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Monday, March 25, 2013

Car Salesman Confidential: The Needs Analysis

I once had a customer say to me “A salesman is a guy who tries to get me to buy something I don’t want and then talks me into paying too much for it.”

I told him that if that was my definition of sales I’d quit my job right then and there and start flipping burgers somewhere. Nothing could be a better prescription for frustration — and ultimately, failure — than trying to get somebody to buy something they don’t want, and trying to talk them into paying too much for it.

The way I view sales is the exact opposite. My role as a salesperson is to find out exactly what you want, and try to sell it to you for less than what you expected to pay — while making myself a little money in the process. Why, you may ask, am I so nice? For one simple reason:

It’s easier to sell a car that way.

Think about it. If you tell me the most you’re willing to pay is $20,000 “out the door,” why would I show you a $25,000 car — and then try to talk you into paying seven grand more than you want to pay… or convince my manager to take seven grand off the price? Just because I like a challenge? Noooo, not me. If I’m smart, I’m going to show you a car that I can sell you for $18,000 — $2000 less than your maximum — because that way I remove your main objection — price. And when I remove objections I have a greater chance of success.

If you tell me your budget is $350 a month, I’ll first find out if there’s any flexibility there (because a $350 payment on a new car is tough to reach these days), and then I’ll show you something that I think I can get you for $250 or $300 a month. I’m not going to show you something that I know comes with a $500 a month payment. It’s a total waste of time.

And it’s not because I’m such a nice guy, or because I’m being altruistic and trying to save you money. I’m doing it for purely selfish reasons. The fact is, I don’t get paid unless I sell a car. And the easiest way to sell a car is to give people what they want and make it easier and more affordable than they thought it would be to buy it.

Is this magic? No, it’s a simple process that goes like this. A couple comes onto the lot, parks, and introduces themselves. They tell me they’re in the market for a new car, but they’re not necessarily planning on buying today. They’ve done some research but they’re not entirely sure what they want. I say “Great!” and invite them into my office for what’s called a “Needs Analysis.”

Needs Analysis is just a fancy term for finding out what you want. During the Needs Analysis I’ll ask you a bunch of questions designed to help me find out which vehicle I have on the lot best suits your unique needs and financial situation. It’s a little like a tailor taking measurements before he makes you a suit. Now, you could go out there and try on twenty or thirty suits (or dresses) until you found the one that fits you… which is the way most people approach buying cars. But why do that? That’s the hard way. Why not use the tailor’s expertise instead and cut the time in half?

Some questions I might ask you are: Why are you in the market? Who will be the primary driver? Will it just be you in the vehicle most of the time, or do you travel with a bunch of grandkids or a girls’ soccer team occasionally? How do you intend to use the vehicle? For work, or just basic transportation, or both? Do you do most of your driving in town, or on the highway? How important is fuel economy? Performance? Safety? Do you want leather or cloth? Stick shift or automatic? And so on.

Now, a lot of people bristle at questions like this. First of all, they refuse the invitation to come inside. They don’t understand why you’re asking them into the dealership and they think it’s a trap. They prefer to stay outside in the parking lot, where they feel safe, and roam around the inventory on their own. While I can understand this, you’re actually making it more difficult to find a car. The process I’m trying to engage you in will save you time and energy, and help you find the right car in less time and with less hassle — if you let it. But you have to have a little trust in your salesman.

Bear in mind: I am not trying to trick you into a premature commitment to buy. Nor am I trying to lock you into a payment. When I ask you “What are you paying on your vehicle now?” or “What’s your monthly budget?” I’m not planning on taking that number and doubling it, or tripling it. I’m trying to narrow your available choices down to a manageable size.

At the dealership where I work we have more than 800 vehicles, new and used, in our inventory at any given time. The Needs Analysis will allow me to find the two or three vehicles out of that vast, confusing, sometimes overwhelming sea of vehicles that meet your requirements. If I can do that, the chances are greater that I’ll have a sale and you’ll leave in the car of your dreams.

And here’s a critical point: Not only do I want you to leave in a car today, I want you to be happy with it for the next four or five years. Because, number one, trading out of a new car is extremely difficult, and two, I want you to come back to me in the future. I am not here to “tear your head off” on one sale. I am here to sell you three, four, or five cars over the next 10 to 20 years. Every good salesman knows the best way to insure repeat business is to treat the customer right the first time.

Once I finish the Needs Analysis I’ll usually confer with my manager for a few minutes, then go out to the lot and find the vehicle that I think fits your needs and your budget, and drive it around to the front of the building so you don’t have to do any walking. If I’ve done my job correctly — and if I’m lucky! — it could turn out to be the vehicle you drive home in that day. Or it may not. It may take two or three tries before we find the right vehicle. Or we may not have the perfect vehicle on our lot at that time, and you’ll have to continue shopping. But when you leave, not only will I have a better understanding of what you’re looking for, so will you.

Now, it sometimes happens that the best laid plans of mice and salesmen go awry. Sometimes, after my customer and I have settled on a car that meets their requirements and appears to be within their budget, something unexpected happens that messes things up. Like poor credit. Or a payoff on their trade that’s higher than what they figured. Or maybe the customer decides they can’t live without leather and a sunroof. These things can upset the equation and result in a price that’s higher than expected. But it’s not by design. As a salesperson, I will never try to drag you, kicking and screaming, to a car you don’t want and try to force you to pay more for it than you’re willing to pay.

And if you humor me and go along with my Needs Analysis, you may find that shopping for a car isn’t always the nightmare people think it is!

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