Ziegler Supersystems, Inc Automobile Dealership Success Plan

Sales Manager Training - F&I, Menu Training - Automobile Dealership Consulting - Dealership Support

“15 POWER NEGOTIATION TECHNIQUES”
by Jim Ziegler

Do you want to hold high average gross profit per unit while maintaining great customer satisfaction…without losing a single deal?  Of course, who wouldn’t?

There are several cornerstone procedures that will always assure maximum profitability in any negotiation.  Just knowing what they are is only part of the equation…you have to have the discipline and the personal ethic to manage sales people through the process.  In my seminars, it takes 18 hours to teach these principles in depth, but I am going to make an effort to give you a thumbnail sketch in this article that may give you some ideas...

1. Every deal starts at all of the money…all of the time.  This is the key principle; actually it is a philosophy that drives the entire equation.  You can’t make gross if every deal starts with a discount and then negotiates downward.  Sales people blow most gross before the deal ever begins. ( Ultimate Professional video series )
2. You can’t hold gross profits if your sales people pre-qualify the customers out on the lot.  The biggest single thing that blows deals and profits is premature discussion of the figures with customers by sales people.
3. The entire dealership must adopt a philosophy that “Full price is a fair price”.
4. Every deal starts at the desk…no exceptions.  Dealerships with low gross profits allow the sales people to start the deals with a customer counter-offer.  Never start with a customer offer to the dealership.
5. Never ask a customer to tell you what their budget is.  This limits your ability to negotiate.  “It’s not what they want to pay that is as important as what they are able to pay.”  The first payment they hear should come from the sales desk as a proposal to them.
6. Never ask a customer how much down payment they are thinking about putting down. ( Customer Proposals ) During the negotiation you (sales person) say(s)…“Mr. Customer, as you are aware, most banks require a minimum of 20% down payment for preferred financial plans, so I will need a check from you today for $4,552.00.”  The idea is to introduce the amount first.  Down payment is the key to profitability.  Show me a dealership with weak grosses and I will show you a dealership where the down payments from the customers are weak.  The average dealership gets less than $250.00 per unit (real cash, not rebate) from finance customers.  My dealerships are averaging more than $1000.00 (true cash down) per finance deal average.
7. Do not negotiate on trade difference if the customer plans to finance with you. Whether it’s conventional finance or a lease, if they’re getting the money through dealership sources, you should be negotiating on payments and down payment only.
8. Never ever negotiate on driveout price (out-the-door or bottom line figures).  This is absolutely the weakest and least profitable way to work a deal.  Usually this type of negotiation is performed by “Old Car Dogs”.
9. Always pull a credit bureau before you serve up finance terms, rates or payments. Qualify and quantify your customers’ credit before you ever talk finance…No exceptions.
10. Always react to the last figure you sent to the customer.  Do not try to get close to their number on the second pass.
11. Work through your sales people…do not work for them.  You will create a gang of wimps and weaklings if you have to jump off of the desk and close every deal.
12. Ask questions at the desk before you pencil the deal.  Always make sure the sales people have driven the car with the customer(s) and that they have not committed figures or payments.  Be sure the sales people have followed the Road to the Sale before figures are served.
13. Always rehearse the sales person at the sales desk.  Make them say back to you what you told them to say to the customer.
14. Never show the customer your invoice.  This is weak and makes me gag!
15. Use “Trade Reconditioning Itemization” as a tool to “Devalue” the trade while negotiating with the customer. ( Customer Trade In Evaluation Survey )

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Upcoming Seminars
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      Sales Manager Forum

• November 16 & 17 Atlanta, GA

  Ziegler Headquarters!
  Instructed by Jim Ziegler

• December 16 & 17 Atlanta, GA

  Ziegler Headquarters!
  Instructed by Jim Ziegler

      Menu Selling

• November 9, 10, 11 Atlanta, GA

  Ziegler Headquarters!
  Instructed by Mike Lee

• December 7, 8, 9 Las Vegas, NV
  Stratosphere Casino Hotel & Tower
  Instructed by Mike Lee

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• The Terminator - Ozone Generator

• The Ultimate Professional
  Video Series DVD/VHS/CD/Audio Cassette

• $100 Business Cards

• Customer Proposals
  for New or Used Vehicles

• Trade In Eval Surveys

• Warning Stickers

• Daily Planners
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