Maximize Your Retail Customer Profits By Laurie Brown  |
Let's be honest. It is getting harder and harder to make a decent profit from our retail customers.
The internet abounds with articles such as; "Car dealers hate us...you'll love us!," "How to save
$3000-$6000 when you buy a new car," etc. Our customers are coming in and telling us how
much over invoice they are willing to pay. So how can we maximize their profit potential?
The internet abounds with articles such as; "Car dealers hate us...you'll love us!," "How to save
$3000-$6000 when you buy a new car," etc. Our customers are coming in and telling us how
much over invoice they are willing to pay. So how can we maximize their profit potential?
1. Build Value
A Purdue University study showed that when the customers perceived value exceeds the
price (meaning that customers feel that they are getting more than they are paying for),
eight out of ten will buy. So where and how do we build value? Look to build value in
each of the three Ps...Product, Place and Person.
price (meaning that customers feel that they are getting more than they are paying for),
eight out of ten will buy. So where and how do we build value? Look to build value in
each of the three Ps...Product, Place and Person.
PRODUCT
Know your product inside and out. Find the interesting details that customers might not
be aware of. When doing your walk around, don't just spout off features. Make sure you
tie features to your customers' hot buttons. Use the phrase (or something like),"And what
that means to you is..." It is best to talk about an average of three features per walkaround
position. It may seem like more is better, but studies show that customers tend to
get overloaded and can have a negative reaction if too many features are presented.
Spend at least 15 minutes a day on boosting your expertise, learning something new
about your product, reading owners manuals and articles about your product, walking the
used car lot, or talking to a mentor in your dealership. Do what it takes to be an "expert."
be aware of. When doing your walk around, don't just spout off features. Make sure you
tie features to your customers' hot buttons. Use the phrase (or something like),"And what
that means to you is..." It is best to talk about an average of three features per walkaround
position. It may seem like more is better, but studies show that customers tend to
get overloaded and can have a negative reaction if too many features are presented.
Spend at least 15 minutes a day on boosting your expertise, learning something new
about your product, reading owners manuals and articles about your product, walking the
used car lot, or talking to a mentor in your dealership. Do what it takes to be an "expert."
PLACE
Ask yourself what sets your dealership apart. "Have we been in business for 40 years?"
"Are we a family business?" "Are we a "no hassle" dealership?" "Do we have more
inventory than our competitors?" In other words, how are we distinct? Once you have
answered that question, make sure your customers know how your dealership is different.
Does your dealership have a mission statement? Do you know what it is? Learn it and
talk about the goals of your dealership with pride.
"Are we a family business?" "Are we a "no hassle" dealership?" "Do we have more
inventory than our competitors?" In other words, how are we distinct? Once you have
answered that question, make sure your customers know how your dealership is different.
Does your dealership have a mission statement? Do you know what it is? Learn it and
talk about the goals of your dealership with pride.
PERSON
The most important element of the three Ps is to build value in doing business with you.
First of all, you are the only thing that you have to offer that they can't get anywhere else.
Your willingness to go the extra mile, be patient, and be well informed, will help the
customer buy a vehicle, rather than having you "sell them" one. These practices will go a
long way towards setting you apart from your competitors.
The world is changing fast. Make sure you are aware of new technology that will help
you stay connected to your customers.
Check your negative attitude at the door. Your customer is making a decision about you
in the first 90 seconds that they spend with you. Your smile, eye contact, warm
handshake and enthusiastic greeting will prove to them that you are someone that they
want to do business with over and over again.
First of all, you are the only thing that you have to offer that they can't get anywhere else.
Your willingness to go the extra mile, be patient, and be well informed, will help the
customer buy a vehicle, rather than having you "sell them" one. These practices will go a
long way towards setting you apart from your competitors.
The world is changing fast. Make sure you are aware of new technology that will help
you stay connected to your customers.
Check your negative attitude at the door. Your customer is making a decision about you
in the first 90 seconds that they spend with you. Your smile, eye contact, warm
handshake and enthusiastic greeting will prove to them that you are someone that they
want to do business with over and over again.
2. Stay in touch
This is where most sales consultants drop the ball. We are so busy dealing with ups that we
forget that our most valuable and easiest customers are the ones who have already bought
from us. Get a customer management program such as ACT and use it. Call your customers
within 24 hours after the purchase to make sure everything is ok. If there is a problem, move
heaven and earth to fix it immediately.
Write a handwritten thank you note, then check in (with their permission) via a phone call,
email or newsletter at regular intervals. Make that contact personal. Use the information you
learned previously to continue building rapport. Ask how Johnny did in little league.
Congratulate them on Becky's graduation. The more personal the conversation, the more
effective it will be.
Some sales consultants make their clients' service appointments. The goal is to add value and
have your name be on the tip of their tongues. You want to assure that they will come back to
you when they buy their next vehicle.
forget that our most valuable and easiest customers are the ones who have already bought
from us. Get a customer management program such as ACT and use it. Call your customers
within 24 hours after the purchase to make sure everything is ok. If there is a problem, move
heaven and earth to fix it immediately.
Write a handwritten thank you note, then check in (with their permission) via a phone call,
email or newsletter at regular intervals. Make that contact personal. Use the information you
learned previously to continue building rapport. Ask how Johnny did in little league.
Congratulate them on Becky's graduation. The more personal the conversation, the more
effective it will be.
Some sales consultants make their clients' service appointments. The goal is to add value and
have your name be on the tip of their tongues. You want to assure that they will come back to
you when they buy their next vehicle.
3. Ask for Referrals
Your happy customers are your best salespeople. Let their great experience be a story that
they tell over and over. If you have done an exceptional job, don't hesitate to ask them to
recommend you to their friends, co-workers and family. If you explain that you build your
business with positive word of mouth, they'll be happy to help you out. Don't forget to thank
them for their referrals. Again, a hand written note is essential. Some states allow birddogging,
even if yours doesn't, you can "thank them" in a variety of other ways. A dinner at a
local restaurant, or a free oil change will show them that you are grateful.
they tell over and over. If you have done an exceptional job, don't hesitate to ask them to
recommend you to their friends, co-workers and family. If you explain that you build your
business with positive word of mouth, they'll be happy to help you out. Don't forget to thank
them for their referrals. Again, a hand written note is essential. Some states allow birddogging,
even if yours doesn't, you can "thank them" in a variety of other ways. A dinner at a
local restaurant, or a free oil change will show them that you are grateful.
If you follow these three simple steps you will maximize the profit you will get from your
customers! Work smarter, not harder.
customers! Work smarter, not harder.
Laurie Brown is an international speaker, trainer and consultant who works to help people improve their sales, service and presentation skills. She is the author of The Teleprompter Manual, for Executives, Politicians, Broadcasters and Speakers. Laurie can be contacted throughhttp://www.thedifference.net, or 1-877.999.3433, or at lauriebrown@thedifference.net. Article Source: http://EzineArticles.com/?expert=Laurie_Brown |
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