Belly to Belly

This article, written in 2016, addresses the ongoing discussion about online vehicle purchases and the potential elimination of salespeople during this transition. At the time, and still today, I strongly believe that people prefer doing business with individuals they know, like, and trust. However, I did not anticipate the global shutdown and the subsequent need for society to adapt to online communication and relationship-building.

Surprisingly, like many others, I discovered the ability to establish robust retail business relationships with customers without ever meeting them face-to-face, let alone in person. This experience has prompted me to include this old article in my blogs, showcasing how far we have come. It serves as a reminder that we must all embrace change and remain open-minded.

In this ever-evolving digital era, we have learned that building and maintaining relationships can be effectively accomplished online. It is a testament to the adaptability and resilience of both businesses and individuals. Let us continue to embrace new opportunities and adapt to the changing landscape of the modern world.

Enjoy this article "Belly to Belly" by Kim MacPherson March 23, 2016

Why you should still try get Belly to Belly with your customers? Technology is changing the how we SELL vehicles not the way. In sales your job is to build a relationship and trust with your customers by uncovering their challenges and offering solutions. The fact is you will have a much easier time of doing that if you are in person. Become an advisor to a friend looking for help in an area where you are the expert. I think we have gotten away from how valuable that relationship is, thinking it can be replaced by technology.

I can say confidently is that most customers today still complete their vehicle purchase transactions at the dealership. YES, you will sell more and make more if you can get your customer "belly to belly" with you in your dealership! You want your customer in the best position to purchase a vehicle from your current inventory today.

I remember in the “old” days when I started selling vehicles in 1996, we had so much phone training because customers started calling dealerships ahead of visiting asking about what we had in inventory and the "best price". Now everything is online, customers have more information than ever, and they still email, or call to ask questions about the product and ask about the best price. Why? When all the information is there, why do they still come into the dealership, why do they call to ask a product advisor questions?

The truth is, that making a vehicle purchase decision for most people is very complicated there is so much to consider and many moving parts many people want to be able to discuss this with a person. Most customers need financing, in fact, 40% of people across Canada have less than perfect credit and need financing prior to selecting a vehicle.

The difference for sales professionals today is people call, email, apply for credit online and communicate using social media. This is AWESOME for a great sales professional that knows how to answer a question either written or over the phone and follow up with the question, how soon are you able to come down to the dealership?

Nothing really has changed, the goal of every conversation that does not face to face is to book an in-dealership appointment. When possible, customers inquire about vehicles from away all the time. There are more vehicle deliveries that ever taking place customers kitchen tables today. This is great as it is another opportunity for you to sell vehicles, however, it's not the norm. For example; it is possible for one partner in a relationship to buy without the other partner being a part of the process, it's just not the norm, so including all decision makers before attempting to close the deal is just smart. Asking your customer on the phone or over email when a good time is for them to come to the dealership is just smart.

Look back on your career and ask the question, how many times when someone has committed to purchase on the phone or online do you discover there are other factors you still need to overcome when they finally arrive at the dealership? Example, the other partner needs to see drive and ok the price/payment, the vehicle the customer selected for themselves isn't the best deal for them (negative equity, customer credit, not the best vehicle for customers needs/budget, trade value) How many times after the customer committed did they show up for their "delivery" only to negotiate with you, on trade, price, payment, rates, terms or more common than not, the customer couldn’t get approved on the vehicle they selected?

Yes, I know what you are thinking, Kim our nonprime department delivers vehicles to people all the time! Yes, that's great I deliver all the time myself, out of the area. Remember step one is still always to ask your customer when they can come to the dealership. If they are in your area secure their pre-approval before they show for their appointment.

The point to remember is that in every vehicle sale there is a point when your customer is belly to belly with someone holding a set of keys and contracts. If I am the sales professional I know that the more that person is me, the better chance I have of keeping the sale together, maintaining retail price and securing repeat and referral business.

In the end, given the choice to sell a vehicle online or over the phone versus having your customer in the dealership, you want to choose the dealership.

To be clear if someone calls, email, text, FB, tweets, etc with the stock number of the vehicle they want and they have the money ready for transfer, well SELL IT! Take every opportunity you can, and keep in mind most people still do not purchase vehicles that way.

I hope this is helpful, keep on rolling units, tell the truth and have fun!

Kim MacPherson, Sell It Smart & Buy it Smart Automotive Inc.

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Increase Gross Profits and Maintain CSI Scores

By Kim MacPherson • 12 Jan, 2008

Kim Macpherson January 2008 The finance and insurance manager is a sales professional. Following simple steps to the sale, uncovering and understanding the customers needs and presenting solutions insures success. Step 1: Meet and greet Introduce yourself to your customer in the sales associate’s office, letting your customer reach a comfort level with you immediately. Customers rarely feel comfortable moving from the sales associate’s office to the business office to meet you for the first time. It has taken the customer hours, sometimes days or even months, to become comfortable with their sales associate and you look like a loan officer at the bank. Hint: When you introduce yourself to the customer sit on the same side of the desk, no computer, and build a relationship. Step 2: Interview In the sales associate’s office, ask the customer a few questions to uncover clues that will tell you about his needs giving you the ability to offer solutions. Customers have one set of needs when buying a car and a different set of needs when protecting themselves and their investment. The best way to uncover needs and solve problems is to maintain control by asking questions. Success will be achieved by asking the following: 1. How long to you typically keep your vehicles? (Clue #1, warranty) 2. Do you have a trade-in? 3. Do you have full coverage insurance? 4. In the event of your death who would you want to receive the title to your vehicle? (Clue #2, life insurance) 5. Do you have with you (stips you need): driver’s license, voided cheque, insurance papers, and ownership for your trade? 6. Where do you currently do your service work? 7. How often? 8. If we could make it cost effective would you prefer to do your service with us? (Clue #3, service package) 9. Review credit application. Introduce the “what happened, what changed?” form. (Clue #4, warranty and life insur- ance) 10. Is there any additional income? 11. If you were unable to work due to illness or injury how would you make your payments? (Clue #5, disability insurance) Commit these to memory and be able to ask them in whatever order is comfortable; but ask them. If you can, make this a dealership policy. It will protect you legally if a dispute were to arise between you and your customer regarding what the customer was told or how they were handled in the finance office. The finance department can support their argument if everyone has the same steps and script to follow. Once all the questions have been asked the finance manager lets the customer know he is going to need 10 minutes to look over the deal and gather required documents. After that he/she will return to review and complete the paperwork with the customer, handle funding and get them on their way as soon as possible. Step 3: Produce presentation/menu sell Based on the interview, the finance manager will line up four different packages for the customer’s approval. Each package has the monthly payment associated and are pre-sented highest to lowest cost of coverage. When a package is refused, it is important to let the customer know what they are forfeiting. For example if they say no to life insurance, make it clear that if something were to happen to them their loved ones are responsible to make the car payments. Here are a few items to consider in finance beyond the road to the sale that will increase gross and improve CSI. The “cash customers” are most of the time not actually buying with cash. They are using an alternative finance source, usually a line of credit. This is not so good for the customers and makes selling product in the business office difficult. The solution? Every customer that purchases a vehicle must see a business manager. Giving you one more chance to convert them to one of your finance sources, and in most cases stop them from making a bad financial choice. Dealing with the high interest rate objection can be very easy if you establish control with your customers from the beginning of the transaction. A printout from their credit bureau is available for when they ask why their interest rate so high. The response is, “Based on the information you have given me this is the best interest rate the banks have offered you. If you like we can have a look together to make sure I have not missed anything?” Present their credit check to them for review; highlight three of their credit blemishes. Let them know you have reviewed their credit again and the rate they have is in fact the best rate available to them at this time. To end this uncomfortable moment ask this question, “Do you have any other questions before we continue?” If you ask this question, most times the customer will agree and move forward with you. A smart finance and insurance manager will thank the sales associate for the deal, commit to have the vehicle delivered as soon as possible and come to the sales associate’s office to introduce themselves to the customer and begin the interview. The associate will feel appreciated and want to help make the finance manager’s job easer. You will be surprised how many customers come to your office already prepared to purchase product. Apply these steps and watch your finance department become your largest profit centre in your dealership.

DOES SIZE MATTER?

By Kim MacPherson • 14 Jan, 2007

Kim Macpherson January 2007 "Selling cars and making money, that’s what we do.” That is exactly what a small used car dealership in Halifax, Nova Scotia is doing. This small city with little more than 350,000 people feels a lot bigger when you are standing in this dealership’s showroom, packed with customers and sales people and managers writing deals one week before Christmas.