales process.

Real-World Scenario

Sales Consultant:
“Welcome to ABC Dealership. How may I assist you?”

customer:
“I just want your best price!”

Surrender and Comply Technique

Sales Consultant:
“No problem. I would be happy to provide you with our best price! In addition to price, I will also provide you with all the information necessary for you to make an informed decision, such as down payments, monthly payments and figures on your present car.”

Pattern Interrupt

“If those figures are not agreeable or affordable, we wouldn’t expect you to do business with us. Fair enough?”

Hard Sell Technique

Benefits to addressing price in this way with the customer:

  • It is simple and honest
  • It is direct and to the point
  • You become unique in the marketplace
  • Develops trust and confidence
  • Demonstrates a willingness to work with the customer

Pricing Examples

  • “Mr. Stevens, if I am unable to provide you with the proper price, I wouldn’t expect you to do business with us here today. (Move to Fact-Finding). may I provide you with figures on your present vehicle?”
  • “Not only will I be happy to work up a price for you, but I am also going to provide you with figures you can agree to as well. Sound fair? Have you already settled on the vehicles you want pricing on?”
  • “I will be more than happy to work up a price for you. Mr. Stevens, would there be any other information you would want, such as the miles, the warranty, the previous owner, and the condition of the vehicle?” (pause) “Are you driving one of our products now?”
  • “Not only will I work up a price for you, but I will also provide you with estimates on the down payment, monthly payments, and figures on your present car. If any of those are not agreeable and affordable we wouldn’t expect you to do business with us today.” (pause) “Are you driving one of our products now?”
  • “Let me assure you that money will not get in the way of you and I doing business. Let’s determine what it is that you want and we will be more than happy to work up prices for you. Sound reasonable? (pause) Are you driving one of our products now?”

These Have Worked

Tools to successfully addressing price:

  1. Be prepared to address the matter of price upfront.
  2. Offer the customer more than he or she asks for.
  3. Move immediately to Fact-Finding.
  4. Respond quickly and naturally.

When a customer speaks, he or she communicates a special meaning behind each word. Psychologists know that each nuance and word can be reflected back by you, to help sell the prospect customer.

We are in an era that requires an immediate and educated response to both factual and emotional needs.

How would you respond to the following questions?

  • “Do you want to drive the vehicle first?”
  • “Do you have a trade-in?”
  • “How much do you want to put down?”
  • “What can you afford to pay monthly?”
  • “How much would you give us for this vehicle?”
  • “Will you buy the car today if the price is right?”

These questions are much too direct and threatening, and cause the customer to take a defensive position.

If you were the sales manager, which selling situation would you prefer?

  • The customer has $1000 to put down.
  • They have budgeted $400 per month.
  • The customer owes $15,000 on a vehicle with an ACV of $12,000.
  • They are not ready to purchase; they’re just looking today.

The customer is driving a 2019 Nissan Maxima.

  • They purchased the vehicle new in 2019. The MSRP was $28,500.
  • Their next payment is due in ten days and is $425 per month.
  • They put down $8,500 on this purchase to finance $20,000.
  • Likes most – gas mileage.
  • Likes least – ride and roominess.
  • Most important – ride and roominess.

You need to conduct Fact-Finding with your customers and the dealership salespeople.

Here are some simple questions you can ask during a meeting with the sales team:

  • Tell me about your customer.
  • What have you done so far?
  • On a scale of 1-10 (with 10 being the highest), how excited are they?
  • How many miles do they drive annually?
  • What’s the most important thing to them? Vehicle? Financing?
  • What other products are they interested in?
  • How did they buy their last vehicle?
  • What would they do differently this time?
  • Have they been to other dealerships? Which ones?