Originally posted by Nsxotic:
If you offered me $10 for my tie that costs me $9.95, I could do the deal. But is it the deal I want to make? No. So, I'll ask you for $13.
I understand this simplified example, but there are so many other factors involved in an actuall deal on a car that I feel like your black/ white example is missing the
enormous fields of grey that are associated.
For instance, do you have any "hold back " on the tie? How about "Dealer cash", or "incentive money". Is your cost really $9.95 if we consider these things? And don't get me started on rebates.
The fact is that the automotive industry has turned the car dealer into a scapegoat. Think about it, your primarily dealing with the little guy representative (The Dealer)from a billion dollar industry. Does that dealer make a billion a year? No he does not, but we as consumers associate one with the other.
Since we make this assumption we also feel entitled to releive them of any and all profit, but as Nsxotic eloquently points out, the dealer is not in business to give away all his profit.
As for the accusations of Salesman being pathological liars I submit this; When I sold cars, and finance I was called a liar more times than I care to remember, even though I was representing the truth in every aspect of a deal. Many times the customer would not accept the truth, and would in fact lie to get an answer they wanted ie: "I can get this for (insert fantasy number here) over the state line, but I want to deal with you...yada, yada, yada.." when in fact I have a friend that manages at said dealership (we all meet at factory ride-and-drives people...) and the deal there was the same as the deal I am offering...
THAT IS A LIE people, that is someone misrepresenting the truth for their own benefit, and in this case it was the customer. It happens every day at every dealership.
Where the industry has made villans of dealers is through the over complication of the financial relationships made in every deal. The "Behind the scenes money" that is known as "Holdback" that customers now think is part of the profit available for the taking in negotiations. When the dealer won't give it (they use that money for floor plan) The customer walks and tells the whole internet how badly he/ she was treated. Rebates have created suspicion about how much dealer cost really is, even though those numbers can be easily accessed via the internet.
I submit that it is the way that we consider dealerships that causes the whole debate. A little research on your part exposes liars, and vice versa. I also submit that if consumers want honesty, then they should give honesty.
If they think they have a happy customer, they'll take the short deal.
When in sales I managed a 99.9 CSI score. I tried to make the experience fun, I put minds at ease, I dealt with people as I wanted to be dealt with. I also turned away customers who would buy, but not be satisfied. The reason was this "I don't need the headache". If a woman came in with a chip on her shoulder because she was a "woman trying to buy a car". I would walk her around her favorite model in detail, then I would explain that I was happy to show her all the factors a consumer should take into account when buying a car, based upon the reaction I got, I knew how to proceed. If the customer went hostile, I turned her over to Carol (our female senior sales associate)And split the deal. Carol and I had an arrangement, and it worked out well for both of us. If someone gave me a "hard time" I turned them over to the assistant sales manager, since that is who they really wanted to deal with anyway. A turn over ment slim deal, small commission. I had no problem with that, as long as I ended up with happy customers, and a good survey. Don't get this post wrong, I did the majority of my deals right from my own desk, where I kept lists of invoices on every model we carried, I worked with the customer based upon actual cash value on their trade, and percentage of allowable profit over invoice.
There were a lot of smiles in my office, and I have photo albums of pictures of happy owners with their new cars. I can tell you, if the customer was there to have fun, and buy a car they wanted, I was going to sell it to them. If a customer was predisposed to anger... forget it, not worth the effort, or the sacrifice, because as Todd says CSI is where the money is, not profit per unit.
Phil
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