4-11-09 Apex, NC... Holding gross for salespeople is the same as giving the store profit to the customer. Many customers often want something for nothing and are way out of whack with what they believe their trade is worth. Many salespeople want to make as much money as possible as the deal gets structured and want three of those deals a day. This creates a head banging scenario with the customer leaving and the salesperson bruised because of the non-results and time spent.
First be competitive. Your price presentation had better be marketplace driven. DO NOT present price until you have created value. Fair price and profit go hand-in-hand.
Partner with the customer as you assess the trade. Do it together. Assume the trade is a problem. The sales manager knows what the vehicle is worth. The customers have an internet-driven number in their heads that is often an issue.
Ray Kroc once said, "Look after the customer and the business will take care of itself." So listen to your customer. Customer... do not pretend you are in the car business. The Internet is full of creative disinformation. So do your homework as well. Times are getting better; sales are up. Salespeople expect to be paid, that is the profit part. And customers expect a fair and honest transaction. So give it to them. The profit will fall out. If done right, it is the byproduct of the opportunity.
Remember, the $3.49 hot dogs you bought at the grocery store did not cost the store $3.49. The $4.49 salad at the restaurant did not cost it $4.49. Expect profit. The lights will not stay on long if the dealership is breaking even. Profit means a pay check. I know many of you get your paycheck in the normal way, same amount every time, 15th and 31st. That does not happen in the car business. Then add 12 hour days and seven days a week sometimes.
Customer understand your salesperson. Salesperson understand your customer.
Nothing happens until you sell or buy a car...
Happy selling and happy buying and most of all Happy Easter!