Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Chris Murray

Chris Murray None

Exclusive Blog Posts

Being a Relevant Service Department

Being a Relevant Service Department

The latest news out of the auto industry is that Amazon, everyone’s favorite online retailer, is investing $700 million into the electric truck a…

automotiveMastermind Talks Predictive Analytics

automotiveMastermind Talks Predictive Analytics

We conducted a lot of interviews with thought leaders at NADA 2019, and we will be posting them in the community for the next few weeks.   I…

[WEBINAR] Your GamePlan to Triple Your BDC Close Rate Without Breaking the Bank

[WEBINAR] Your GamePlan to Triple Your BDC Close Rate Without Breaking the Bank

Matt Weinberg, SVP of Consumer Experience at Drive Motors, presented our latest webinar.  He discusses the evolution of the Internet lead and shows …

Advances in Inventory Management

Advances in Inventory Management

 We collected a ton of interviews at NADA, and throughout the coming weeks we'll be releasing them.  John Hensman, General Manager at Hom…

3 Steps to a Better Hiring Process

3 Steps to a Better Hiring Process

Somewhere out there is the perfect candidate for your job opening, but finding that person can be a challenge. How much thought and time do you put into yo…

Haggling vs Negotiating

Recently, in a meeting I was hosting with some advanced sales managers (advanced simply meaning time in the job not necessarily skill level) I asked; What is the difference between a haggler and a negotiator? You could have heard a pin drop in response. I finally offered the answer; about $100,000 a year! That got their attention.

Negotiating is not a talent but a skill, acquired through instruction, training and practice. Our entire ego-driven industry likes to think of themselves as "born salesmen" with nothing but talent and wit, "old school", seat-of-the-pants swashbucklers that desperately cling to the days gone by. Go ahead! Ask your manager where he or she learned to negotiate? Their answer will confirm my assertions. In reality we, as an industry are a bunch of hagglers with no grounding or skill in basic negotiations.

I realized very quickly that the group in front of me was no more equipped to negotiate a car deal than were their salespeople because, after all, none of the "advanced" managers were properly trained nor fairly educated before they ascended to their role of Sales Manager.

Ask any manager what their negotiation system is and they will tell you Four Square. Fred Flintstone bought his first car using Four Square! It might be another way to say "how to give all the gross away!" This archaic, misunderstood and never executed properly process is about all any sales manager seems to have in his or her bag of tricks which is not serving you well.

The first rule of Professional Negotiations is; be the first to deliver the selling price yet in virtually every store we do just the opposite! In fact your Desk Managers are the biggest part of the problem! Desk Managers, well meaning I am sure, are by far the most destructive force in your dealership.

They ask questions like:

1) What have you got?

2) What payment did you discuss?

3) How much did they want for their trade?

4) What did the other dealership say?

5) What is their budget?

When I was in sixth grade at St. Joseph's Sister Thelma always said there are no stupid questions! Wanna bet? Everyone of those Desk Manager questions allows, nay, guarantees that the customer will be in complete control of the negotiations! We violate the first rule of negotiating by allowing such ridiculous and lazy questions to be asked by Desk Managers and we can never win from there.

Cleverly we have blamed the poorest in history gross profits on the internet, the factory, competitive markets, leasing ad nauseam, ad infinitum. While all nice and neat excuses they are simply excuses for a lack of skill development, lack of training and a lack of desire by all parties concerned.

Can you and your dealership continue to absorb the enormous costs of poor negotiations much longer? Imagine if you actually had a negotiation strategy at your store that is carried out on each and every sale? Imagine your staff being competent and capable of actually closing high gross deals HONESTLY and without any fear of unwinding a deal? Imagine getting paid a fair profit for a fair sale?

They say there is one tide that will lift all boats in a dealership and that "tide" is gross profit which can only be earned through negotiations. Honestly, is your staff prepared?

 

 Unlock all of the community & features  Join Now