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Car Salesman's Seven Steps to Sale
Almost all established sales organization will have their salespeople follow certain steps to increase the likelihood of a sale. Many companies have these steps in place to provide an outline for their sales staff. However, almost every car dealer will employ the following seven step sale process. These steps have proven to work for decades and at most dealers they are enforced as the law of the land . The seven steps are not only used to keep the customer on track but are performed in a certain order to produce a "same day" sales opportunity. As a customer, it is important to recognize these steps and it is necessary to know when to stop the process. Knowing what is going to happen next is a key element of this guide. If a customer understands these steps, they will reach a successful outcome more efficiently. Of course, because every dealer is different, these seven steps are performed in varying degrees of intensity. Never the less, they exist in almost every car dealership in the United States. Instead of the customer trying to avoid these steps, this guide is designed to allow the salesman to go through them, albeit, not on the first visit to the dealership.
Step One: Meet and Greet - Salesman's Goal: Establish Rapport and Control. This step is designed to welcome the customer to the dealership and to allow the salesman to introduce themselves. However, the salesman's primary concern is to establish control of the process.
Most of the time, customers will try to avoid talking to a salesman and will maintain a defensive posture. Almost always the when greeted by a salesman the customer will respond with "I'm just looking". Keep in mind, the management requires that every customer be assisted by a salesman. This philosophy is paramount to dealerships. Every customer must be properly greeted upon arrival. If a salesman greets a customer that is "just looking" and doesn't properly engage them, they will run the risk that the customer will buy a car somewhere else. Even worse, they may buy from another salesperson at their own dealership.
During this step, the salesman is instructed to establish rapport with the customer. Rapport is extremely important and without it the salesman knows they have a slim chance of selling a car. This is why salespeople are sometimes viewed as phony, because during the ‘meet and greet" they are quickly attempting to find some common ground. The next challenge for the salesperson during the "meet and greet" is to get the customer to reveal a "need". Once a customer expresses what they are looking for, the salesman can proceed with satisfying that request.
Step Two: Qualify - Salesman's Goal: To "land" the customer on vehicle.
The second step in the salesman's process is to determine what the customer would like to buy and then find a suitable vehicle in their current inventory. This may seem like a minor step in the process but it is a very important one. If the salesman doesn't qualify the customer properly, their efforts will begin down the wrong track.Salesmen are instructed to "walk and talk". Good salespeople will always have their customers following them through the dealership, whereas, the "weaker" salesmen will be following the customer. Many times this is where the salesman will establish or lose control.
The salesman will try to "land" the customer on a car simply by showing the customer the dealer's inventory. However, on some occasions salespeople will try to steer the customer toward a "Spiff" car. When a salesman sells a "spiff" car they will receive an extra bonus. Salesman love "spiff" cars, not only because of the extra commission but they are usually a quick and easy sale. In the event a salesman does not find a car for the customer, the management will instruct the salesperson to "Turn" the customer to a new salesperson. A "turn" is often mandatory because the dealer wants to be certain that they have had every opportunity to sell a car. They believe that a change of personality will enhance the possibility to move to the next step.
Step Three: Walk-Around - Salesman's Goal: Demonstrate the features and create obligation. The better salespeople will almost always have a method to their "walk-around". For instance, if the car is a row of vehicles, the customer will "spot-light" the car by pulling it out of the line. This extra effort will almost always provoke the customer to say "don't go to any trouble", this is because they don't want to feel obligated to the salesperson. Of course, that is exactly what effective salespeople are trying to achieve. Often, the salesman will begin the "walk-around" on the outside of the vehicle and initially prevent the customer from sitting in the driver's seat. They will first demonstrate the trunk space, engine compartment and exterior features. Salespeople realize that the customer's first impulse will be to sit behind the wheel. Therefore, they will not let the customer sit in the car until they have created some desire. When they reach a Point to demonstrate the interior features, they will have finished their exterior "walk-around" right next to the front passenger door. They then ask the customer sit in the passenger seat and they will sit in the driver's seat. This is by design and used to maintain control. (Still, the customer has yet to sit behind the wheel.) By performing the "walk- around" in this manner they are now in the perfect position to begin a test drive.
As matter of fact, "Strong" salespeople will never ask the customer to take a test drive. They will simply drive away with the customer seated in the passenger seat. When the customer finally gets to sit behind the wheel, they will be at the next step: the test-drive.
Step Four: Test Drive - Salesman's Goal: Create "Ether".
The Test Drive is the fourth step in the sale process. The salesperson will almost always inform the customer that the dealership's insurance policy will require a dealership's employee to drive the vehicle "off the Lot". In reality, salesmen say this so they can maintain control and then drive to a location that will enable the customer to have longer more effective test drive. If the customer begins the test drive from the dealership they will usually only drive a short distance because they don't want to feel obligated to the salesperson. Salesmen know they can increase their odds of a sale if the customer takes a long test drive. Also, salesmen are instructed to be aware of the customer's "hot button". This is something that the customer has expressed interest during the "Walk-Around", like performance, safety, and comfort. Salespeople will generally insure that the test drive will highlight the customer's "hot-button". For instance, if the customer has concerns about safety, the salesman will make sure to have the customer perform a "brake-test. Or if the customer is interested in performance, the test drive would include curvy roads and a freeway. The vehicle should create the "ether". However, without a properly crafted test-drive route the customer may not really experience the car and then have a desire to buy. Once the customer arrives back to dealership the salesman must now attempt to get the customer to commit to buying today. To do this they perform the fifth step: the "Write-Up".
Step Five: Write-Up - Salesman's Goal: Commit the customer to "buying today".
The "write-Up" is the fifth step in the salesman's process and it is a critical stage in the sale. The "write-up" is when the salesperson attempts to commit the customer to "buying today". This is usually accomplished though a "Four Square" (the Four Square is a method of calcualting the customer's offer). The dealer believes that the best time to get sell a car is after the test drive. The customer is excited, "in the Ether" and imagining themselves owning a new car. At this Point, the salesmen will present the customer with the relative cost, payment and down payment in an effort to get the customer to make an offer. Because the salesman's goal is to have the customer to buy the vehicle today, they use the "four square write-up" to present the customer with what it will cost in three parts. The three parts are: the trade-in, down payment and month payment. The other component is price. However, the salesman will try to avoid negotiating that element. In each part of the four-square, the salesman will present the customer with the cost and then attempt to get the customer to submit an amount that they would pay. Once the salesman has received the customer's offer, they will ask if they would buy the car today if the dealership would agree to their terms. Of course, the salesperson is not committing to sell the vehicle for that amount. They will phrase it to the customer as a contingency. For example, they might say "Not saying it is possible, but if I could sell they car for that amount with this payment would you buy today?"
Once the salesman has a committed write-up they can move to the next step, The Close.
Step Six: Close - Salesman's Goal: Finalize the deal. The "close" is the sixth step in sale process. (In Chapter Four of this guide book we will go in to the detailed techniques dealers will use during this process.) The close is when the salesperson finalizes the deal with the customer. This is either preformed by the salesman or by a "Closer". (Remember, the closers will describe themselves as Managers or Assistant Managers). The close is simply the "back and forth process" of offers and counter offers. The dealer's goal is to get a "Bump" in payment, price and down payment. Also, they will attempt to find an agreeable value for the trade-in. Dealerships know that no matter what the offer, they must make the customer feel like they are getting a great deal. Often they will perform some "Play-House-90". In other words, they will act like they are having a difficult time selling the car at such a low price. There are many closing techniques. However, the most common relies on the customer making some sort of compromise or "meeting them half way".
Once the deal is made, the customer will go to the Finance Office to sign all the paperwork. Keep in mind, the finance office is another profit stream for the dealers. Once the customer is out of the finance office the salesman will move to the next step: Delivery.
Step Seven: Delivery - Salesman's Goal: CSI and Referrals. The Delivery is the seventh step of the salesman's process. This step is often overlooked by the salesman because they have already closed the deal. However this step is done to religiously by experienced salespeople. During the delivery, the salesman will explain all the operations of the vehicle. Describe the maintenance required and familiarize the customer with the service department.
Salespeople that perform this step usually have fewer customers that suffer from "buyer's remorse" and will want to return the car the next day.
Also, they can improve their CSI scores by spending time to familiarize the customer with every aspect of the vehicle. Of course, some salesmen will use this opportunity to "coach" the CSI score, (see the article on CSI here).
Most importantly, skilled salespeople will use this delivery step to solicit their customers for future referrals.
After reading and understanding these steps you will be amazed by how many salespeople will strictly follow them to the letter. Keep in mind, it is important to know of these steps so you can use them to your advantage and control your time at the dealership.
About the Author
Otto Hoopdi
Car Buyers Guide
www.hoopdi.com
Why wont Charlie Rangel step down from his Ways and Means chairmanship? Why is congress full of Hypocrites?
Charlie Rangel was found not to have reported over a $1 million in possible tax income to the IRS. Why is he still Chairing the Ways and Means Committee and why wont he step down?
If the average American was found not to have reported a large sum of income knowingly such as Charlie, we would be in prison and paying interest on out taxes. Why isn't Charlie getting the same reprimand?
Why is congress full of Hypocrites both Democrats and Republicans?
That's why I'm a supporter of the Rangel Rule, where one can pay back taxes only and not the interest and penalties, much like Rangel, Geithner, and Daschle.
How to fire a congressman
