NADA MEETING: Car Salesmen Can Ask Stupid Questions

BY JOHN PORRETTO ASSOCIATED PRESS

SAN FRANCISCO

February 5, 2003: John Porretto writing for the AP reported the questions that can kill a car salesman's chances of selling; Rule No. 1 for car salesmen: Don't ask customers, "May I help you?"

It seems harmless enough, but those four words allow the customer to take control of negotiations -- not a good thing, David Martin tells auto sales trainees.

Martin's seminar, "10 Questions that Can Kill a Sale," is meant to provide guidance and advice to salespeople, but it also offers insight into a process that for some is as pleasant as a root canal.

"If the customer says, 'No,' or 'I'm just looking,' it creates one more objection for the salesman to overcome," Martin said during a training session at this week's National Automobile Dealers Association convention.

In years past, such objections might have prompted the "hard sell" from a savvy salesman and his equally attuned sales manager.

That doesn't work these days. Backed by the Internet and numerous consumer publications, potential buyers have as much information as many dealers on retail pricing, trade-in values and features.

Better-informed buyers have added a new dimension to selling cars and, Martin says, made it that much more important for salespeople to know how to build integrity and maintain a potential deal's momentum.

Courtesy and respect are vital, Martin says, but it's equally important to avoid questions that bring customers' ego into play or give them an opportunity to bolt.

So, instead of, "May I help you," Martin advocates something more conversational, such as "What brings you into our dealership today?"

"It doesn't mean they still won't say they're just looking, but you'll find they won't say it as often," said Martin, a principal in Mar-Kee Consulting Group Inc. in Daphne, Ala.

Other inappropriate queries, which can make a customer uncomfortable: How much do you want to spend? What do you want your payments to be? How much do you want to put down?

(Note: Martin refers to a car note not as a "monthly payment" but as a "monthly investment.")

"One of the most dangerous things you can do is involve a customer's ego," said Martin, a trainer for more than a dozen years. "That's when they start to dig their heels in."

Martin suggests asking the customer to define a range, which adds flexibility to negotiations. He also likes it when salesmen hold their arms in front of them, providing a visual range for the customer.

A tip in some consumer car-buying guides is to avoid a test drive until a price is negotiated. The goal is to minimizes the emotional aspect of the deal.

Martin tells salespeople to operate as if taking a test drive is a natural part of the deal.

"We want this thing to be about emotion," he said. "We want them to fall in love with the car."

James Botsacos, a Toyota and Hummer dealer in Flemington, N.J., said he decided to employ a different integrity-building sales approach when he opened 10 years ago -- tell the customer everything.

Botsacos said he provides his customers the cost of the car, including dealer rebates and other incentives, and simply negotiates profit.

Victoria Smith, a retired sales manager who lives in Flemington, said she bought a used Infiniti from a Botsacos dealership last March. Though she feels as if she may have moved too quickly to purchase the vehicle, she said she's pleased with it.

"They did present how much they bought it for and how much they're going to make on it and all this," Smith said. "Well, you take their word that's the way it is."

Botsacos said more than half of his customers have Internet access and therefore are typically well-versed on pricing.

"If someone says they're shopping for a car and they want a price, we simply tell them how we sell cars: 1If you'll allow us to make a small profit, we'll sell you a car,"' he said.

"Believe it or not, that's OK with most people. The customer is used to paying a profit. It's just a question of how much and what they deem to be fair or unfair."