Green Pea Diary: "The Rules of 90-10"
By Jack Bennett
In the last few issues we've been reviewing a lot of the basics that are the backbone of successful sales. One of the most important things salespeople need to understand is what motivates people to buy. Why do they buy one model over another, choose one dealership over another or even one salesperson over another? And just as importantly, how do they choose whether to buy or not to buy?
One thing my very first sales manager told me was, "Jack, people buy cars 90% on emotion and 10% on logic; because there is no logical reason why a person would trade in a two year old car with 20,000 miles on it."
It really made sense to me and after having worked with that belief for many years, I know it is still true. I have also started to look at other areas that motivate people to make a buying decision. To simplify the whole process, I have formulated "Jack's Rules of 90-10." (Hopefully my eventual claim to fame!)
Attitude and Ability Selling cars is 90% attitude and 10% ability. Anyone can sell a car. With some very rudimentary skills, they can get the job done. So virtually everyone has the ability. Naturally, the better a person hones those skills and adds in his/her own personality, the easier it is to sell a car, close a sale and generate a profit. But people can have all the ability in the world and if they don't feel like getting up in the morning, they will not be successful. Very few people in our business can just "mail it in." If salespeople are having a bad day and even wish they were still home in bed, it will show up in their attitude and customers will sense it.
As a sales manager, give me a salesperson with a great attitude. One that is excited to get up in the morning and I'll develop his/her abilities. But give me a natural who stays in bed and I'm in trouble.
Wants/Needs and Emotion/Logic I group these two together because they are so very closely aligned. There are very few real "need" buyers out there. If a person was a "need" buyer, his trade-in vehicle would have 150,000 miles on it, be at the end of its useful life and it wouldn't have any options other than a heater. As soon as customers start purchasing pin stripes, radios and two tone paint, they become "want" buyers. The factories know this. That is why they advertise on emotional levels rather than logical ones. Obviously, when they're talking about a truck and they advertise payloads or towing capabilities they are focusing on needs; but ultimately that cloth interior, sunroof and XLT trim package are to get the customer excited. And that's all right. As a matter of fact, it's the way it should be. People should get excited and should have the opportunity to upgrade because they want to. Keep your salespeople focused. Keep them excited. Get them emotionally charged and they will sell more cars.
Selling and Closing Give me a good salesperson over a good closer any day of the week. Because when a customer is sold on a car, I could get a 16-year-old office clerk to complete a contract. Look at any hot seller and you'll understand what I mean. Right now the PT Cruiser for example, is a hot seller. Customers are often sold before they get there.
But there is a fine line between closing and selling. "Sir, would you like a light or dark color?" He says, "A light." Have I closed him on the color or have I sold him on the color? I like to think I sold him.
The thing to remember is that when your salespeople are on the lot, they are selling, not closing. The more time they spend showing cars, explaining features and benefits, and earning the customer's trust, the less time they'll have to spend arm wrestling in the office over fifty bucks. The road to a sale is 90% selling and 10% closing.
Value vs. Price and Price vs. Value A survey of customers who recently bought cars showed that when asked the question, "What was the most important thing on your mind when you went to a dealership?", nearly 90% of customers responded something other than price. They answered service, reliability, reputation etc. I categorize all of these things as value. Customers are really looking for value. In that survey, a low percentage of customers put price as their main concern. However, when they surveyed salespeople, they all said the customers had only one thing on their mind – price. So what your salespeople believe the customer is thinking is not necessarily accurate. The main reason a customer walks toward the window sticker or the price issue is because the salesperson has stopped doing his/her job. They've stopped selling, stopped serving and stopped leading the sale. The only place a customer can go when the salesperson stops talking is price. When a salesperson stops moving the sale forward, the customer's standard response is, "How much?" Always move the sale forward and when customers ask, "How much?", they are in a closing office.
Good Luck and Good Selling.
A 25-year veteran of the automotive industry, Jack Bennett is the author of "You Can and Should Sell Cars," a book which has sold thousands of copies and is being used in sales training by dealers from the Bahamas to Canada. jbennett@dealeronline.com
