Look at the sales process you have in your store. If you were asked to rank the steps in order of importance what would be at the top of the list? Now, if I asked you to rank them in order based on execution what would be at the top. In other words, what steps do you do well and which steps not so much? I feel that the most important sales steps are the needs analysis, or fact-finding step and the walkaround. However, it is my experience that these are also the steps that are skipped the most. Why are they skipped? That is a topic for another post. The fact is we need these two steps more now than ever. As Elmer Wheeler once said, we need to “sell the sizzle, not the steak”. The customers may have more information than ever before, but so do salespeople (hopefully). Our cars and trucks have more bells and whistles then they every have. When a guest first walks on your lot, how do you think they view your product? More often than not their research has all been based on price. Sure, they have a general idea about what they are looking for. But do you think they know the ins and outs of the traction control system? Do they know the inspection and reconditioning process you put your pre-owned vehicles through? Do you think they should? When performing a walkaround consider this: A few years ago Xerox did a study. They found that there were three ways people learned. 1. Visually – This one is a no-brainer. Make sure you show your guests the features of the vehicle. 2. Auditorally – We have all heard the old adage “stories sell cars”. 3. Kinesthetically – It is important to let your customers lift up the tailgate, move the seat forward, reach down and feel the fully-boxed frame, etc. Xerox found that when all three elements were used in a presentation it was fifteen times more effective. Make sure you incorporate all three elements into your walkaround. Customers are coming into our dealerships with more information than ever before. Invoice, rebates, and trade-in values are readily accessible. They can push a button and get multiple price quotes. This information used to give the salesperson leverage, a way to get control over their guest. Salespeople can get this control back, but it is not by withholding information. It is by sharing the features, advantages, and benefits with the guest by doing a complete walkaround. So, how well do you know your product?

If you want to lose weight you have to step on the scale. Common sense, right? I have worked in dealerships that believe in this and some that don't. As a sales manager, I found that one-on-ones were virtually impossible without data. Not only were they impossible they were useless. How do you coach an individual to success if you don’t know why they are failing? Sports are always compared to sales. Imagine a professional sports franchise that didn’t keep stats. What if a basketball team did not keep track of free throw percentage? How successful would they be if all that was tracked was the final score? Common sense, right? One big difference between sports and sales is the audience. In most cases, there are spectators watching that basketball game. A salesperson can talk to a customer and in some cases no one will know. What will determine if they log that guest? It is human nature to take the path of least resistance. As a salesperson, if my sales manager yells at me because my appointment percentage is too low, I know how to fix it. If I am financially rewarded for a high closing percentage my closing rates will be off the charts. I just won’t log my guests properly. Salespeople need to be educated on why we need accurate numbers. One, in a lot of cases, this is how we gauge our advertising effectiveness. Two, coaching cannot occur without accurate data. You can’t fix a problem you don’t know you have. Sales managers are coaches and mentors. It is vital that we approach numbers carefully. A salesperson will learn to kink numbers quickly if they don’t see constructive criticism and productive feedback.

Quick. Name this product: "Set it and forget it!" I think we can learn a lot about sales from infomercials. But first, look at what they are up against. Now, I’m sure they have done market research that tells them who their buyer is, and they advertise on channels that reach that demographic, but they don’t truly know who will be watching. With all of the choices on TV they have to captivate their audience quickly so that they can deliver their message. The customer can’t touch, smell, hear, or demo their products. Imagine trying to sell a car like that! So how do they do it? Ron Popeil (Ronco) has generated 2 billion dollars in sales by infomercial. How does Ronco get people to drop $160 on a product they have never touched? I think these are some of the keys to an infomercial. First, I see a lot of energy and enthusiasm. Some of the commercials accomplish this by yelling at you. (I don’t recommend this with your customers.) Others do it with a studio audience that claps on cue. When you watch these you see the passion the have for their product. Imagine an infomercial hosted by Ben Stein (Bueller, Bueller…). Also, infomercials are all about benefit. Now, because they are delivering a message to the masses, they must touch on everything their product does. It cuts through a tin can and a tomato. Look at all it will do. But wait, there’s more. The benefits help create the need. How can you live without it? Third, look at when they talk price. There are four basic buyer’s questions. 1. What is it? 2. How does it work? 3. What will it do for me? 4. How much does it cost? These infomercials make sure the first three questions are answered before moving on to the fourth. Not many people would watch if they said, “This is our new vacuum and it costs $300. Now here is how it works.” Also, on price, they rarely mention how much it is. They always reduce to the ridiculous and break it up into “4 easy payments of”. It’s a good lesson for any professional sales person. To sell you must build value before you talk price. You build value in communicating the BENEFITS to the user. Once they perceive the benefits the price discussion becomes much more meaningful for all.

When I was managing salespeople in a dealership there was always a fair amount of emphasis on follow up. As we got better at tracking this part of the sales process through better CRM’s we realized how often the call didn’t happen. Or, if the call did happen, they found out nothing new. Often they couldn’t get their guests to pick up the phone at all. Initially, a good follow up call is set up before the guest leaves the dealership. If they decide not to buy on the first visit, finding out what the customer is thinking and making sure no stone is left unturned is the best way to make sure the guest picks up the phone. Also, set a time for the follow up call, get the best number to contact them, and then ask for another number When talking about before-the-sale follow up, there is one rule that must always be followed. Focus on what has changed. What has changed on your end? What has changed for the customer? Some of the obvious changes for the salesperson are inventory and rebates or incentives. A dealership is always selling cars, getting in fresh inventory either from the factory or on trade. On new vehicles, the manufacturers are always putting out new programs to move inventory. Like I said, fairly obvious. But let’s look at what has changed with the customer. After the guest left the dealership they didn’t climb into a vacuum. They are visiting other dealerships. They may be shopping and researching online (how many times have you had a guest visit your store and submit a lead that same evening?). They may be going over finances. A good sales consultant knows that the guest may be on a different model, brand, or possibly switched from new to used. Spend some time thinking about all the different ways you can get your customers to tell you what has changed. I’d love to see your answers posted.

All of the guests that visit your dealership looking for a vehicle have something in common. Each one has a problem. Their vehicle is either too small or too big. It is too old or maybe it gets bad gas mileage. It won’t tow their boat or carry their family. It may be costing them a fortune in upkeep. They all have a problem. That’s why they are in your dealership in the first place. There are many benefits to finding out what their problem is. First, the need is stated, not implied. Call it “commitment and consistency.” Once committed, people will remain consistent to the commitment. If I tell you I like red, I won’t come back later and tell you I hate red. Second, there is some trust between you and the guest. Not marry-my-daughter trust, but trust nonetheless. “We will solve this. Let’s fix this.” Everyone knows the importance of gaining trust. Third, from a needs standpoint, is there any better closing tool than solving a problem? What is this problem costing them? What are they missing out on? Knowing what the problem is can be powerful. Unfortunately, you can’t just go up to them and ask, “Hey buddy, what’s your problem?” So how do you get your guests to tell you what this problem is? I have found the easiest way to find out what the problem is asking them about the “problem”, that is, their current vehicle. The vehicle they own may be the vehicle holding them back from those great boating trips. Or the vehicle they are currently driving may not fit the entire family. Asking them what they like about their vehicle and then what they don’t like may be all you need to get them talking. It may take a little more prodding, but I promise you, they have a problem. Once the problem is out in the open, don’t stop there. If you really want some ammo to help you close the deal, talk to them about what this problem is costing them. The family may be suffering because they can’t go out on the lake like they want. Their vehicle may be costing them an arm and a leg in gas or repair costs. This is where the emotion comes out. Later on, when the time comes to present the numbers, be sure to revisit the problem and what it is costing them to have it. “Isn’t it going to be nice to make it disappear?” Now you are a Professional Problem Solver. Try this with your next customer. I think you’ll find your deals go much smoother when you know what the problem is.

I just finished a book titled, The Progress Paradox by Gregg Easterbrook. Mr. Easterbrook writes that we as a society have never had it better in terms of income, education rates, and even life expectancy. Even though we have never had it better, in surveys we say that our parents and grandparents had a better lifestyle. Mr. Easterbrook goes on to theorize that one reason this is the case is because we aren’t grateful for what we have. He also blames the media for our current level of unhappiness, but that’s another post. Lets talk about how this relates to the car business. In 1908, when the Model T came out, it was $850. Factor in inflation, a dollar in 1908 is worth $23.20 today. That means if the Model T was released tomorrow it would cost $19,754! For $850 you got front and rear live axles, hand operated band brakes, artillery wheels, and 20 horsepower. Think about what $19,754 will get you today. Let’s get our heads in the game! Use this analogy: You are camping with some friends, and it’s cold. You can sit around and think about how cold you are, which will only make you colder, or you can talk about how to get warm. . I’m not trying to say that we are in a tough economy right now. All I am saying is that the salespeople who look for opportunities are the ones who will succeed. Henry Ford said it best, “If you think you can do a thing or think you can’t do a think, you’re right

A great exercise for a sales meeting is to look at the differences between order takers and salespeople. When I think “order taker” I think fast food. Not that there is anything wrong with that, but think about their agenda. They are there to give the customer what they ask for and move them down the line. Their fact-finding is usually limited to “do you want fries with that.” Contrast that with a salesperson. A salesperson is not there to give the customer what they ask for, but rather give them what they need. A good salesperson separates “needs” from “wants”. A good salesperson builds value in their product and ties these needs to what they have. When is the last time you heard an order taker explain the features, advantages, and benefits of their cheeseburger? A good salesperson looks at objections as opportunities to sell. We could go on and on, but here is the problem: We have order takers pretending to be salespeople. They are talking to our guests. You hear them say things after the guest left such as, “I think they will be back. They like me.” Or how about, “they weren’t here to buy.” Do these sound familiar to any of you? When someone takes the time to learn their product, study how to overcome objections, and role play and practice discovering needs and wants, they will understand another thing that separates salespeople from order takers. Income.