SALES - Hunter Auto Group



SALESMANAGERS PLAYBOOK TOC \o "1-1" \h \z \u 1. Playbook Overview PAGEREF _Toc412130048 \h 42. Tactical Sales Book PAGEREF _Toc412130049 \h 53. Sales Plan PAGEREF _Toc412130050 \h 64. Sales Managers Plan PAGEREF _Toc412130051 \h 95. Save a Deal Meeting PAGEREF _Toc412130052 \h 116. One On One Meetings PAGEREF _Toc412130053 \h 167. Phone Call Strategy PAGEREF _Toc412130054 \h 178. De- Horsed Strategy PAGEREF _Toc412130055 \h 219. T.O. Strategy PAGEREF _Toc412130056 \h 2210. Gross Strategy: Pricing and Desking the Deal PAGEREF _Toc412130057 \h 2411. Desking Process: PAGEREF _Toc412130058 \h 2912. Hunter Sales Person Forecast and Commitment PAGEREF _Toc412130059 \h 3213. Sales Training PAGEREF _Toc412130060 \h 331. Playbook OverviewThe current desking system is a traditional one. Salespeople will approach the desk, find a manager and advise him of what they have. The manager will then decide how to handle the customer or objection, inform the salesperson who in turn will return to the customer.Each month each store will have a different Tactical Sales Book (the table of contents follow). At the beginning of every month, place the current monthly sales book on the shelf for reference (GSM or GM keeps) and start a new Tactical Sales Book. The benefit of this is that it makes the review of a previous month much easier. At a glance you will have sales, incentives, sales by dealer and sales by salesman. Scan this information at the end of the month.2. Tactical Sales Book Table of Contents:Schedules:1) Managers Working Schedule2) Salesperson’s Working Schedule3) Vacation Schedule4) Training Schedule - tbd by Save a Deal5) Advertising Schedulea. Budgetb. Advertising already in place, prior commitmentsc. Advertising campaignsInventories:1) New Car: by manufacturer, by age-oldest to newest2) New car inbound list3) Used Car: Aged oldest to newest—Analysis of used car core unitsby corporation4) Used Car: unavailable, auction, body shop, etcForecasts:1) Sales department: new, by manufacturer, used, F&l2) Sales person: by units, and incomeIncentives:1) By Manufacturer, all lines2) Stair step programs, including Bogey number3) Salesperson, Sales managers, cashPrevious Months Information:1) Previous month’s sales, by line preferred factory transmitted numbers2) Previous month sales by salesperson3) Previous month’s grosses, by department4) Previous month’s traffic counts by new, used, internet, walk-in5) Previous month’s incentives petition Scouting Report:1) Sales per factory2) Inventory per internet3) Advertising per observingPrior Month Housekeeping:Physical Inventory, New & Used vs. AccountingNew vs. Factory3. Sales PlanMinimum Sales Objective:Salesmen will be held to a minimum sales objective.Sales Training: Each store will have a training schedule put together one month in advance. The schedule will include the training topic and the manager assigned to do the training. We will use the training schedule to keep sales on track and focused. Training will be held at least two times per week. As we determine shortcuts that are being taken, we will adjust the training to compensate. The training will be done by all managers based on the training schedule.3) Back to the Basics: We all know that every time we decide to refocus or rededicate ourselves to selling more cars, we always start by saying "Let’s get back to the basics." Well that's exactly what we're going to do with a vengeance.4) Daily Sales Meeting (30 Minutes Tops): “Change is good. No Change, No Gain” Change is happening all around us. A lot of the change is external, which we have very little control over. The change we can control is internal. Remember we must control today - right now. If we can control our effort on a daily basis, instead of thinking on a monthly basis, we will be way ahead of the game. A great month is nothing more than a bunch of good selling days together. Therefore we will keep having a daily sales meeting every morning. The first purpose of the meeting is to determine the days plan relative to the entire sales staff. We want to use the daily meeting as a precursor to jump start the day. The salespeople should not view the meeting as a waste of time or a bitch session. The goal is to have a better trained and motivated sales staff than our competition.5) Used Cars:There are only a couple of reasons why a used car won’t sell. One is poor reconditioning and the other is it is priced too high (according to the sales person’s perception.) Each vehicle over 30 days old gets evaluated. The sales people will do this and each morning they will take a minute to share their car with other salespeople. This will be part of the salesperson’s daily duties. Salespeople should do an inventory walk everyday, but due to time, weather etc... they never seem to find the time. This will force them to evaluate the used car inventory, paying attention to the condition and salability of the unit. These sheets will be brought to the Trade Desk meeting.6) Touching Desk: Starting immediately all salespeople will be made to understand that touching desk before the customer leaves the dealership is mandatory; it’s absolutely a must When they touch desk they will know who the customer is and where he or she is from. The purpose of the turn is to insure a quality TO now, plus a quality follow-up strategy once the customer leaves the dealership. The salesperson must log the customer (no exceptions), paying close attention to the following info: who is the customer, what is he looking for, and how do we contact him? That is the bare minimum information needed insure a proper shot at saving a lost sale.7) Telephone strategy: Since this is one of the hottest prospects we can have, this will be a major focus. First we will have the salesperson take all phone calls at the tower. They will sit at the desk under the appointment board, where a script is posted and they will take the call, the salesperson will attempt to provide a manager with a TO before hanging up, just as with a walk in. 8) CRM:Each manager, when he sits down with his assigned salespeople for the daily One On One, will review the floor and phone log and CRM daily work plan. Our objective as managers is to guide the salesperson on the direction of the calls, letters and emails he is generating each day. Since they have to make calls anyway, we want to make sure they produce the best possible results.9) Follow Up by the Numbers: Our entire follow up strategy is based on several assumptions - that we are operating as they are. Fact one is the 78% to 90% within 7 days rule; the other is that 30% of everybody and anybody has a Family member that will buy a car within 90 days. So if that is true, considering everyone in our service drive or considering all of our prior customers, 30% of these people or someone in their family will buy a car within 90 days.10) Sale People Requirements: Let’s recap the changes we are requiring from our sales people:Revoke self exempt statusDaily sales meetingsNew car walk around, based on popular modelsUsed car evaluations using checklist.Mandatory Touching desk, with required information per laminated card in a reasonable time after ???Mandatory T.O. to mangers before customer leavesTelephone calls taken at desk, using scriptRequired to post appointment board and place appointment in VIN Solutions.Required to use play book for handling customers objection, free to improvise, chase the sale, whatever as tong as they used minimum objection handling from play bookRequired to log every customer, with minimum information, time at contact, customers name, where does he live, what does he want, method of contact, phone, emailRequired to place all prospects in VIN Solutions, info must match log.No time off in the last week if salesperson is not on track to hit forecast or cover his draw.On days off required to give sales manger plan for having sales manager earn them income while off.Required to perform minimum daily effort needed as outline in forecast to obtain the sales and income projections of the forecast.4. Sales Managers PlanMission Statement: Find out what works. Set up a process for everyone to follow, and make everyone follow it - every day, every time, without fail, no exceptions.Objective:1) To raise new and used car sales, and raise gross. Pay specialattention to new cars.2) To recapture market share for new cars3) To raise used car sales to more closely match the competition in thearea, paying special attention to the independent lots.1. Hold a save a deal every day, no exception.2. Hold a daily sales meeting.3. Hold a Sales Training Meeting at least twice per week.4. Complete the Tactical sales plan book by the 5th of the month.5. Think, manage effort.6. Manage by walking around; keep a manager on the showroom floor at all times. Be seen.7. Evaluate what the competition is doing; try to know what your customer knows about the competition.8. Develop an advertising plan based on our objective.9. Think differently; try anything; mix it.10. The key to our objective is follow up; recapture lost sales and work as a team.11. Be consistent when working deals; work all deals using the same strategy.12. Remember, ask yourself before doing any task, “Will this sell more cars today, now?”13. Customer follow-up: Before leaving, the sales manager will review the log and make sure all customers from the day are called; all appointments are called and confirmed and a plan is formulated for handling any customers who were unreachable.Manager on DutyThis entire plan is based on complete control of all customers who interact with the dealership on a daily basis.Often times when business gets tight managers start to wonder, “If business slows down anymore will they downsize?” The only way to avoid that scenario is to become indispensable.Because we now have a full manager’s staff we are in a perfect position to maximize every sales opportunity that presents itself.We want to have a manger on the floor at all times, everyday. That means if we are open and a manager is at the desk, we still want a manager on the floor, making sure that we are working and not waiting.It is imperative that we talk to every single customer, on the lot, on the phone, in the showroom. Again think managing by walking around. I know all mangers have other parts of their job description keeping them busy other than sales management; there is inventory management, lot management, advertising, etc... To keep it simple, the rule is that everything takes a back seat to customers. We have precious few to ignore or mismanage. Simply put the salesperson takes a customer. The salesperson involves a manager. The manager talks to the customer before leaving. The manager directs the salesperson to follow the customer, hourly or daily or whatever it takes for 7 days. The manager follows the customer for 7 days. If we log 20 people a day, and sell 5, that’s great. However, I want to know where the other 15 are at all times in the selling process.At the risk of repeating myself, we have plenty of managers to control, manage, and follow every single customer, every time, every day, without fail.Daily Schedule:9:00 AM — 9:30 AM Sales Meeting9:30 AM — 10:30AM Managers Save A Deal Meeting9:30 AM — 10:30AM Salesmen prepare the lot for sales (start vehicles, straighten lot, put out balloons, police lot, etc.)10:30 AM — 12:00PM Salesmen follow up with customers and Managers have One-On-One Meetings with Salesmen12:00PM — 6:00PM Managers and Salesmen work towards advancing and closing car deals6:00PM — 7:00PM Managers follow up with today’s traffic and confirm tomorrow’s appointments.5. Save a Deal MeetingEffective this month (January 2015) the following change will be made to the daily save a deal meeting process.All 4 square worksheets will be reviewed as part of the meeting. The desk manager is responsible for bringing the worksheets to the meeting, the GM or?GSM?of the dealership will review at the worksheet with the following goals in mind.If the customer didn't buy the car, why? how far apart are we? what can we do to sell the car? and what manager is responsible for follow up.The GM or?GSM?will review the worksheet for compliance with company policy on how to properly structure a deal, Was the deal worked using the AB pencil properly, were the reasons for cash properly explained.?If the worksheet wasn't properly executed, why? If for some reason the deal wasn't worked according to our procedure the GM or?GSM?will note on the worksheet the reason why.?The worksheet is reviewed to determine the TO time line, when did a manger get involved in the presenting of figures, how many managers were involved, how many?TO's were taken and by?whom.The worksheets will be returned to the master folder for periodic review by Rick or Randy. They will look at the exception notes in an effort to determine where we can improve our process and who needs additional training in the presenting of the worksheets.By reviewing the worksheets on a daily basis we’re hoping to find out how the deals were worked, if not sold what can we do to sell the car, how many?TO's?were taken, if multiple?TO's?are used does it make a difference.We will endeavor in this new year to put more emphasis on the customers while they are here in the store, not be so quick to let them leave to shop. The numbers show that the average customer will shop less than 2 dealerships in person before they buy, so it is imperative that we develop a technique to encourage the customer to buy NOW on their first visit.Multiple?TO's?are strongly suggested whenever possible when working the deal or presenting figures.When using the second TO that manager needs to have a reason for getting involvedwith the deal.The second manger will introduce himself as a manager with more authority than the previous manger. This is done either by having the actual supervisor of the first manager take the TO, for example if the new or used car manager does the first TO then the GM or?GSM?will take the second TO, if that is not possible then the next person introduces himself as the manager with the final authority to make a deal. Example, the?GSM?takes the first TO then the desk manager or used car manager takes the second TO and introduces himself as the person that has been empowered by the dealer, owner, to make a deal. SAMPLE SCRIPT TO FOLLOW.SAMPLE SCRIPT!Mr Customer I've been told that were not able to reach an?acceptable?deal?today. The owner, Mr?Hunter?has?asked me to personally talk to every single customer that leaves our?dealership?without buying. My job is to tell him on a daily basis which one of our customers did not buy and why.?So if you?don't?mind me asking what can i tell him is the reason you?didn't?buy today?***Get their?initial?reason for not buying today and build on it. Chase the sale at this point!Mr Hunter also realizes that often times the reason not to buy is not?solely?made?on?price?alone,?if?that's?the case what more information or help can i?give?you in order to make?an?intelligent buying decision?today?on the other hand if it is price then?I've?been?empowered?to do within reason anything we need to do to get you into the Hunter family.The car business has changed over the years, most of our customers by the time they?step?foot?into our dealership have already done?their?research and homework and know pretty much what they want or need in the way of price or payment.its been my?experience?that they leave the dealership and?immediately?go to?another?dealership in an attempt to reach that goal.Simply put Mr Hunter has asked me to stop that process by asking you?what?HE needs to do to earn your business today.******if still not able to develop an offer set the?customer?up for follow up process and use Mr Hunter as the ?reason?to keep in touch with the customer. put it on a basic level that the owner is?personally?interested?in?their?shopping process and wants to be kept aware of their?buying?journey.?*********emphasis?the fact?we've?been in business 75 years by treating?every?single customer as a special person and that is why the owner is so personally interested in them.THERE IS A THIN LINE BETWEEN?PRESSURE?AND PERSUASION AND IT IS CALLED TECHNIQUE!!The save a deal meeting is designed to restore that focus and concentrate on the most important management duties.A proper save a deal meeting is held everyday regardless of who’s off, who’s on vacation, etc.The meeting is non-negotiable. It must be held. The first day you miss the meeting you’ve lost focus and momentum.The meeting is to be held no later than 10:30 each morning using a structured format. We are tracking the things that are the most important to achieving our daily objective - which is to sell cars, make a profit, and ensure that there are no problems that will distract us from that mandate.By the end of the meeting a dealer can enter the dealership, pick up the save a deal book and immediately know the following: what was the sales meeting about ,what was the traffic count the previous day, sales the previous day, confirmed appointments for the day and tell him how many cars he can expect to sell today.Also are there any issues that affect the dealerships well being, any contract, title, hold note problems? Are there any personnel issues of the day? What are the inventory levels? Are there problem areas in inventory?Keep in mind the meeting is to facilitate selling cars. We review every deal in the F&l office, turndowns, switch opportunities in an effort to make sure every deal is worked to its fullest. We review each worksheet to determine if we are working deals for maximum gross and to make sure we are missing opportunities.Then we review the previous day’s sales log to determine our hottest prospects for the day. Follow up is assigned to each manager as needed.Summary of the Save a Deal meeting:1. Happens before 10:30AM2. Includes all on-duty Managers3. All pending deals reviewed4. Review sales log and Desking worksheets 5. Send completed Save A Deal work sheet to Tom and Randy.HUNTER AUTOMOTIVE GROUPSave A Deal MeetingDate:Day:Selling Days Left:Morning Sales MeetingTopic:___________________________________________________________Previous Days Traffic Count: (New)_________________________(Used)________________________(Phone New)___________________(Phone Used)__________________(Internet New)_________________(Internet Used)TOTAL:_______________________Previous Days Sales: (New)_________________________(Used)_________________________TOTAL:________________________Today’s Confirmed Appointments:____________________________Daily Deal Review: New, Used, BHPH:Status of Any Spot Deal:Turndown Review, Switch:Approved Review, Switch:Contract Problems:Title Problems:Hold Note Review:Missing Stips:Pending in DT:Department Gross Update…….. #_______ New $ ______# _______ Used $ ______ Totals $ ______Overage Inventory ReviewNew over 90 # of units _______Dollar Amount $ _______Used over 60 # of units _______Dollar Amount $Individual Salesperson Review: Problems:Day Off:Vacation:6. One On One MeetingsIn order to help grow the organization’s sales, we will need to grow the salesmen. The best way to do this is personal interaction with a manager.Each day each salesman should meet with a manager to review the following topics:1. How many sold for the month?2, How much money made for the month?3. Review the Stat Sheeta. How many Walk-ins? Phone ups?b. What are the ratio’s for Demo’s, Write Ups, Phone Appointments?4. Review the last 7 days of ups using the Contact Management report: VIN SOLUTIONS Prospect Management Analysis5. Make some sales calls with the Salesman6. Review the latest training class and encourage the Salesman to practice and use the trainingWe operate with a 3:1 salesman to sales manager ratio so there should be no shortage of management.7. Phone Call StrategyINCOMING PHONE CALL CLOSEThe purpose of this close is to handle what is arguably the 2nd hottest prospect in the dealership next to a be-back.The reason is that this customer has made 3 or 4 of the 5 buying decisions before calling.1. Want or a need……. In this case a new or used car2. Brand……… In this case a car we sell3. Source or availability..., in this case, this dealership, or is it available.4. Time………. in this case now5. Price…….. the only thing that they don’t know??Therefore a customer only needs to know two things when they call. Do you have a particular model or color, and how much?????Salespeople intuitively know this and that is why they will drop everything and run for the call hoping for the easy sell, which rarely happens, because most customers are just looking for answers to those two questions, selection and price%. While the goal of most salespersons is to set an appointment, it becomes a game of getting or giving information. If the customer wins, he finds out selection and price and has no need for an appointment. If the salesperson wins he establishes an appointment for the customer who must show up to get the information they require.Everybody uses a script in making this talk. Most customers use the same script. Why? Because it works for them. Most salespeople use a script, (regardless of what they tell you) which doesn’t work. What does work is our script which every salesperson must use.For the most part the salesperson may or may not log the customer; he may or may not tell the manager he had the phone call. The telephone operator does not tell the manager the phone call was received, or that there is any appointment made by management to follow up on the customer.I think we can agree that is no way to handle the 2nd hottest prospect to enter the dealership. Therefore the following policy will be adhered to regarding incoming phone calls.The easiest way to get a salesperson to use our script is to listen for the sales page. When you hear it, determine which salesperson has the calland then proceed to their desk and sit down and listen to the sales persons side of the call. All you have to do is just sit and listen. You can then control the call and the salesperson. This forces the salesperson to use our script or some facsimile of it in order to get an appointment. Furthermore you have the ability to motion the salesperson to hold the call and allow you to intervene to gain control, keeping in mind you goal is to set an appointment.All incoming calls should be logged and treated as a be-back calling for immediate follow-up. This customer will buy quickly.All salespeople should use the attached script. Failure to use the script should result in that salesperson not being able to take phone ups. After all you are dealing with the 2nd hottest prospect in the dealership.The sales strategy for taking an incoming phone callis monitor the salesperson conversation and set anappointment!!!!!!!!!!!!Hunter Automotive Group Salesperson’s Strategy for HandlingIncoming Sales Call1) Introduction: Good Morning, or Afternoon, This is ______________.2) Investigate: Are you calling about our Sale?Determine nature of call, Ask Questions, Chase the Call.Will this be your first purchase from us, or have you ever bought a car fromus?Chase the answer.3) Ask permission to slow down: You don’t have to buy a car today do you?4) QualifyWhat basic features do you want on your car?What color do you want would you considerWhat other models have you compared it to?Remember Ask before being asked5) Offer Switch: If new sales call askWould you consider a new car, low miles, remaining factory warranty for thousands less?If used sales call askWould you consider a new car, full warranty, if you could keep your payment the same?6) Information Overload Used to set appointmentWhat I would like to do is share with you estimates on discounts, down payments, monthly payments, interest rates, also share with you what your trades worth, showing you both ways, with or without a trade, would that be ok with you?7) Set Appointment: Use early-late shift scenario to verify Appointment.8) Get name, number:Please write my name and number down and call me if anything should change on your end, and P11 extend you the same courtesy. If anything should change on my end how should I reach you, would you prefer I telephone, email, or text you? What is the best time to reach you?Remember the customers objective is to check availability, or equipment, or color of a particular vehicle.Also they want to find out price, and get off the phone while giving the least possible information about themselves.The salespersons objective is to set an appointment for the customer to visit the dealership.This is best done by “scratching the record” building rapport, and by using information overload, convincing the customer that it is in his best interest to visit the dealership.8. De- Horsed StrategyThe purpose of this is to let a customer take a vehicle home in hope that they will close themselves on ownership. They will have time to fall in love, their friends and neighbors will see it and that will encourage them to keep it and they can evaluate the vehicle to determine if it will fit their needs, fit in their garage, etc.Before allowing a customer to take a car overnight, or even for the day, the salesperson will get a contact number where the customer can be reached early the next morning or later that day depending on when the customer is supposed to return the car. Our goal is to talk to the customer hours before they are supposed to return with the car to determine if there is going to be a sales objection, and then have time to properly form a strategy to sell the car.This will eliminate the 5 o’clock surprise, where the customer just drops the car off and says they will call you later, or even worse the “drop & flee”, where the customer drops the keys off to the first salesperson they see and says to have their salesperson call them later.Obtain the number using the following script:Mr. Customer I am delighted to let you drive and evaluate the car overnight I will need to talk to you in the morning to make sure everything is all right no problems with the car and answer any questions you might have. At what number can I reach you, say around 10:30? Great, you can expect my call at that time and I look forward to talking to you.Once the salesperson obtains the number he will provide a sales manager with the number, who will then consider the call back time and appointment and make a manager follow up call using the following script:Mr. Customer this is ___________________ I am the sales manager at Hunter Automotive and I am calling to ask if you have any questions about the car you drove overnight? (Answer any and all questions) and assume the close. Mr. Customer I see you’re scheduled to return around. This afternoon I will personally have the paperwork ready to expedite a speedv delivery when you arrive! Listen for the objection; try to deal with the objection if you tan. If not agree to talk to the customer later in order to give yourself sufficient time to formulate a strategy to sell the car.9. T.O. StrategyA proper TO has multiple purposes:1. To control the deal, there is no exact time to do a manager TO. Some managers do a TO at introduction; some do a TO at exit. The way we will do it at Hunter Corporation is whenever the salesperson needs help, or appears to have lost control.2. To slow the customer down in order to give the salesperson a chance to get or stay in control, (Crash TO)3. To introduce yourself to the customer to prepare the customer for a follow-up contact or telephone call.4. To evaluate the salesperson’s performance and determine where his sales process is the strongest or the weakest.5. To close a deal, or raise gross or to assure the customer he has gotten a great deal. Most customers won’t close or sign until the manager comes in, they have been conditioned that the deal is not done until the manager arrives.6. An exit TO at delivery, to determine if the customer is satisfied with his delivery experience and encourage a positive survey response.CRASH TO - WALK BYThis TO is designed for early in the sales process, to determine if the salesperson is on the right track and to make sure the salesperson and customer are compatible.Once the salesperson is on the lot talking to the customer, approach the salesperson under the pretext of asking the salesperson a question. Have the salesperson introduce you to the customer and then have the salesperson excuse himself for a brief moment (emphasize brief). During the salespersons absence ask the customer this, “Is the salesperson taking good care of him”, and answer all of his questions. (The purpose here is to determine if there are any personality problems between the salesperson and customer). If there Is, immediately dispatch the salesperson on an errand and get another salesperson for the customer. If all is ok and you are on the right vehicle, let the salesperson proceed and assure the customer that once they have picked out a vehicle and price becomes an issue, you will again intervene and help the customer.Finally plant the thought in the customers mind that before he leaves to see you about his trade - “Mr. customer I noticed your trade & I have a customer requesting a trade like yours and if you are not able to work anything out with the salesperson see me before you leave, and at the very least maybe I can buy your trade” This is designed to have the customer seek you out and request a TO before he leaves.Also this is the TO you will use to determine if the salesperson is on the road to a sale or has taken a shortcut. “Mr. customer, has BOB done a product presentation; have you both had a chance to drive the vehicle, has BOB explained our way of doing business here at Hunter?” Again you are just looking for any response from the customer indicating that the salesperson has not done his job so you can put both the salesperson and customer back on the road to a sale.10. Gross Strategy: Pricing and Desking the DealThe following strategy for maximizing new and used car gross is in effect starting Jan 15, 2009 and will be strictly adhered to.The purpose of the playbook is to ensure all deals are worked consistently the same way regardless of the manager working the deal.Gross is controlled by the sales managers, every time, and every sale.Several times a month we will review the gross strategy as a group to determine whether or not we are maximizing the strategy or does it need changing or tweaking.An in depth review of the monthly sales wash out sheets show that the grosses vary greatly from manager to manager, store to store. In an attempt to achieve parity it is necessary and imperative that we follow the strategy to the letter.There are several reasons why the gross fluctuates greatly. 1) Vehicles are not priced right to ensure adequate markup, 2) Deals are not started at MSRP or Suggested Retail, 3) Deals are not penciled correctly with the goal of preserving and retaining the most gross allowable, 4) Proper value is not built in the pricing or presentation of the vehicle (failure to follow road to the sale)In order to inspect what we expect and keeping in mind the age old adage that what you measure improves, the following inspection policy is In effectto ensure implantation and compliance of the gross strategy.Pricing Vehicles:The following process is in effect when starting the deal at the desk.All deals are started at the desk using the Desking Procedure— Primary or Desking Procedure — Second dayClarity is defined as having a clear commitment to buy, failing that commitment the manager will refer to the playbook for the strategy best suited to deal with the situation.One of the reasons that the required gross is unobtainable Is the salesperson develops a flight instead of fight attitude and no amount of coaching, loading his lips, or cajoling can overcome that reflex. Instead a manager T.O. is needed ASAP to preserve the gross. (Refer to the playbook T.O. Strategy)Training the salespeople to overcome objections that effect gross is imperative, the training needs to be repetitive and often and should include role playing.As mentioned before you can’t manage what you can’t measure so the following process is in effect to ensure compliance with the strategy.PRE-OWN VEHICLEPRICING STRATEGYEFFECTIVE FEBRUARY 2015.Our current pricing strategy for used cars utilizes the traditional way of first assessing a customer’s needs, building rapport, and highlighting the features and benefits of a particular car before we discuss price. The theory is we build value before discussing price, therefore the less time you spend on price the less time a customer can negotiate and thereby lower the gross margin.But times have changed. Today’s buyers are better-informed about vehicle prices and they are less willing to dance as dealers follow the Road to the Sale and avoid talking price. To them, a salesperson’s efforts to play coy about price, especially when it’s posted and promoted online, undermine the rapport and trust necessary to close the deal. Most customers are demanding a transparent pricing model and there are many dealerships out there giving them exactly that. Car max, Asbury’s Q Cars, Auto Nation to name a few have already embraced this model whereby the address the pricing up front with the customer. This new reality is driving us to reinvent the Road to the Sale pricing strategy at our stores. Instead of saving price discussions to the final stages of a car deal, we will address a vehicle’s pricing up front. The dialogue goes something like this:Salesperson:“Thank you for coming in today, Mr. Smith. We’ve got the 2010 Nissan Altima you wanted to see outside and ready for a test drive. Before we head out, I’d like to share a little information about the way we price our cars here at HUNTER. We don’t mark up our cars like other dealers, and offer big discounts. We price our cars to be competitive, which I’m sure you noticed in your research online.“After we test drive the car, I’ll share a market survey report that shows how we priced the car. We’ll also review the CARFAX report and the work we did in our service department to get the Altima in tip-top shape for you. I’m confident you’ll agree this car is a great value and a great ride. Here are the keys; let’s go take it for spin.”This revised Road to the Sale will help us hold gross by proactively acknowledging the time and effort a customer undertook to find the car and putting them at ease about the unit’s asking price. In this way, there’s no disconnect between the pricing transparency many dealers offer online but do not provide in their showrooms as they follow the traditional Road to the Sale.Will customers push back on price? Some will and some won’t. Some customers will ask for a better price, but “roll over and that’s the end of it” when shown comparisons with competing vehicles available in the market.This dynamic echoes recent industry surveys that suggest 20 percent of used vehicle buyers care most about getting the lowest price on their car, while the remaining roughly 80 percent of buyers want to know they have the right car, the right price and the right dealer.The following are three steps to help us reinvent the Road to the Sale and hold gross at our dealerships:1. Price our cars to the market.This step ensures our used vehicles are in the market and on the money in the eyes of today’s online vehicle shoppers. This can be a challenging step because traditionally many managers and salespeople still want to mark up cars up $3,000 to $4,000 irrespective of prevailing retail prices for the same and similar vehicles. Our used car director is responsible for determining the price of each used car using a formula that allows us to be competitive in the market place and allows us to price our cars at or below the prevailing market rate. The used car director will constantly review the cars as they age thru the buckets and adjust the prices according to market prices as needed.2. Validate our asking prices.The key here is offering legitimate comparisons between the price on our vehicles and others like it in the market. The comparisons should highlight differences in equipment, color, options, mileage and other characteristics that affirm and justify why our asking price represents a better deal than the available car down the street.?Note: In some cases, the key differentiators might relate more to our dealership and the positive customer experience we offer the customer, the fact that we’ve been in business 75 years, the fact the owners are available every day to talk to customers, our 3 day love it or leave it policy all are reasons to buy other than price, when added to the fact we are price competitive in the market place price no longer becomes the number one issue.3. Embrace the transparency’s as mentioned in the beginning by adopting this method of up front pricing this will interrupt the traditional salespersons flow, normally every step builds to the grand reveal of the price, here it’s done up front, but the bigger fanfare that’s made over presenting the upfront pricing will go a long way towards solidifying the dealerships credibility. Just remember the’ new negotiation is documentation’. Showing the customer the car fax, service RO’s, and market comparisons will ensure the customer buys into the transparency pricing model at HUNTER. The salesperson needs to be trained to keep selling after presenting the upfront price, they still need to build value, build rapport, sell the dealership, etc in an effort to give the customers more reasons to buy other than price.Process Compliance:1) A daily review of the worksheets will be conducted to determine the structure of the deal and the way the deal is penciled on a deal by deal basis.2) Please save a copy of every worksheet whether or not you sold the vehicle. Those sheets should be reviewed in the save a deal meeting to determine what can be done to turn previous prospects into customers.3) Please review the Sales Morning Report to determine where we are making mistakes in our process for determining the proper cost.4) Please review the gross graphs from Sales Morning Report to ensure you are getting a fair spread and haven’t slipped into a sweet spot the reflects a gross pattern void of any very high gross.Remember our Gross Philosophy: Don’t Pass Any Deal Provided the Deal is Worked Properly Volume is Great Gross is Greater!!!!11. Desking Process:Cash Down Payment request:Customer cash investment is initially discussed as a good way to save money when purchasing a vehicle. It is mentioned after the customer agrees that the vehicle is the one they would like to own during the demo ride as they are returning to the dealership (while the customer is driving).The salesperson will follow the script “At Hunter, we have found that the best way to save money when buying a vehicle is with an initial investment of 20-25%. On this vehicle that is about $_____ . Maybe you would prefer to invest a larger amount of $_____ to $_______”.The salesperson is responsible for memorizing the customer benefits of cash down as well as the transition statements to cover customer objections to cash down payment.Trade Valuation:Initial valuation is determined by using a soft figure. The trade-in initial value is determined by holding back 20% of the ACV.Payment Quotes:Initial price is MSRP plus the addendum or NADA Retail. If the vehicle is priced on the internet, show that price and the amount of discount. Do not show any manufacturer rebate at this time.Initial term is 48 months.Initial quote will be without pulling a bureau if it is a primary deal without any red flags. The bureau will be pulled before the second pencil if the customer is negotiating payment/rate.The F&I manager will determine the average interest rate from actual financed customers from the dealership every month from the last 90 days sales. This changes each month. It is to be disclosed to the customer.First Pencil:20% down payment20% holdback on the ACV of the tradeFull retail Payment range of $10Average interest rate 48 Month TermSalesperson gets a written offer and a credit application, then desk manager writes offer back to the customer.Second Pencil:60 monthsRate based on customer’s credit or average rate if credit not known$10 rangeA/BCustomer’s down payment and whatever the payment works out toWhatever down payment is required to get to customer’s paymentExample:The customer commits to $2,000 down and $500 - $510 a month.A: $2,000$580 - $590 x 60mB: $4,300$500 - $510 x 60mThird Pencil:If a third pencil is needed, the manager handles the customer directly.DESKING LAMINATED CARDHave You Sold A Car Y or NCan You Develop an Offer Y or NAre You in Control Y or NSales Managers Check sheet? Who are they?? Where do they live?? How long have you been with them?? Have they ever bought a car from us?? What are they looking at, what other models are they looking at?? What basic features do they want?? Do they have time to buy?? Did they Demo?? Did you offer switch?? What are their current payments, when is the next one due?? Their trade, did they buy new, where?? Any missing parts to their trade (third row seat, extra set keys, etc.)?? Do you know why they are still in the market?Now I know all the reasons they won’t buy. Tell me the best way to sell them.12. Hunter Sales Person Forecast and Commitment ____________ MONTH SALESPERSON______________________________________UNITS DELIVERED __________SELLING DAYSPLANS FOR ACHIEVING MY GOAL:1._____________________________________________2._____________________________________________3._____________________________________________4._____________________________________________5._____________________________________________IMPROVEMENTS I CAN MAKE IN MY SELLING SKILLS:1._____________________________________________2._____________________________________________3._____________________________________________4._____________________________________________ GOAL PREV PRIOR MONTH MONTHOPPORTUNITIES _____ ___________DEMO’S _____ ___________WRITE UP’S _____ ___________SALES _____ ___________$ EARNED _____ ___________APPTS SET _____ ___________APPTS SHOW _____ _____ ______GOOD SELLING13. Sales TrainingTraining will be held in each store twice per week. The first training session is to introduce a topic. The second training session is to review the first session in more detail using role play.Meet & Greet: 1st chance to scratch the recordWelcome to Hunter.Are you here for an appointment?Is this your first visit or have you been here before?Are you here about our sale?Have you ever bought a car from us before?You don’t have to buy a car today do you?Collapse the Confrontation:Mr. customer, sounds like you’ve been getting the run around, are you having a hard time getting price-info-whatever?First of all, let me apologize for the way you’ve been treated, it’s not my policy to do business that way.Not only would I like to give you figures on our car, I would like to share with you estimates on down payment, monthly payments, interest rates, and show you what your trade is worth, both ways, would that be ok with you?That would be my fault, not yours.You can always change your mind!Qualify:Have you ever bought a car from us before?What basic features do you want on your next car?What do you like best about the car your driving now? What do you like least about the car your driving now?Work: Does your company participate in any of our many rebate programs?Select a Vehicle:Price Request: (USED) that car has just been reduced to $________New Car: Over inflate, customer response, hey this is lower than you said?Offer Switch:Would you consider a new vehicle, full warranty, if I could keep your payments the same?Would you consider a like new vehicle, factory warranty, low miles, if I could save you thousands.Trade Evaluation: Build Rapport, QualifyDid you buy this vehicle new?Where did you buy it?How long have you owned it?What do you like best?Do you have an extended warranty?Have you spent any money on it?Touch, Rub, complimentPresentation: Feature, Advantage BenefitSafety, Performance, Advantage, Comfort, Economy, DependabilityFeature: What is IT? Advantage: How does it work? Benefit: Why is that important to you?What basic features do you want?You would probably buy this car for that reason alone, wouldn’t you?Have we selected the right vehicle for you?Is there anything you want that’s not on this vehicleThat wouldn’t stop you from owning it, would it?Demo:Is there anything other that price keeping you from owning it?Park here on the sold lineTrial Close:I understand, however if they say no, what then?If they object, what will they object to - the price, payment, car, dealership?Are you currently making payments?When is the next one due?How much are they?How did you get the price so low?How do you want to handle your tax and tags?Here’s what I would like to do - take you out of your car, put you in our car and show you how to keep your payments the same.Would you consider a like new, low miles, factory warranty, and possible save you thousands?On a scale from 1 to 10?No problem, not only would I like to give you a price on our car, I would also like to share with you estimates on down payment, monthly payments, interest rates and show you what your trade is worth, both waysThat wouldn’t stop you from owning it would you?USED CAR EVALUATION FORM2952750117475Why a Used Car won't sell1. Poor reconditioning2. Over priced for Customers perceived Value3. Salesperson's Attitude4. improper marketing/priced wrong vs the market/weak comments00Why a Used Car won't sell1. Poor reconditioning2. Over priced for Customers perceived Value3. Salesperson's Attitude4. improper marketing/priced wrong vs the market/weak commentsDate: ________________Stock: ________________Year: ________________Model: ________________Days inInventory: _____________Sales Person: ___________________________A. Mileage: ______________________________B. Miles Driven: __________________________C. Condition of Vehicle (Inside, Outside, Tires, ETC.)________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________D. List several features or benefits of this vehicle________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________E. What can be done to improve the marketability of this vehicle?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________F. SRP/VDP: ___________________ / ________________________G. DEMO DRIVES: _______________________________________H. CRM LEADS: _________________________________________I. PRICE RANK: _________________ OUT OF ________________________ J. MILEAGE RANK: _______________ OUT OF ________________________ ................
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