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In this blog, I would like to talk about a new approach to your sales calls that will pay you more. Who doesn’t want that?
Drivetime, Carvana, CarMax. We all know these guys as companies that buy cars. Some even built their entire business model on simply buying your trade. But here’s where it gets really interesting, these guys aren’t just buying cars directly from consumers. They are also selling them. A lot of them. Some of these guys are breaking records, but it’s not because they’re any better than your dealership. It’s not because they get better leads, have better facilities, or have more knowledgeable salespeople. Nope. They’re getting more people in their doors because their push isn’t to sell cars, it’s to buy cars.
According to an Automotive News article from June, “CarMax kept up its efforts to source cars and trucks directly from consumers and dealers, sourcing about 362,000 from that group in the first quarter. That’s 6 percent more year over year for the same period. This enabled CarMax’s self-sufficiency to stay above 70 percent. They were able to capture even more trades, despite the changing buyer’s market and it yielded more profit per vehicle in the end. What they are doing is eliminating the entire stereotype; that very fear that almost every shopper has of being pushed into overpaying for a car. They’re winning because they’re able to get in front of these prospects without using traditional sales tactics. They will gladly remove the entire purchase out of the equation and just buy your car outright if that’s what you prefer. And that’s precisely why they’re attracting more shoppers. Consumers will go to them just to sell their cars and then end up buying a car. They’ve completely flipped the switch on traditional retail car selling strategies and they are capitalizing on that pressure-free, haggle-free sales experience.
Buying from consumers: A great way to make more profit per vehicle
We recently had the opportunity to train a salesperson in Savannah, Georgia. His name is Abraham Perez and he’s been in sales for a few years now, most recently as an internet manager at a Step One Automotive CDJR store. He loves our training program for sales calls and anytime our trainers visit his group, he is one of the first to show up to class, sits front and center, and is always very coachable. He is always looking for ways to improve his sales skills. Abraham has mastered our word tracks and implements our trade hook strategy on every sales opportunity he gets. It has paid off tremendously. He has prospects bringing in their trades left and right. He’s buying great merchandise directly from consumers and some of those prospects are even staying to buy. He’s bringing in some great used car inventory that his dealership uses to replenish their used car supply and switch cars. And other vehicles that don’t make it to the frontline can be leveraged for great wholesale profit. Do you think Abraham is also making some extra cash? You bet he is. Take a peek at his oversized checks on his social profile here. Imagine having a team of Abrahams on your sales floor!
It’s time to think outside-the-box
The most successful sales teams in this industry are changing their sales process and they are seeing the benefits. According to a recent Automotive News article about Volkswagen of Marion in Illinois, some are even changing their entire sales approach with each new shopper. When working with prospects, your goal should be the same. You should be asking for the trade every single opportunity you get. When you take that expected pressure off of the purchase and get excited about seeing a customer’s car, you’ll quickly notice a shift in the conversation and the tone of the call. Some shoppers are so personally connected to their cars, they’ll try to sell you their trade right over the phone.
If you also have KBB ICO, or any sort of buying program, great. Put it to work. If you can manage to get prospects in to see you, that’s a home run today. Sadly, most reps simply don’t ask for the trade. And if they do, it’s just an afterthought. No excitement. Alan Ram used to say, “What most people are trying to determine on that first conversation is if it’s worth coming down to your place, or not. It’s that simple.” And it’s so true! It’s all about letting them know that it’s more than worth their time.
To reap the benefits of bringing customers in on trade: Train!
If and when you’re able to get customers to come to your dealership physically, that is the best scenario. Even if they’re coming in just to “sell you their car”. Once a customer sets foot on your lot, you know how it goes. The entire car shopping experience changes, it goes from a logical experience to one of emotion. They see the cars, then might ask to drive one since they’re already there. They get excited because you’ve gotten them excited. Next thing you know; you’re sitting down talking numbers.
Here are some other great benefits to being the buyer and bringing customers in on “trade:”
Be the buyer and give your prospects additional reasons to come in and see you. And don’t wait until everybody else is doing it. Invest the time today and train to perform better where it matters most.