Does the Traditional Automotive Sales Process Inhibit the Trust Building Process?

[jsteverichards]

Originally Posted by daveb

I found jsteverichards' post to be spot on,when it comes to the life and times of today's customer and salesperson. Is it to that extreme at every store? No,but if you've got an idiot for a salesmanager it can be hell being a salesperson these days. I think he had a lot of very good and valid points.

I couldn't agree more when it came to crowes post. After reading it I have to wonder why anyone in their right mind would want to own a dealership in today's world.


I'm really digging all of these smilies

Is it ok to be 50 going on 10?

daveb, all too often the "idiot sales manager" is a decent, ambitious, and hard-working human being who is among the most short-changed of all retail car people when it comes to training and education necessary to succeed in today's enviroment. But the result is the same; low grosses, low closing ratios, low levels of customer loyalty and ridiculous turnover. Merry Christmas.

[jsteverichards]

Originally Posted by XDCX

To the contrary, my goal isn't to correct anyone.

You're entitled to your opinion and you're welcome to share it. My only goal is to limit the number of posts where other members are referred to as bozos, sermonizers, or clowns.

XDCX, thanks, but Marv certainly didn't scare me away or insult me. In fact thank you for the email letting me know about the posts; this is the first time I've been back here since I "sermonized!" The last 5 months have been my busiest ever. Seems more and more car people are looking for a better way to sell a car. Merry Christmas, I'd forgotten how fun and stimulating this site is - I'll be back! Thank you for the terrific job you do.

[jsteverichards]

CarguyCo,

Maybe Marv can answer these questions.

1. Most of the good retail automobile people I've met are personable, hard-working, smart, and honest. This I know. Yet 300 million Americans or so, when asked to provide a one-word description of a car sales person, are probably not going to use any of the aforementioned words. Why?
   
2. Many new sales people who have come from other fields or industries perform well early, then their performance tails off rapidly. Why?

[MARV]

Originally Posted by jsteverichards

Marv, Bozo here; I have been selling cars since 1978. I still sell them. I practice what I "sermonize." Are you, like many in our business, blaming the consumer for lower than deserved grosses that sales team members generate? Blaming the consumer for their distasteful feelings about the typical automotive purchase process? Damn those buyers; but don't forget it is we who have trained them. More later; Merry Christmas and Happy Holidays to all. Steve

I started selling a year later in 1979 so I too know something about this business.

I do NOT blame the customer. WE are at the nucleus of this malady. Our industry created the misgivings customers have about us through lies, deception, false advertising, misleading trigger terms etc. the list goes on. The Gunderson/Sonic debacles perpetuate the problem as well not to mention Duane Overholt's revelation to the public that confirmed what everyone suspected of the auto industry at large. We have trained them. The unfortunate trajedy is that those type dealers are in the minority. I absolutely believe that most dealers make a concerted effort to treat the customer with care and respect. I know we do. The obvious problem is that few people actually believe they get a fair deal because of the problems of a few. It's always in the back of their mind that they got the shaft.

[CarguyCO]

Thanks for the response...

I did some research on you Steve....I found your REDZONE website...a bit outdated yet I'm still interested in what you have to say...

Am I in the wrong place...feel free to pm me I'd like to learn more...

I do things, it seems, exactly like you train, would love to hear more..thanks.

[MARV]

Originally Posted by jsteverichards

CarguyCo,

Maybe Marv can answer these questions.

1. Most of the good retail automobile people I've met are personable, hard-working, smart, and honest. This I know. Yet 300 million Americans or so, when asked to provide a one-word description of a car sales person, are probably not going to use any of the aforementioned words. Why?
   
2. Many new sales people who have come from other fields or industries perform well early, then their performance tails off rapidly. Why?

1. They won't because they don't truly believe we can be described this way based on their perception due to the sins of past practices by our industry. The general populance rate us near the bottom of the ladder near attorneys for many of the same reasons. Is it possible to change the general attitude of corporate America toward auto salespeople? I don't know. Perhaps one feasible way would be if dealers adopted a one price system. While this practice never seemed to get Saturn out of the red it certainly gave them a shiny image. Sounded like a great concept at least in focus groups.

I believe most dealers try to do the right thing and their people have the same attitude. It's unfortunate we've dug a pit so deep we may never emerge as a trusted industry.

2. The reason is quite simple. Our industry has no universally adopted mentoring model that has proven effective enough to lead people to their potential.

When most salespeople start out in this industry they are excited for a variety of reasons. The fresh smell of the new car is infectious, the technology is dazzling, the money can be outrageous compared to many other fields, the allure of getting a new demo to drive etc.

After a few months or so the new has worn off and then the new salesperson has sold most of his friends/family/associates and begins to look for new prospects. Without the leadership of the management in the store the salesperson falters and at the least becomes a mediocre performer or eventually leaves with a bad taste in his mouth wondering why he ever got involved selling cars in the first place.

This is usually because we don't hire or train very well as managers. We sit back on our asses waiting for the sales staff to make our living for us and then blame them for every problem when business goes south rather than getting out of our comfy offices and helping the staff continue being successful. Most salespeople I've met WANT to do a good job and make the customer happy. I can't think of a single individual I've encountered that actually found pleasure in upsetting a customer.

When we, as managers, begin to adopt a position of mentorship toward our people and make it our number one priority to lead them to be the best they can be and train them to treat the customer with respect and appreciation then we will have done our job.

Without honest salespeople full of integrity and a desire to exceed the customer's expectation the world comes to a screeching halt.

[CarguyCO]

I could certainly add some light to this.

I have been in the business for about 2 years and 3 months and 22 days...and 12 hours

My background is self employment....

I had a wonderful first sales manager...he said it was all about rapport and earning the right to ask the difficult questions...and to ask for the sale.

I never knew I was selling when I was self employed...and to this day, the best car deals don't seem like selling either...every once in awhile I have to push.

I am lucky, I am at a dealership that is a bit different...which is probably why we are so successful. We use full disclosure from the very beginning....most of the time. Sometimes when the customer is payment focused we don't...but b4 they hit the box they know everything....trade allowance....taxes...all of it. I average 14.5 cars per month in a store that the top salesman averages 16 cars per month...I am almost always in the top 3 and have been salesman of the month 9 times in 27 months.

Our sales managers are also desk managers.....we are asked to TO early and often...I don't always do that. I build rapport...figure out wants and needs....and get a committment...if that committment if far away from what we can do, I TO and hope for the best. So does our #1 salesman and I have learned a lot from him. I probably couldn't survive at a more traditional store. My sales managers rarely berate me for disclosing too much or for giving up too much. Occassionaly I make a mistake....we all do, but when I do they only chastise for a short time.

One thing I perceive as different is the pricing. 60% of our sales are internet generated and low gross deals from the start. I work my pay plan as it is volume skewed...because of this, we short sell a lot of our deals. We base our entire plan on volume, not gross. When I have opportunity to make gross...I usually do. If I sell 14 cars in a month...I may average 1200 per deal over pack. The occassional 4 pounder can be had and I get one or two per month..

What is my point....let me reread what I have typed...sorry the Crown and water is flowing.


Most of my customers are very loyal and very happy when they leave....I very rarely make more than 1 trip to the desk....this is because of the internet as well....our pricing is very competitive and we add value to our cars with warranty. Because of this, most folks know they are getting a good deal...and with me they aren't getting the usual salesman...if they are looking for that they will be disappointed. I build rapport quickly and I don't usually have to turn on the slick willy personallity...they believe me when I say we are all in.

Our owner makes a point to hire guys like me...are they all like me? Nah....but those guys don't last long with us. If they slip through the cracks....they don't like doing it our way. Do we give up some gross being this way? Absolutely, but I think we have a ton of repeat business, which is easier, because of it.

I still am not sure what my point is.

We have very little heat...in my 27 months of employment I have had 0 rollbacks...some of the kinkier salesman have some rollbacks...I have had only one customer blow out of the box...and she came back 4 hours later and re-entered the box and bought a service contract and all the other goodies....she is one of my happier customers.

I think most folks that succeed early and fail later don't grasp the concept of selling...they don't realize that if they have to work at the easy parts (rapport and asking for the sale) they don't have it in them naturally. Can that stuff be taught? I don't think it can....if it isn't natural it always seems forced which is why we are looked at the way we are...people can tell when you're faking it.

Gosh..what the h... was my point....

I really have to thank my trainer...he showed me that the most important thing was that the customer was happy and felt like his wants and needs were addressed and that he wasn't sold, he was helped. Truth is we aren't as much salesman as we are facilitators...the cars sell themselves, the atmosphere of the dealership sells itself....the salesman sells him/herself....someone just has to do the paperwork.

I am lucky, very lucky.

If I didn't make a point, let me know so I can try again tomorrow drinking coffee. One other thing I learned as a carsalesman is that Crown mixes best w/ ice.

Happy holidays....

[daveb]

Excellent points everybody.

CarguyCO,you had several good points in there,even though at times you weren't too sure.

And as I know it to be true,the only way to drink Crown is with water,unless straight up or on the rocks.

It's always good to see someone still happy to be in the car biz and very content with their management team. It does exist out there.

[possum]

If you are wondering what the customers think about us, go to some Chrysler Forums. In there, you will find "Dealer Issues". We should feel no mercy towards them.

[crowe]

The car biz is not for everyone & the ones I’ve seen succeed are extremely self-motivated & thick-skinned.

We have an experienced staff & very low turn over, I think in part because of an aggressive pay plan w/ stair-steps based on volume. We also pay $10 for every up if w/ demo, write-up, TO & no sale. My guys are pretty low maintenance w/ great presentations & they’re all strong closers. I have one hard & fast rule: No Lies Period! Other than that it is all fair game.

One of the things I like best about this biz is closing. When you sell a car to someone who said no multiple times you’ve done your job. If you don’t want to buy a car don’t come in here or you will be sold. This is my turf I didn’t knock on their door trying to sell them a vacuum cleaner. When they come in they have my money in their pocket, they shouldn’t have my money & if they leave without buying someone will probably steal my money.

Btw the majority of our biz is repeat & referrals & I've never had a year that did not increase sales from the previous year.

Do I think that it is fair that I make a lot more money than most people do? Yes & I think I should make even more.

“The only thing better than having money is having someone else’s money.” Larry The Liquidator

I love this biz!

[MARV]

Originally Posted by crowe

The car biz is not for everyone & the ones I’ve seen succeed are extremely self-motivated & thick-skinned.

We have an experienced staff & very low turn over, I think in part because of an aggressive pay plan w/ stair-steps based on volume. We also pay $10 for every up if w/ demo, write-up, TO & no sale. My guys are pretty low maintenance w/ great presentations & they’re all strong closers. I have one hard & fast rule: No Lies Period! Other than that it is all fair game.

One of the things I like best about this biz is closing. When you sell a car to someone who said no multiple times you’ve done your job. If you don’t want to buy a car don’t come in here or you will be sold. This is my turf I didn’t knock on their door trying to sell them a vacuum cleaner. When they come in they have my money in their pocket, they shouldn’t have my money & if they leave without buying someone will probably steal my money.

Btw the majority of our biz is repeat & referrals & I've never had a year that did not increase sales from the previous year.

Do I think that it is fair that I make a lot more money than most people do? Yes & I think I should make even more.

“The only thing better than having money is having someone else’s money.” Larry The Liquidator

I love this biz!

I frequently tell our sales staff "Stop looking at these customers as your friends-they're not! Start looking at the next one as your mortgage payment, your car note or your bar tab."

[CarguyCO]

Now that I've had some coffee...

There is a fine line between building rapport and being able to turn off the friend switch and ask for the sale....

Most of the time if rapport is good this is easy....I get suprised once in a while.

[crowe]

In different stores over the years I’ve worked w/ 4 salesmen that consistently sold 50+ per month. All subscribed to the same traits: consistently contacting previous customers & running a fine line between being aggressive & being a jerk while obviously believing if they weren’t being a jerk some of the time they weren’t being aggressive enough.

I over heard one say to a customer when asked how much a particular new car was “ the price is right here” as he pointed to the MSRP sticker, the customer said “do you think I’m crazy enough to pay sticker price” the salesman replied “ well I wasn’t sure but I didn’t want to miss an opportunity to make some money if you were” & yes he closed the deal.

Nobody closes them all but I’m a firm believer in trying to. I also believe in metrics. My salesmen calculate their closing ratios every month & mgmt does too. Our log policy is if your mother calls you to see what you want for Christmas log it. You can’t fix what you can’t measure.

I’m also a firm believer in training. Factory certification is a requirement not an option. The best trainers I’ve seen were previously successful in this biz. The worst, well there’s an old saying “ those that can do & those that can’t teach”.

Btw I love opposing opinions, I must I’ve been married to the same hard head for 25 years & I have a son in law school that would argue w/ a stop sign.

I’m old school since 73’ but always looking for new knowledge.