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10 Things Every Car Salesman Should Know

KB — Sun, 22 Jan 2012 17:14:19 +0000

Whether you are just starting out in the car business or if you have been around since the good old days these are the 10 things every car salesman should know. Things have been changing in the car business very rapidly over the past few years, but these remain to hold true and probably will as long as we are selling cars.

1. Two People Meet and One Gets Sold.

When it comes to people and selling cars this is one thing that is always true. Somebody gets sold. Whether you sell your customer on why they should buy a car from you today or the customer sells you on why they are not buying a car today. What is it going to be? Are you going to sell your customer an automobile or are they going to sell you on one of their reasons for not buying now?

This is one thing to ask yourself every time you are with a customer and probably one of the most important things a car salesperson should know. Who is getting sold you or them?

2. They’re All Just Looking.

Of course they are all at the dealership to look at cars and nothing will happen until they meet a salesperson, but not just any salesperson it must be a car sales professional. They won’t tell you that they are here to buy a car they will tell that they are just looking and buying in the future, but if you are a REAL SALESMAN or SALESWOMAN you can sell them a car. Just looking is the car buyer’s first line of defense against the car salesman you can accept it or you can sell them a car, you decide.

3. Bad Mouthing Your Competitors Will Hurt More Than Help.

Don’t let yourself get caught in the trap of bad mouthing the competition because it will do more harm than good. You don’t know what they are thinking and you might even be insulting them without knowing it. Show them why you, your vehicle and your dealership is the best place to buy a car. I have seen many deals lost after a salesman talks trash about another dealership or brand. Your customer might be a regular customer at the dealer you are running into the ground for the past ten years and they just came by to see what you have to offer. Stay positive and show them what you have to offer and let them decide or you might be chasing them back to that competitor.

4. The Dumber the Better.

Use the selling system that you were trained to use to sell cars and don’t start thinking that you know a better way. This is the quickest way to see your sales drop. When you start leaving things out and short cutting the system you could be shooting yourself in the foot. Sales and training systems were designed to work throughout the dealership and be consistent. One step is made to work with the next and the one before. I will guarantee that you will lose deals when you start thinking you know better. Get back to basics and you will sell more cars.

5. There is Always More and F&I Will Prove It.

We have all had the customer that wouldn’t dump another dollar, but after they got done in F&I their payment went up 20, 30 or 40 dollars. There is always more, but when you believe that they won’t go another dollar think again. Maybe you didn’t show them a reason to spend more or provide enough value. Think about how bumping them another $100 will equal 20, 30 or 40 dollars in your pocket. If you don’t get it the F&I Department will.

6. Price Isn’t Everything.

Stop thinking that price is the only thing that will close the deal because that is not the case. Almost everyone is will to pay more when they see the value in something. Stop working the desk and start working the customer and provide more value. Many salespeople work the desk harder than they work the customer, but when you show them “What’s in it for Them” you provide more value and ultimately make more commission. This is something every car salesman should know whether they are a newbie or a veteran, but some times they forget.

7. “Be Backs” Won’t Be Back.

You may have heard this one a few hundred times, but that is because it is usually true so I will say it again: Be Backs won’t be back. They say they will, but what they are really saying is that my car salesman didn’t sell me on why I should buy a car from them and their dealership. They think there is more to be had somewhere else because you didn’t make them feel otherwise. They sound so sincere and they have numerous reasons, but that is their way of giving you the bad news. Granted they may visit another dealer and feel the same way about them, but if they meet a REAL CAR SALESMAN they will buy and a car and all the follow in the world won’t help. Once they tell you that they will “Be Back” your only chance is that they visit another dealership and tell them the same thing and then you have a remote chance with follow up if you something more to offer.

8. Enthusiasm Sells Cars.

Even the grumpy old fart that buys a car is excited about buying a new car, but they certainly aren’t going to tell or show you that. Car buyers don’t want the salesman to think they are excited about the prospect of driving home in a new ride, but they are and enthusiasm will heighten that excitement and engage more of their emotions. Being positive and enthusiastic about them having a new vehicle will only help you sell more cars and increase your commission. When people use their emotions to purchase a vehicle you are the one that comes out on top. Enthusiasm is an emotion and your ticket to sales and logic is the quickest way to a short deal. Be enthusiastic and upbeat with your customers and you will sell more cars and make more money.

9. The Sales Manager Wants to Sell a Car as Badly as You Do.

You might think otherwise, but it really is true. The sales manager gets paid based on sales and gross and they really do want to sell cars. When the desk or sales manager won’t accept your deal it is because they feel there is more room, the customer can be bumped or that the next person will pay more for the same car. It’s not personal they want to sell cars just like you do.

10. Buyers are Liars.

I left this one for number ten because too many salespeople like to use this for an excuse when they don’t make deal, but it is true in many cases. Talk to enough car buyers both on and off the car lot and you will find out that the average consumer thinks that lying to the car salesman is acceptable part of the game. Even that person that never tells a lie thinks that it’s not a lie, but part of the car buying process. Again this is one of the few things that the customer uses as a defense because they don’t want to be taken advantage of by a car salesman. Every car salesman should know that this is how the customer thinks and understand that they need to break down this barrier to what the customer thinks is acceptable. This is also where body language, tone and facial expressions are important when selling cars for a living. Most people are honest unless they are buying a car so they will usually give themselves away with their facial expressions and eye movement. Accept this fact, but don’t use it as an excuse for not selling a car.

These 10 things every car salesman should know are basic, but true nonetheless. They are many other things that you should know when you are selling cars for a living, but these will get you started or remind those of you that may have forgotten some of them. If you have some things that car salespeople should know please add them in the comment section below and I will publish them when appropriate.

Later, Fresh Up on the Lot

Back to Basics is thrown about the dealership all the time, but there is a lot of truth to it.

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Who Makes the Better Car Salesperson – Man or Woman?

KB — Sun, 08 Jan 2012 23:33:16 +0000

Take a look out on the showroom floor of any 100-car dealerships around the country and you would probably be lucky to find 75 car saleswomen. What was typically a profession that was once considered suitable only for a man is slowly changing, but it is changing. Ten or fifteen years ago you would have been lucky to find 10 women selling cars for a living at those same dealers and five years from now that number might triple or more. With that said the question that is being asked is who makes a better car salesperson? Is it a man or a woman? Ask an old school veteran and there is no doubt that he will say that a man would be a much better car salesman, but if you ask a woman that has been selling cars for years she will likely say that the woman can be a better car salesperson. So which is it?

Selling Cars – Male or Female

Some people today may say that a woman might have an even better chance of being a top salesperson if she had the experience, but others say that a man is better at negotiating. You didn’t think I would be stupid enough to pick one over the other did you? I have worked with women in the car business that were absolutely remarkable at their job and quite successful that included floor sales, F&I, sales managers, GSMs and GMs and I don’t think there is an answer. I have seen some women that were better than others and I have seen men that couldn’t sell a car if their life depended on it. Although I must admit that I think that a woman with the experience and the determination to succeed could do very well in every department at the dealership.

I really don’t think gender matters when it comes to selling cars professionally. The person is what makes the difference not their sex. Some say that the woman in a family makes the final decision when it comes to purchasing a vehicle so a woman would be a better choice, but I have seen men that can connect with women just as well as any woman. Others say that if the man is dead set against the purchase his other half won’t need to make the decision to buy. However not every customer is a couple. Buying a car is not a job best done by a man today like it was yesterday. I have sold cars to many women that were much tougher to deal with than most men.

Agree to Disagree on the Best Car Salesperson

This debate could go on forever. There may be pluses and minuses on both sides of the fence, but when it comes right down to it there are many factors and skills that make a top salesperson and I don’t believe that being a man or a woman matters. Whether you are male or female you likely have your own opinions on who would make a better car salesman or car saleswoman, but talk is cheap and the proof is in the results. So lets sell a bunch of cars, have some fun doing it and may the best car salesperson win.

Later, Fresh Up on the Lot

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Lookout for the Car Sales Staff Disease

KB — Wed, 04 Jan 2012 22:55:55 +0000

Has your car salesmen and car saleswomen been infected by this terrible disease? Are they sluggish and quick to qualify and broom their customers? Do they complain about taking Ups unless they believe they have a sure sale? Have they lost their enthusiasm? Do they complain about the lack of showroom traffic? Do they shortcut the sales process? They might have the dreaded Car Sales Staff Disease (CSSD). This disease is also very contagious and can be passed from staff members to newbies quite easily. The longer they have been in the car business the more susceptible they may be and especially if they have been selling cars since before 2008.

Reasons for the Car Sales Staff Disease

The car business has seen a huge amount of changes and events that we never thought would come to pass in these past few or more. From the credit crunch to GM filing for bankruptcy and Ford coming close to doing the same, the Big Three automakers closing and pulling franchises all over the country not to mention the lack of inventory at the Japanese dealers because of a tsunami and recalls for Toyota. Then lets not forget about the economy and the roller coaster ride we have seen in the Used Car Market. Wait there is still more like the increased impact of the Internet including Facebook, car dealer online reviews and social marketing. Buying more ad space in the local newspapers is not a guarantee that you will sell more cars anymore. This is more than enough to cause the Car Sales Staff Disease (CSSD) and it is not just affecting your salesmen it is also infecting your sales managers, general sales managers and the dealer principal.

Symptoms of the Car Sales Staff Disease

The Car Sales Staff Disease has an effect on everyone that works at the dealership. From porters to the GSM, GM and the dealer principal feel the pain when a dealership is not selling up to their potential. When the car salespeople aren’t closing enough sales the F&I department has less opportunity to sell services & products and the porters have less cars to prep for delivery. Pretty soon good sales people are leaving in search of greener pastures because of smaller commissions which can compound the problem and in turn create smaller profits which negatively affects the sales managers, the GM and ultimately the dealership owner. Everyone loses when this disease infects a sales staff.

Possible Cures for Car Sales Staff Disease

There is not any sure cure for the Car Sales Staff Disease. Each dealerships needs to be treated on a case-by-case basis starting with the GM and/or the Dealer Principal, because it needs to come from the top down.

Steps to Rid Your Dealership of Car Sales Staff Disease:

Upgrade, Overhaul or create a Professional Sales BDC Department.
Upgrade, Overhaul or create an Internet Sales Department.
Budget and Invest in Internet Marketing, Advertising and Leads
Embrace Social Marketing: i.e.; Facebook, Twitter, You Tube, Google Places and the many other places on the Internet that will bring your more business.
Encourage happy customers to submit reviews at Google Places, Yahoo Local, Dealer Rater, Facebook and Yelp to name a few.
Make videos of happy customers talking freely about dealership and post them on You Tube and your website.
Tell and show your sales staff what you are doing to help them sell more cars.
Reevaluate and examine pay plans and adjust accordingly.
Retrain your staff to work with today’s car buyer.
Refresh and Reevaluate your sales process.
Consider more spiffs and performance bonuses for your sales staff.
Update Your Birddog Program accordingly if needed.
Update Your Pay for a “Mini”.

These steps should take care of most cases of the dreaded Car Sales Staff Disease (CSSD) help you get back on track, but there could be a holdout or two and then eradication is the only alternative. There is no room for a negative attitude in the showroom today and such a presence could cause a relapse.

Car Sales Staff Disease Summary

Selling cars for a living is much more than a quick walk around and checking credit. It starts with a positive attitude and a commitment of everyone that works at the dealership. The car business is not going away at the dealerships that are around today need to change with the times, we have done it before and we will do it again. The above changes are exactly what are needed to make selling cars for a living fun again and fill our pockets, which is why we are here in the first place. We shall overcome.

Later, Fresh Up on the Lot

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Mavens, Mooches and Shoppers – A Car Salesman Nightmare

KB — Thu, 22 Dec 2011 18:11:42 +0000

Everyone’s had their fair share of mooches, mavens and shoppers when it comes to selling cars for a living, but that’s just part of being in the car business. Nobody wants to spend a couple hours showing somebody cars and going for test-drives with a person that’s not really ready to buy. In a perfect world everyone would come onto a car lot, buy a car and drive it home, but unfortunately it doesn’t work that way.

I usually try to keep things upbeat and positive, but there are those days when your Fresh Ups consists of mavens, mooches and shoppers the car salesman’s nightmare. Those are the days that make you wonder why you ever got in the car business. Don’t get me wrong I’m not here to rain on anybody’s parade because I love selling cars, but every once in a while I thought it was a good idea to be honest about what it is like being a car salesman. As with all jobs no matter what your career choice might be there are some negative aspects of your job.

The Car Salesman and the Mooch

I want to give you a realistic view of one of those days because you will have them too, and I want you to be prepared for those days. Fresh out the box you get a fresh up and you think this is a great way to start the day. Then you find out that they have come from a town that is several towns away from yours. They are looking for a new vehicle. They haven’t really settled on a trim level or color but they know what kind of car they want.

You go through the whole dog and pony show and finally settle on a car, take a test drive and sit them down at your desk. But then it all comes out, they have been to several dealers and have prices from all of them, but they still didn’t buy a car. They want to buy your car for several thousand dollars less than invoice. You stay positive and work them with all your might while keeping your composure, but they won’t budge off of that unrealistic number. To make a long story short you know what happens after that and your first mooch of the day is out the door.

The Maven the Buyer and the Car Salesman

Ok, shake it off because it happens to all of us, just move on take your next customer. Then you come across a young couple on a lot looking over your new cars and give them the meet great. You assumed they were a couple, but they are a brother and sister. She wants to buy a new car and he (the maven) is here to help her so she gets a good deal. Once again you put on your happy face and do your walk-around, test drive and dealership tour before you set them down at your desk. Now it’s all about the numbers and she is no longer in control, but her big brother is and he is determined that she gets a fantastic deal on her new car.

It’s not his car or you would’ve been done a long time ago, it is for his little sister and he needs to show how good he is at negotiating. She’s excited she can’t wait to drive her new car home. However her brother is in no hurry and is determined to get her car for less than invoice. Round and round you go before you know it hours have passed and the maven is still talking crazy. The scenario has only 2 possible outcomes, one is that they move on to torment another dealer and salesperson or you finally do sell them a car and your car salesman is commission is a mini. However, it is very possible you don’t sell anything and you are back out on the lot looking for a customer.

A Shopper and a Car Salesman Meet

Here is a “Fresh Up” standing next to a new sedan on the lot with his folder full of paperwork neatly tucked under his arm and you start all over again. Only this customer wants more than a walk around and a test drive, he wants to know more about this car than the manufacturer knows. He has spent hours online researching his next vehicle and still wants more. Then he proudly tells you about how he is not going to buy until next month and is only researching several vehicles. You grind him, grill him, offer discounts and do everything you can think of only find yourself eventually giving him your card and thanking him for coming in today.

Reality of Being a Car Salesman

I have had days like that and I am sure you have too. You worked you butt off and did everything you could think of to sell a car, but all you ended up with was a “Hat Trick” of mooches, mavens and shoppers, a car salesman’s nightmare. My objective was not to be negative, but this can happen to you when you sell cars for a living. This is a very realistic possibility if you’ve been selling cars long enough, but it doesn’t happen every day it just happens once in a while. Then at the end of a day like this you realize that you’ve worked all day and didn’t make a dime. Call it a day and start over tomorrow. Forget about today and hit the ground running tomorrow …you are a Car Sales Professional and it just comes with the territory even when you earn a six figure income selling cars. Attitude is everything in the car business so make sure you have a good one.

Later, Fresh Up on the Lot

Did you read the book, the Car Salesman Guide?

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Objectives of the Car Dealer BDC

KB — Sun, 18 Dec 2011 19:56:21 +0000

The primary objective of the car dealer BDC is to get them in the door because they can’t buy a car over the telephone. People that call into an automobile dealership are looking for information, it could be questions about service, it might be about your store hours and it might be about a particular car that they are looking to purchase. Here at CarSalesProfessional.com our focus is primarily about the person that wants to buy a car.

When they call into the dealership and they ask questions about a certain vehicle or if they are looking for a particular trim level, model or color it is because they want to make a deal. They are no longer in the shopping mode, but they are in the buying mode. The way that the BDC handles those particular phone calls can make the difference between getting a customer in the door and the opportunity to sell them a car or send them to a nearby competitor.

The Car Dealer BDC is Part of the Marketing Chain

The car dealer BDC needs to be much more than a receptionist that answers the phone, they are the next step in the marketing channel that creates the need or desire for the customer to come to your dealership. Car dealers spend untold thousands of dollars each and every month on marketing of all types. Whether it is print advertising, radio, television or Internet marketing and all of this advertising is designed to get the customer into the dealership or at least call the dealership. When the potential car buyer calls in and the call is handled poorly the potential loss to the dealership, not to mention the car salesman or car saleswoman working the floor could be anywhere from a couple hundred dollars to several thousand dollars.

Having a trained and professional person answering the sales phone is absolutely critical today. Having an enthusiastic BDC team member with a positive attitude can make a big difference in the bottom line. Whether you realize it or not the potential car buyer that is on the other end of the phone is either qualifying you or disqualifying you as a dealer where they want to spend their hard-earned money. The wrong attitude, the wrong answer or an unprofessional demeanor will cause that potential customer to call the next dealer.

Sales BDC or Dealership BDC

Some dealerships operate their sales BDC department along with the Internet Sales Department and others combine their receptionist with their BDC department that handles service parts and sales. In my experience I have found that a BDC department that primarily handles sales or one that works with the Internet department is usually the most effective. When the sales department BDC or the Internet department handles incoming sales calls they are usually better equipped and better trained to get the customer into the showroom. These departments typically have incentive programs and pay plans that reward team members for making appointments and getting customers to show for their appointments.

Second to having the potential car buyer in the show room is the telephone and when the person that answers that phone has a smile in their voice, the knowledge, experience and people skills that are required for a good BDC representative the chances are that customer will show up in your showroom. This is the way that today’s automobile dealership creates floor traffic and ultimately car sales. I am not talking about being helpful in answering every question in detail including the ones that will cause them to seek out another dealership, but being helpful in providing the right amount of information without causing the customer to look elsewhere.

The Effective Car Dealer BDC

Internet leads are great and represent potential customers, but when the customer calls into your dealership it is because they have chosen you. So handling them and their request for information properly can make or break the automobile dealer in the long run. It all comes down to getting them in the door so your sales staff has the opportunity to (Earn Their Business) sell them a vehicle. After all the current statistic tells us that 85% of car buyers today purchase a vehicle that is somewhat different than the one that they were planning on buying. Most of that 85% is based on the color of the vehicle so why would you turn someone away simply because you might not have a certain car in a certain color. I’m not talking about the car dealer BDC lying to a customer because that will usually come back and bite you, but I am talking about talking to customers and giving the potential car buyer reasons to visit your showroom.

Later, Fresh Up on the Lot

The BDC or Business Development Center

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