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Automotive Sales Training Tip: Show the manufacturer's incentives up front to reduce negotiations later
Most salespeople and even sales managers have become desensitized about their manufacturer's incentives and if you can't get excited about your incentives, don't expect your customers to either. This video provides you with an excellent automotive sales training tip on how to reduce the amount of negotiation required to close a sale and hold your gross profit.
The world of manufacturer’s cash-backs, special interest rates, free option upgrades and other incentive programs can often be very confusing for customers. Some programs are stackable, meaning that customers receive both a cashback and a special interest rate while other programs have the customer choose one or the other. Depending on the manufacturer, there may be different incentives on different vehicles and customers are often not clear as to what incentives apply.
When a customer first sits down at your desk and you’re sharing your first coffee, review ALL of the manufacturer’s incentive programs right up front that are applicable to the vehicle the customer is interested in. Customers will appreciate the fact that you have taken the time to provide the information in a clear, organized and transparent manner. There are dealerships that use incentives as a negotiating tool later in the sale and others that do not disclose the incentives until the very end of the vehicle sale. Yet other dealerships will confuse the trade-in value by adding a cashback incentive, referring to it as trade-in and discount. By reviewing the manufacturer’s incentives up-front you will set yourself apart from your competitors and earn the trust and confidence of your customers. Remember, the incentives are all posted online and many even have their own manufacturer’s micro-websites that are built for the specific purpose of providing this information.
When presenting manufacturer’s incentives, be enthusiastic. We all know that incentives are offered all year long and it’s easy to become blasé and ho-hum. As an industry, we sometimes become desensitized to the world of incentives. However, people that are NOT in the market to buy a new vehicle do not pay attention to manufacturer’s advertising – they tune it out because they have no current need and interest. When a person makes the decision to buy a new vehicle, all of a sudden they start listening and zeroing in on radio, TV and online advertising and they’re often excited to learn that the vehicle they’re interested in has a current special from the manufacturer. In short, the incentive is new and exciting for the customer. Hence, be excited for them. Furthermore, by being enthusiastic about your incentives you are trying to eliminate or at least reduce the amount of price negotiation – they’ve already got a GREAT DEAL.
The following is an example of presenting the price and manufacturer’s incentive a second time when asking for the sale at the end of your sales process: “Mr. Lee, Jeep has designed and engineered the Grand Cherokee that you’ve selected to sell for $60,995 + freight, fees and applicable taxes – all of which will be clearly itemized before you leave here today. No doubt that one of the reasons you’re considering a new vehicle at this time is because of our Sale Event! That being said, we have provided you with an up-front SAVINGS of $2,500, (our biggest savings event ever!) which means that your price,... the SALE PRICE is 58,495! Allow me to show you some really attractive payment options…” If there is a special interest rate incentive, have your Sales Manager calculate the total interest savings and share that with your customer. For example: “Mr. Lee, today you are taking advantage of our 0% financing special. The normal bank rate is 4.9%. That means that with a total-amount-to-finance of $35,455, you are SAVING $5,539.92 in interest over the 72 month term!. This is an absolutely outstanding incentive from our manufacturer and one of the very best all year long. Let me show you some really attractive payment options.” Present your incentives upfront. Be clear, transparent and enthusiastic. Selling is the transfer of enthusiasm. If you can’t get excited about your incentives (or don’t see value), don’t expect your customer to.
I’m Chris Schulthies. For more great content like this or to learn more about our Automotive Training Programs please visit: http://wyemanagement.com/ or call 1.888.993.6468 and discover how an automotive training solution could work for your dealership.
