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Morgan Hardy

Morgan Hardy Social Media Manager, BDC

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Who can give pricing?

Are sales managers the only ones who should be able to desk deals and provide pricing? 

Being a dealership with multiple brands, this becomes an issue due to the BDC needing pricing, as well as the salespeople. It always seems like such a hassle to get the information when we're busy or there's only one sales manager on duty. 

Our luxury brand doesn't get quite as busy as the others so there is only one sales manager, one salesperson, and one BDC person trained. It becomes difficult to cover all shifts and to get pricing for a customer when the manager is off or with someone. The salespeople, of course, do not have access to giving sales quotes.

To remedy these issues, we have trained one BDC person and the one salesperson for our luxury brand on desking the deals. We have had a lot of internal controversy over this, specifically with the BDC person having this ability. The sales managers seem to think that they should be the only ones giving out pricing sheets that are presented to the customers. However, it has helped in many instances when they are backed up. It's never good customer service to make a customer wait hours or sometimes until the next day to receive pricing. By this time, they've already gotten pricing from other dealerships and have probably made their decision on who they are going to purchase from. 

Being that one BDC person trained on our luxury brand and having the ability to provide pricing for my customers and my team, it has been tremendously beneficial and time-saving. It also gives us, in the BDC the ability to provide better customer service and a faster response rate. 

How important do you think it is to have others trained to do this? Maybe it would be beneficial for your dealership?

Jason Snedegar

I am the BDC Manager for a multiple brand dealership and I think it would be extremely beneficial to be able to work numbers as well. I don't think it would be good for every customer who asks mainly because there is nothing worse than being shopped and having your numbers being taken to a different dealership. But for those customers who have made multiple purchases and use our service department as well, what could it hurt? 

Craig Polito

Hi Morgan, great conversation you have stared. Giving price has always been and still is the major objection for most dealers. The fear is “They will shop our numbers”, which maybe true. The question I always ask my clients, if you called a business and ask for price and they would not offer a price what would you do?  The common response I get is “I would hang up and go elsewhere. So, what we can agree on if you don’t answer the question 100% of customers will shop for sure.

Think about this… I would rather have 50% of something versus 100% of nothing. What I mean by this statement is, some customers will agree to moved forward with an appointment to visit your dealership that day or the next day. They may shop and come back to your store because you did not put the client thru the grind by not offering price. Its all about the BDC or sales rep’s confidence, tonality and professionalism. Today’s customers are interviewing your store to see if they want to even do business will you beside price.

Who should give price?  If you have a BDC, the BDC manager needs to be able to give price and desk a deal if necessary. All BDC’s have a back up for the BDC manager. That person should perform the same function of the manager when the manager is not there. The issue with upper management is they want to control pricing, who gives it and when. Management does not have confidence in the BDC to handle pricing. Well teach them mangers! 50% of your business comes through the BDC. If there is no BDC and salespeople answered email leads and take phone calls. A sales manager needs to be dedicated to managing that part of the business. FULL TIME.

One of my training topics has been for a very long time is “Honor the Button”. Morgan the bottom of your blog you show a button that’s tells the consumer to click here for a price quote! If a dealer’s website has call to action button’s like... “Get E price”, “Get today's Price”, “Ask for price quote”. So, may question to dealers what is your E-price? If you were on a website the had a button that said you and E-price what you expect? Of course, a better price than you see listed on the web site. If you don’t want to dive out pricing unless you must, then change the name of your call to action button. People will still ask price often, but everybody will ask price when you offer a button that reflects a better price than what is reflected on your website. Does your store Honor the Button?

Conclusion:

1.      What does your call to action buttons say?

2.      Teach your BDC manager on how to desk a deal and giving price if necessary.

3.      You must have a back up for the BDC manager to give pricing

4.      What is your pricing philosophy, how do you determine pricing? New and Used?

5.      Does your staff execute confidence, positive tonality and professionalism when speaking to a customer or emailing?

Today Customer looks for 4 things when they interview a store before they will do business!

I refer to this as the 4 T’s

Tailored responses
Trustworthy Responses
Transparency
Timely

Craig Polito
ACPConsultinggroup.com

R. J. James

Morgin... Several years ago, I was a BDC Director for a combined Honda, Nissan, and Used Vehicle operation.  The Honda New Car Sales Manager gave us pricing ranges, the Nissan New Car Sales Manager gave us a convoluted pricing scheme, and the Used Car Manager refused to give us pricing and demanded that we "Just get in!"

Bottom line, we were much more successful in getting Honda customers to Schedule an appointment, Show, and Buy.  Our Appointments, Shows, and Buy rates with Nissan customers was not as good.  And getting Customers, interested in our Used Cars, to Schedule and appointment,  Show, and Buy was dismal.

However, after six months, the GM stepped in and gave me Pricing Power, with accountability for  targeted percentages for: Appointments, Shows, Sold, and Gross... the BDC Business BLEW-Up!!!

So I can honestly say, that having the BDC capable of giving a Customer a Price can and will have a POSITIVE impact on Sales and Gross! 

 

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