1st Pencil

Ron Henson
Do you send out multiple lease & purchase payments on the 1st pencil?
Donnie Goertzen
Great question, I was just researching this myself. When and how soon does your manager go in? And does anyone have any word tracks for the sales staff when presenting the numbers?
Jonathan Dawson
@Donnie, The word tracks depend on the pricing philosophy and model you are using. I have worked with; Value Price, One Price, 4 Square, 3 Square, Buyers Order, No Payment, 9 Payment, and Difference only 1st pencils. What is your stores current approach to 1st pencil and I would be happy to share with you some ideas. @Ron, I prefer options VS no options and here's my thinking of why... In the psychology of choice there are three stages: 1 option = Take it or Leave it response (Yes OR NO) 2 Options = Either / Or response (This OR That) 3 Options = Sense of choice (Prior to 3 you feel trapped) So my philosophy includes the understanding of basic choice making. When forced between "Yes" or "No", people will always lean towards "No" if there is any fear in their minds. "No" is easier than "Yes". When put into an uncomfortable situation, the subconscious response of "Fight" or "Flight" will be triggered. "Fight" leads to a agressive response - "That's too high!", "If you can't do better than that..." 'Flight" leads to passive response - "I want to think about it." "I'm not ready yet." The right options remove the fear which allows people to say "YES!" faster and easier. IMHO Learn more about the psychology at www.WhyCarGuy.com
Tyler Larson
I am a pre owned store selling only retail. I have a linear worksheet with 8 payment boxes. The top four boxes are without backend products. The bottom four boxes include back end products. I start left to right with shortest term to longest term. And I have a box for "Every $1000 Down =$XX" and My customers tend to pick and choose vs negotiate. Even if they are cash only and have already declined backend products, each customer has the same experience and options.
Patrick Halleen
+1 Tyler Choices, Choices, Choices.. When I was in sales I had the least amount of resistance when I presented the customer with choices. Rather than one payment the customer can say no to, give multiple payments with different down payments and multiple finance terms and let them decied
Tyler Larson
I love tax time! I do this before the write up on non-prime and tax return season customers. On the back of my worksheet I make two columns. On the left column I write starting from the top $500 and work downwards $1,000, $1,500, $2,000, $2,500, $5,000, $10,000+. This column is the downpayment. On the right column I write starting from the top $250, $350, $450, $500, $650, $750, $1000+. This column is the monthly payment. As I am writing the numbers on the back of the worksheet in front of my customer (its like a game) I say, "Okay, I am going to do something with you. I don't usually like to ask this question. I believe it is your choice to choose what you want to do. I present the back of the worksheet to the customer. "I want you to choose a downpayment and monthly payment that is most comfortable to you."

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