Wednesday, November 22, 2006

Crazy Car Sales Tactics

When you buy a car--whether online or in person, you want to be treated with respect--not like an idiot. Here's a hilarious article from Darryl Siry on the bizarre sales tactics practiced by most car dealerships...

Darryl writes:

Since I am joining a car company I thought it would be interesting to buy some of the books out there that "teach you how to sell cars." Knowing that much of the body of knowledge out there would not be applicable to Tesla's business model - I still thought it would be good to get acquainted with the general field of car sales.

I am now acquainted! In fact, reading Mr. Davis' book was like watching an episode of Jerry Springer. It was also like a voyeuristic peak through the curtains into the seamy world of car sales in the US. Mind you - the book seems targeted toward used car salespeople - I think.

I started to eagerly highlight passages that I thought were real winners and candidates for my blog , but pretty soon I was just highlighting everything. It was that good! I started to be concerned because in his reservation of copyrights he says "no part of this book can be reproduced...except for brief quotations embodies (sic) in critical essay, article or review.

Now, I might consider this a review, but I would certainly find it a challenge to be brief. In fact, I may end up quoting half the book. This sales manual embodies all that I find physically and mentally repulsive about the way cars are sold today (at dealerships). Let me offer some highlights:

pg. 11: "Now that you have taken physical and emotional control, keeping the customer from mulling around the inventory and becoming confused, you can feel good about being professional, thoughtful and helpful.

"I can't help but laugh out loud as I type it! I just picture myself walking around aimlessly at the car dealer drooling, wondering when the professional salesman will come save me from my incessant mulling around the inventory. Thank god he is so professional and thoughtful.

pg 26: "Now that your buyer is excited and you have control, maintain it! Maintain control by starting in front of the vehicle and, working in a counter clock-wise motion, around the vehicle. Maintain a fluid motion, which is not too fast. If the motion is too fast, the customers can become confused and lose interest. However, the motion should not be too slow or they will become bored and detracted(sic) and it will be difficult for you to assert control, if they begin to mentally wander.

"There is so much depth and richness in this passage. Let me start with a question that is unanswered in the book: why counter-clockwise? Because it is more effective at hypnotizing the customer as you move in a fluid motion - not so fast! You might confuse and bedazzle me. When I am bedazzled you may lose your control of my mind. At the very least I am bound to become detracted.

pg 32: "As the seller you must always maintain control.

"pg 25: "In order to maintain control, you may want to say...'wait here. I'll be right back'"

pg 14: "...you should be able to gain physical control by saying 'Follow me!'"

What's with all this physical and emotional control bull? and then you get to pg 42 where the following bizarre statement is found:

"If the customers do not know what your next step will be they cannot object to it. Recall that "non-confrontational selling" is the constructive point of this book."

It's probably accurate to say that I can't object to something I have no knowledge of, but I fail to see how asserting physical and emotional control and manipulating people by not allowing them to assert control on their own is "non-confrontational"

A great example of how to not let your customer object is what to do when you are returning from the test drive:

pg 43: "When you return to the dealership, it is time for your first trial close. Tell your customer, "Park in the sold row." If your dealership does not have a sold row, direct them to an empty parking spot and refer to it as the sold row. If they do not object when you call it the sold row, your sales presentation is probably going well."

Either that or you have successfully intimidated them into not saying what is truly on their mind, like "What the f*k? I haven't bought the car!"

I could go on and on, but I think you get the point. The problem I have with auto distribution these days, and perhaps the problem that has afflicted American auto companies, is that the sales engine of the traditional auto dealership has not evolved from the 1950's style paternalistic shove it down my throat because you know better than me approach. The feeling I get when I go to a car dealership is the same feeling I get when I am at a bar and a loud, obviously drunk group of guys walk in and immediately start trouble. I get fired up.

How about asking me what the heck I want and providing some service? How about not trying to control me and instead helping me out, even if it means I don't park it in the sold row? The general issue I object to here, and have objected to in this blog before, is this notion that the proper way to approach sales is to manipulate me into a sale that day, using subtle intimidation and beguiling techniques such as the fluid counter-clockwise motion (which gets me every time.)

Why does the auto industry even do this anymore? Why can't I go to a dealership where I can try out models, look at things and determine what I want and then order a car to my specifications to be picked up in 8 weeks or so. In the current model, manufacturers stuff the inventory pipeline and it is the job of the car dealer to push cars out no matter what. Part of the reason, in my opinion, is that the products are inferior (again - talking about mass market US autos) so they need to have some serious push behind them. Aggressive salespeople, incentives, "big sales", circus-like sales lots.

It doesn't have to be that way - there are plenty of examples of niche companies that have already moved away from that model. There are certainly plenty of ways for customers to assert themselves and avoid the horrible experience of going to an auto dealership. The last car we bought was from Carstelligent. It went swimmingly and we got exactly what we wanted. The BMW M3 I got before that was ordered to my specification, and guess what - I didn't mind paying full sticker for that privilege.

This article comes from marketing expert Darryl Siry

Darryl is absolutely correct: there are a number of ways for car buyers to avoid the "horrible" experience of going to an auto dealership. I'll add too that you can get a GREAT car without going new.

To YOUR car buying success...

-Ted Olson
Medway Imports
Safe Online Used Cars Sales