When Words Matter
/
What we Say and How we say it matters when it comes to presenting the numbers in the close. Closing is the conclusion of our sales process, and what happens in the next few minutes is going to determine if we win or lose. If we win, everything that makes our world go around happens. If we lose, nothing happens.
Nothing about our sales process is brain surgery, but because of the short sales cycle on a high ticket item, it is disciplined. So Vocabulary matters. Some words we say can teach/encourage the customer to negotiate while others can lead to the perception that the numbers are firm.
First things First - Attitude/Persona
When desking a deal, I always used to insist that we ask for it all the first time out. How the customer reacted told me immediately if the car was sold or not. If the vehicle was not sold, I had two bad options.
- Begin the race to the bottom by compromising my price and profit.
- Start the sales process over and hope we could keep control.
So before one can present the numbers with any level of confidence/persona, make sure you earned it first. Then show the numbers in a sober, no-nonsense business-like manner.
Vocabulary
Price - Nobody pays sticker price!
Never ever ever ever say List Price, Sticker Price, Asking Price. I don’t even like Market Price.
say “The Price is...”
Which sounds more negotiable? Which sounds firm? If the price on a gallon of milk said asking price or even retail price what would you assume?
If you are afraid of a “NO” reaction, see my previous post.
“Give you for your trade”
Give always sounded too cavalier or casual to me. “If you can give me $10,000 - just give me more..” Selling a car, you collect money or like kind, and that is the trade. It replaces cash. So that makes us a check writer/buyer.
say ”We are prepared to pay you.”_
Which sounds more firm and no-nonsense?
Down Payment
Here is where most customers are going to end up, and that is a good thing. I would rather negotiate terms than price.
If you have a strong desk and I hope you do, this can be a significant number. Analyzing deals we noticed that usually, the best down payments meant the best deals. More substantial down payments cover a multitude of sins.
- Negative Equity
- Help a bank approve marginal credit
- Lower the monthly payment
- Allow shorter-term loans - Faster trading cycle
- If all the moons line up - Better Commissions
If this is a significant number and the customer objects, you are just showing the customer the best way to buy the car, but you have to recover still. You cannot let the customer think you put them into the roof for shits and grins.
Empathy - “I understand that is a lot of money and frankly I would have a hard time affording that myself. If you cannot do this number what were you thinking?
Whatever the answer - “Can you be at all flexible on this if I need it to put your deal together?”
Whatever the answer - cross off the big number and Write their number down.
Payment
This is what most customers see first. Whatever numbers came before, at the end of the day they care about this one the most.
If you have a strong desk and they have confidence in your sales ability, this can be a significant number also. I always liked to quote a shorter term than longest available to leave room to roll term once we established the customers real budget number. Most times the first number they tell you is designed to make you hump in negotiations. If you ask for a higher (Much Higher) number on the first pencil, the customers bump themselves and tell you the truth. This can save a lot of trips to the desk.
Again you have to justify why you asked for the higher number. If you move the payment hard and fast, this could lead to customer resentment.
“This is shorter term financing, and we are just trying to show you the best way to buy the car. If you cannot do my number what were you thinking?”
What Ever the Answer - “Up to?”
Cross off your number, write down theirs, have them ok it and get to the desk.
Signature vs OK
Asking the customer for their signature or to sign here can make them tighten up. They just told you their terms, and you wrote them down. So this is their deal, and they should be happy to commit. However, signature or sign can be synonymous with - call your lawyer in their mind. This is not a legal document anyway. It is not like they sign, get up and run out of the showroom and we can sue them to come back and buy the car. All this write up is, is a written commitment based on a verbal agreement. They are going to sign when they go to the business office. All you need now is their
”OK”
When No Words Matter!
Once you asked for the “ok” - Lay the pen down and SHUT UP....
You talk before the customer does and you lose. If this awkward, dead, painful silence goes on, it means the customer is having a hard time thinking of a reason to say no. WAIT...
I hope you found this helpful. Have a great, fun week selling.
