Just a bunch of nonsense.
Politics is apparent everywhere you work. It can exist in a little group of employees, all the way up to high-end management. Situations here ripple out from salesmen to involve management. And for the most part, that's not kosher. And further, there are grown men, nearly 50 to 60 years old out on the line, arguing like children over customers!
Now, I am within management; I'm not on the General Sales Manager or General Manager level, nor do I have seniority over anyone here being so fresh, but I do hold the title of "Manager" and with such a glorified title upon a salesman, I do have to maintain my due diligence, and even though I am slimy greaseball salesman deemed as such by the general public, I have a sense of honor and integrity in this business.
At least amongst one another here. Consumers... I will do my best to make a profit off of you (unless you're a friend of mine).
With that said, I happened to be caught in the middle of the politics charade, which then rippled out from retail to management. A few weeks back on any given Sunday, I was sitting at my desk awaiting the slew of customers to bombard me in a week of unpreparedness and football forgiveness. A retail salesman came to me, asking if I was particularly busy. Particularly, no, not really. He had two appointments coming in, and woudl I be so kind to help him out? "Sure," I said, "but in a fair world, don't you need to turn it to another retail guy?"
"No, because this is my weekend off, and I would like to make some money for myself. I know that you don't need a closer, and I feel that you're stronger than the rest of these jack-offs out front."
I appreciated the sentiment, and I decided, "Why not?" I'll work it like a retail deal, make some money, and call it a day. So, the client came in, I worked them like a retail "up" and made some money with the additional incentive that Internet Managers make selling a vehicle at MSRP with "back end." During this transaction, I was asked by the desk manager how I got this client if a retail salesman was on the front. I simply explained that he had two appointments, and he wanted me to take a crack at it.
The next day, I am confronted by the salesman's closer, demanding to know how I got his salesman's up. Again, I explained my story, and left it at that. In this store, I am "straight sales" with no closer, and as I was the delivering salesman, the closer is bumped off the deal. The closer was upset, but I told him that he needed to take his issue up with the salesman. More politics ensue away from me, and I move on.
It gets better.
I am then confronted by the same salesman, asking if I could take a turn for him. Again, I go through my "integrity spiel" about turning to the guys out front, and he was again working on his day off. I take the turn, work the client, and sell them. Closer is bumped off, and we move on.
At this point, I am getting a regular reputation by making a killing for the retail side, so I had an additional "turn" or two/three/four from salesmen from the front. With my curiosity piqued, I started rooting around to see why these guys come to me instead of keeping their clients out on the retail side of things. Outside of the money, of course. This issue stems from salesmen being brought to fear to turn to the other team with an iron hand from the closers, or a feeling of not having enough strong salesmen to turn to. Weak sucks, unfortunately. And it is ultimately imploding the retail department to the point where closers are instigating more problems within the two teams and causing utter chaos.
Politics. Granted, I played a hand in this game, but I showed my cards to the right people, and I was given the pot--I came up a winner. But my point is that everyone works for the dealership; not for the closers. Not for an individual person. If a salesman is stuck, and s/he absolutely feels that there is a particular salesman that can do his/her damnest to sell a car, whether on his team or not, they should have no fear to utilize that guy. It's better to have a half of a commission than nothing at all. That's how I played with these clients. I worked it, and these retail guys knew I would and sell a car for them.
Then again, I'm just a lowly glorified salesman.
Friday, November 30, 2012
Thursday, November 15, 2012
Tired of Being Badgered
It simply amazes me on how certain sales people take a potential smooth-running deal into an absolute disaster. Some people chalk it up to the sales process. I chalk it up to just plain stupidity and a negative personality. I get the title of today's story for a comparison of the Johnson Automotive commercials with the sleazy salesman/badger and a fellow salesperson.
You can see this great marketing gimmick here: http://youtu.be/G401CC5Rep8
We had hired a new Internet sales person (calling him management would be a disgrace to our store, so I will generously give him the title of a glorified salesman with a computer) a little over a week ago. He came with our new desk manager, who pumped up our general manager and put him together, making him seem like he's all that and a bag of Cool Ranch Doritos. I was warned by others who had the pleasure (again, I am being polite) of working with him for a day or two that I was not going to get along with this guy--my personality and his were not going to mesh. Frankly, I get along with nearly everyone I work with, or at least I try to.
In any case, they were right.
I spent five minutes with this person, and in two of those minutes, I wanted to lock him in a cage and throw him down a well. But, I gave him the benefit of the doubt throughout the week. "Roscoe", as I will refer to him, complained from hour one. Wasn't getting any internet leads, didn't deem my "quick-draw" phone reflexes were fair, whined to the general manager that "he wasn't accustomed to our system" and flat out refused to work it, so on and so forth. That wasn't the least bit of my worries with Roscoe.
He decides to dictate what I need to do, work my leads without my permission, and whine even more that he's not getting any leads in the rotation. And that's just a handful of what is an issue.
But it gets better.
After a day or so from hearing him complain, I get a Costco lead. Figuring that it is an easy sell (as most Costco members are), I gave the opportunity to Roscoe. He brings them down, but doesn't sell them a vehicle.
I send out an e-mail, a follow up inquiring as to why John Doe didn't purchase. I get an e-mail stating that they had the absolute worst service by Roscoe and will never return to our dealership, stating they were lied to, that factoring numbers did not add up; he was even told to "shut up" and "your numbers don't matter--these are the real numbers" straight from Roscoe's own flapping gums. I bring this to my general manager's attention (as he specifically wants a report on all Costco clients that come in and do not leave with a car), and he is utterly appalled. He sends his own e-mail correspondence out, apologizes, and leaves the client alone.
I was not aware of this.
The next day, John Doe sends me an approval letter from his finance company. Reviewing the deal jacket, it looks to be all squared away and I send him an e-mail asking when he could come down and wrap things up.
"I apologize Erik, but I accidentally sent this to the wrong dealership."
Ouch. He did happen to say that the only way he and the misses would ever step foot back into our store again would be under special circumstances. I replied one last time, thinking that he was set on never returning again with only $200 more off the intended Costco price and giving him an out the door figure.
He replies back; "That sounds like a very tempting offer. Let me speak it over with the wife."
I was shocked, and under that impression, he must've been so brutalized by Roscoe over price that I must've given him thousands off the original offer! Lo and behold, he gives me a final call, asking me (before he made a two hour drive--the poor guy) if that was the price, and it wasn't going to change. I assured him it wasn't, and he came down.
From handshake to handshake, it took 30 minutes. Simple. Easy. No hoopla, no garbage... he met with everyone in the dealership (outside of Roscoe, who was fuming that I brought his clients back in and sold them with genuine courtesy), and was honestly happy. He even bus-drove Roscoe to the General Manager, telling him that Roscoe backed up into another car with the one he was buying (and was still cool with the dent)!
Needless to say, after the guy left the dealership, I was left shaking my head. Why? Was it that difficult to say "This is your price. This is the car"? Was it that difficult to do that and make a client happy?
No, it wasn't. When it is set pricing, there is absolutely no need to bend and twist a client's arm into a ridiculous offer. I made a profit, and I had a completely satisfied customer. I hope that for the one's that read my article, that if you are a consumer at a dealer (or anywhere for that matter), if you don't like the guy that you're working with, ask to work with another sales person, or go through the chain and ask for management to work with you. More often than not, that establishment wants your business, but the one's who want your business don't know the nonsense that you go through with salespeople at the bottom of the totem pole until it is absolutely too late and you leave upset.
Don't deal with average salespeople. Deal with the best.
You can see this great marketing gimmick here: http://youtu.be/G401CC5Rep8
We had hired a new Internet sales person (calling him management would be a disgrace to our store, so I will generously give him the title of a glorified salesman with a computer) a little over a week ago. He came with our new desk manager, who pumped up our general manager and put him together, making him seem like he's all that and a bag of Cool Ranch Doritos. I was warned by others who had the pleasure (again, I am being polite) of working with him for a day or two that I was not going to get along with this guy--my personality and his were not going to mesh. Frankly, I get along with nearly everyone I work with, or at least I try to.
In any case, they were right.
I spent five minutes with this person, and in two of those minutes, I wanted to lock him in a cage and throw him down a well. But, I gave him the benefit of the doubt throughout the week. "Roscoe", as I will refer to him, complained from hour one. Wasn't getting any internet leads, didn't deem my "quick-draw" phone reflexes were fair, whined to the general manager that "he wasn't accustomed to our system" and flat out refused to work it, so on and so forth. That wasn't the least bit of my worries with Roscoe.
He decides to dictate what I need to do, work my leads without my permission, and whine even more that he's not getting any leads in the rotation. And that's just a handful of what is an issue.
But it gets better.
After a day or so from hearing him complain, I get a Costco lead. Figuring that it is an easy sell (as most Costco members are), I gave the opportunity to Roscoe. He brings them down, but doesn't sell them a vehicle.
I send out an e-mail, a follow up inquiring as to why John Doe didn't purchase. I get an e-mail stating that they had the absolute worst service by Roscoe and will never return to our dealership, stating they were lied to, that factoring numbers did not add up; he was even told to "shut up" and "your numbers don't matter--these are the real numbers" straight from Roscoe's own flapping gums. I bring this to my general manager's attention (as he specifically wants a report on all Costco clients that come in and do not leave with a car), and he is utterly appalled. He sends his own e-mail correspondence out, apologizes, and leaves the client alone.
I was not aware of this.
The next day, John Doe sends me an approval letter from his finance company. Reviewing the deal jacket, it looks to be all squared away and I send him an e-mail asking when he could come down and wrap things up.
"I apologize Erik, but I accidentally sent this to the wrong dealership."
Ouch. He did happen to say that the only way he and the misses would ever step foot back into our store again would be under special circumstances. I replied one last time, thinking that he was set on never returning again with only $200 more off the intended Costco price and giving him an out the door figure.
He replies back; "That sounds like a very tempting offer. Let me speak it over with the wife."
I was shocked, and under that impression, he must've been so brutalized by Roscoe over price that I must've given him thousands off the original offer! Lo and behold, he gives me a final call, asking me (before he made a two hour drive--the poor guy) if that was the price, and it wasn't going to change. I assured him it wasn't, and he came down.
From handshake to handshake, it took 30 minutes. Simple. Easy. No hoopla, no garbage... he met with everyone in the dealership (outside of Roscoe, who was fuming that I brought his clients back in and sold them with genuine courtesy), and was honestly happy. He even bus-drove Roscoe to the General Manager, telling him that Roscoe backed up into another car with the one he was buying (and was still cool with the dent)!
Needless to say, after the guy left the dealership, I was left shaking my head. Why? Was it that difficult to say "This is your price. This is the car"? Was it that difficult to do that and make a client happy?
No, it wasn't. When it is set pricing, there is absolutely no need to bend and twist a client's arm into a ridiculous offer. I made a profit, and I had a completely satisfied customer. I hope that for the one's that read my article, that if you are a consumer at a dealer (or anywhere for that matter), if you don't like the guy that you're working with, ask to work with another sales person, or go through the chain and ask for management to work with you. More often than not, that establishment wants your business, but the one's who want your business don't know the nonsense that you go through with salespeople at the bottom of the totem pole until it is absolutely too late and you leave upset.
Don't deal with average salespeople. Deal with the best.
Tuesday, November 6, 2012
It's Only a Guide
I was stopped outside my business law class yesterday evening. It is well known (by my valid contracts argument with my professor) that I sell cars, and a classmate had asked me a couple of questions.
Mostly about his vehicle he wanted to trade in.
"How do trade ins work? Do you go off Kelley Blue Book? How much can I get for my Nissan? Would you give me X amount for it? It runs amazing! I just don't like it. It sucks gas, and I need something that's a gas saver."
Whoa, there kiddo. I don't know anything about your car, much less how much I can give you for it. I don't make those life-or-death decisions. That'll cost me my job. I've always learned that in the car business (much less anywhere), the more you know, or perceived to know, the more you will be held responsible.
But I digress. Back to the subject at hand.
Kelley Blue Book seems to be the national standard for people to have some sort of an idea of what their car is worth. But when they step into a dealership, a dealer presents them a number for their vehicle, and they hit the roof. Why? Because everyone believes that their car, whether worth $500 at a scrap yard, or $15,000 at CarMax, will always think that it is worth more. Many times it is sentimental value, a happy occasion or two happened within that run-down Blue Ford Focus Hatchback with the paint oxidizing on the roof; that it "drives like a champ", rattling down the street at 35 miles an hour; or (my favorite) that they owe "$11,394.07" and it should be worth at least "$11,394.08".
Other times, they believe that they can sell their car outside on the street for much more. I have heard this scenario multiple times. I even had a client write a promissory note (a personal check) and promise to sell the car outside for the value of what he believed it would sell. And I get the humbling call that he couldn't sell it at the value he thought it was going to sell for.
Kelley Blue Book, or KBB, has set the American expectations for vehicle value above and beyond the norm. And the average consumer comes to rely on these so-called "tools" to try and get what they want. KBB is a guide; a negotiation tool. Consumers expect to get exactly what KBB tells them, and usually, consumers hit dealers with the "Excellent" condition value. I even had a chuckle at a client who brought in a 2004 Excursion and brought up "Retail Value" for his truck.
Getting KBB is never the case. Not when you're trading in to the dealership. Not when you're selling your car private party. Not ever. I hate to burst the proverbial bubble, but it's absolutely true. An accurate vehicle price is based off of condition and demand. Is your vehicle in prime condition? Is your vehicle one of the most sought after in today's market? If you can do research on those questions, you have some ammunition going into a dealership and getting close to a satifactory value.
Now, there is an issue with getting to such a satisfactory number at a dealership. A dealership will not lose money unless under extreme circumstances--they aren't in the business of giving away cars. No matter how hard you fight them, they will make some sort of money off of you. With a value of a trade, dealers have an insider idea of what goes on at an auction, and can easily input a generalistic idea of what the value of your vehicle is worth. They won't buy your vehicle any more than what it is going at an auction, on top of reconditioning costs (which can be minor or highly substantial), unless they found some money elsewhere. If your vehicle was driven to Hell and back, a dealer will reflect that in their offer. If you take care of your vehicle, you have more of a negotiation factor in your corner.
Ultimately, NO ONE actually knows an accurate value of what a vehicle is worth, because there are so many different types of people and vehicles, how people drive, how long they drive, etc. It is on basic negotiations that Seller agrees to sell his vehicle on how much Buyer considers the value of the car. So, it is not the seller who wins... it's the buyer of the pre-owned vehicle because he set the value.
When and if you decide that you are in the market again, and you have a trade in, throw that blue book, or iPad, tablet, or any other nonsense in the trash or leave it at home. Salespeople hate that garbage. "Kelley Blue Book says I can get X for my car at excellent condition!" Is Kelley Blue Book buying your car or making any money off of you?
Do your research on similar cars you want to buy and then your research on similar vehicles of your car you are trading in at home. These are your negotiation tools and that's all they are. You won't get the value of the highest number you find, so leave that number at home as well and bite the bullet if the dealer comes close. I cannot stress that enough.
Research is your friend. Utilize it.
 |
| The Kelley Blue Book is a great negotiation tool to start with when working with dealerships, but that's the short end of the stick. |
Mostly about his vehicle he wanted to trade in.
"How do trade ins work? Do you go off Kelley Blue Book? How much can I get for my Nissan? Would you give me X amount for it? It runs amazing! I just don't like it. It sucks gas, and I need something that's a gas saver."
Whoa, there kiddo. I don't know anything about your car, much less how much I can give you for it. I don't make those life-or-death decisions. That'll cost me my job. I've always learned that in the car business (much less anywhere), the more you know, or perceived to know, the more you will be held responsible.
But I digress. Back to the subject at hand.
Kelley Blue Book seems to be the national standard for people to have some sort of an idea of what their car is worth. But when they step into a dealership, a dealer presents them a number for their vehicle, and they hit the roof. Why? Because everyone believes that their car, whether worth $500 at a scrap yard, or $15,000 at CarMax, will always think that it is worth more. Many times it is sentimental value, a happy occasion or two happened within that run-down Blue Ford Focus Hatchback with the paint oxidizing on the roof; that it "drives like a champ", rattling down the street at 35 miles an hour; or (my favorite) that they owe "$11,394.07" and it should be worth at least "$11,394.08".
Other times, they believe that they can sell their car outside on the street for much more. I have heard this scenario multiple times. I even had a client write a promissory note (a personal check) and promise to sell the car outside for the value of what he believed it would sell. And I get the humbling call that he couldn't sell it at the value he thought it was going to sell for.
Kelley Blue Book, or KBB, has set the American expectations for vehicle value above and beyond the norm. And the average consumer comes to rely on these so-called "tools" to try and get what they want. KBB is a guide; a negotiation tool. Consumers expect to get exactly what KBB tells them, and usually, consumers hit dealers with the "Excellent" condition value. I even had a chuckle at a client who brought in a 2004 Excursion and brought up "Retail Value" for his truck.
Getting KBB is never the case. Not when you're trading in to the dealership. Not when you're selling your car private party. Not ever. I hate to burst the proverbial bubble, but it's absolutely true. An accurate vehicle price is based off of condition and demand. Is your vehicle in prime condition? Is your vehicle one of the most sought after in today's market? If you can do research on those questions, you have some ammunition going into a dealership and getting close to a satifactory value.
Ultimately, NO ONE actually knows an accurate value of what a vehicle is worth, because there are so many different types of people and vehicles, how people drive, how long they drive, etc. It is on basic negotiations that Seller agrees to sell his vehicle on how much Buyer considers the value of the car. So, it is not the seller who wins... it's the buyer of the pre-owned vehicle because he set the value.
When and if you decide that you are in the market again, and you have a trade in, throw that blue book, or iPad, tablet, or any other nonsense in the trash or leave it at home. Salespeople hate that garbage. "Kelley Blue Book says I can get X for my car at excellent condition!" Is Kelley Blue Book buying your car or making any money off of you?
Do your research on similar cars you want to buy and then your research on similar vehicles of your car you are trading in at home. These are your negotiation tools and that's all they are. You won't get the value of the highest number you find, so leave that number at home as well and bite the bullet if the dealer comes close. I cannot stress that enough.
Research is your friend. Utilize it.
Friday, November 2, 2012
Education and You
 |
| Buying a car takes a bit of common sense. |
"Today, boys and girls, will be a lesson on the fundamentals of mathematics. Just a refresher course to make sure you absolutely understand simple addition and subtraction. Now, if you turn your books to page twenty-six, there are a couple of word problems. Billy, would you mind reading the excerpt?"
"Customer A and B come to E-Z Motors. They bring an advertisement from the local paper for a new truck discounted at $21,995 from $30,000. They want to pay $300 a month for five years. Are they insane or can you find any more money to take from the dealership?"
I hate to bring up the subject of math for the many of you already out of school. I also understand that individuals must have more value for their dollar. But who in their right mind believes a new truck can be valued at $15,000?
I find it amusing on how many clients approach my dealership and attempt to justify that reasoning. Where am I getting my numbers here at $15,000? Simple math, my friend. Customer A wants to pay $300 for five years. $300 x 60 months = $18,000.
"Hold on, wait a minute. You said $15,000... your math is off, my friend." No, I am pretty dead on.
$18,000 is without any down payment, and without any interest (zero percent financing). I'm missing some numbers from the customer to "get to" $300. I'll be nice, using a 9.99% interest rate (with a strong FICO score), and another ten percent for a down payment. $1,500 and $1,500 respectively. Brings me down to $15,000, $300 a month for five years. And that isn't even counting negative equity from your trade in! Many people do not keep cars well into an strong equity position; nearly a quarter of Americans trade in their vehicles with at least $4,400 in negative equity!
"But I don't want to put any money down," or "If you can't get there, then why are you wasting my time?"
Phrases like this aren't very productive. Not for the customer. Not for the dealership. Again, playing the nice guy, a salesman entertains the customer's idea of $300 a month for a $30,000 truck (generously discounted to over $8,000), but there has to be some sort of education when it comes to ridiculous offers like this, and ignorant attitudes.
 |
| Be better prepared when you step foot into a dealership |
Usually, customers become a little more flexible when you embarrass them with basic math, but there are some customers who honestly believe, after an $8,000 discount, there can be even more to be taken off the car. Profit margins in vehicles are roughly 3%-5% from cost to sticker, and it becomes progressively smaller going from trucks to compact sedans. And that is simply to keep in competition with other dealers.
Thank our imported manufacturers and bringing bare minimum profits.
So, with that said, educate yourself when you step foot on a dealer's lot. Not only through pricing, but even on vehicle knowledge, options, and features. A salesman will thank you. You will be better equipped to handle tougher questions from the sales managers, and you won't be embarrassed.
Simple math. Keep it in mind.
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