It’s the classic prisoner’s dilemma, to tell or not to tell. Two suspected criminals are separated into two different rooms, and given their options:
Clearly, it benefits both prisoners to not betray each other as they can both go free. Yet, inevitably the prisoners betray each other out of fear that the other will betray them, and that they will get the maximum penalty.
So how does this relate to the classic “Just Give Me the Price” objection? When a salesperson hears that objection, they are faced with a dilemma: to give the price or not to give the price? First, you have to assume that if a customer sends in an Internet lead or calls into a dealership demanding to know the price right off the bat, they are probably making the same inquiry to at least a couple of other dealerships. Based on that reasonable assumption, here are your choices:
1) Don’t give the price.
Ideally it would be in every dealership’s best self-interest to never give the price. If nobody quotes a price, the customer has no choice but to make an appointment with a dealership in order to discover and negotiate a price. But in the information age, this just isn’t how business is done: customers expect the price.
If you don’t give a price and your competitor down the road does give that customer a price, your chances of working with that customer have just dropped to zero while your competitor’s have skyrocketed. So, what do you do?
2) Give the price.
If you and your competitor both give the price, you both still have the opportunity to work with the customer. You’re competing on a level playing field, and the next step is to convince the customer to buy from you. Contrary to what some salespeople believe, the customer will not automatically choose the dealership with the absolute lowest price. Ideally the difference in quoted prices should be minimal, and if you can build trust and give that customer several other reasons to buy from you, then you will win the sale.
For this reason I always recommend giving a price when a customer demands it. However, giving a price does not mean you have to give the gross away. Here are a few tips on how to effectively engage these customers, give them smart quotes and to ultimately secure an appointment:
1) Know Your Market. It pays to shop the competition, use internal sales history and third party resources to tell you what the average selling prices are for the vehicles you’re quoting. If you end up sending a quote that’s close to your competitor’s, you increase your chances of selling to that customer.
2) Give Options. When you send out a price quote for the customer’s desired vehicle, send out a lower and higher-priced option that are similar to the vehicle they inquired about. Use the opportunity to educate the customer that comparing prices of two models isn’t like comparing apples to apples. Prices can vary based on a number of factors such as age, mileage, options and more.
3) Include Payments in the Conversation. Most consumers consider the payment of the vehicle, not just the price, when evaluating a purchase. Offering a link to your website’s credit application, when done the right way, can progress the deal. If you really want to stand out, provide payment estimates in your quotes, or use a real-payment-quoting lead generator such as Payment ProSM to bring you one step closer to the sale.
How do you deal with the “just give me the price” objection? Have you ever sold to a customer who made this demand right up front, and if so, what was your process?