SAN JUAN CAPISTRANO, Calif. -

For dealers, the success of their sales staff is perhaps one of the most important elements of the entire store.

In studying the most troubling roadblocks for sales staff during sales negotiation, Joe Verde Sales and Management Training found that price is perceived to be the most troubling part of the sales negotiation process.

In a recent informal poll of auto dealership salespeople during the first quarter of 2013, respondents ranked which part of sales negotiation gave them the most trouble.

The results?

Price: 43.58  percent
Trade Value: 30.73  percent
Monthly Payments: 15.08  percent
Down Payment:10.61 percent

Offering some commentary on the results, Joe Verde, president of Joe Verde Sales and Management Training, said, “Old habits die hard. Desking and negotiating are almost always about price, but price is No. 16 on your customer’s list of buying motives.”

Verde explained that though price is important, customers may be focused on other elements. He explained that switching the focus from price to down payment and monthly payments make the process easier.

 “Sure it’s (price) important, but first comes things like vehicle type, seating for six, rear entertainment system, AWD, back up cameras, 22-inch wheels and a ton of other features. Same in the office, price is what almost every manager focuses on when they’re desking the deal, but in the end, over 90 percent are ‘OK’d’ or rejected based on the terms (down and payment), not the price. It’s important to learn how to rephrase price to budget in the negotiation and how to refocus price and trade back to down and payments,” he continued.

Verde also stressed that reliability and durability as well as the characteristics of the vehicle being sold can make or break a deal, sometimes even more so than price.

“A good deal is a feeling – not a number. Knowing how to handle ‘price’ in any situation is a critical skill for salespeople and their managers, when selling a car, truck, RV or boat. Getting bogged down in price conversations on the lot or on color or equipment objections before you build value, will kill your chances of selling more units and of holding any gross on the vehicles you do end up selling,” Verde continued.

 

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