No Negotiating?

[JessicaRuth]

Does your dealership have a no haggle, non negotiating selling environment?

Today while visiting a dealership I saw a training room packed with employees learning how to adopt a new program recently implemented - No negotiating.

So, would this work at your dealership? Is your dealership's why buy message strong enough to take on a challenge like this?

Let me know your thoughts, ideas and strategies!

 

[Jlewis74]

The store I worked at for many years was a "One Price" store, I think it is a great system but you have to be 100% in and have buy in from your staff. The fact is you cant come down on price if you ever do you loose everything you have worked for in selling your brand. You price all your inventory new and used and thats the price, this means every time a rebate changes you have to change the price. Trade-ins are done at ACV so you have to be confident in your number and be able to show why its the correct number. We would take customers along on trade-in evaluations and let them sell you their car all while pointing out things that will affect the value. There are 20 groups dedicated to this and I would advise joining one as your will need all the help you can get. There is a process for every customer from a mission statement when you are doing the meet and greet all the way through the write up. I think their is a group Welcome to The Rikess Group | Dealer Training Services that offer consulting services to implement this. I will not say why it failed at the store I worked at as it happened after I left but still feel its a great process!

 

[joe.pistell]

One Price message has to be EVERYWHERE the shopper is. TV, Radio, Print, Web, business cards, window stickers, merchandising points, damn near everywhere, cuz those darn shoppers love to negotiate!

 

[ed.brooks]

One Price message has to be EVERYWHERE the shopper is. TV, Radio, Print, Web, business cards, window stickers, merchandising points, damn near everywhere, cuz those darn shoppers love to negotiate!

I don't think it's that shoppers just LOVE to negotiate, it's that they have been trained to negotiate by dealers...

 

[Ralph Ebersole]

I don't think it's that shoppers just LOVE to negotiate, it's that they have been trained to negotiate by dealers...

While we have trained them to do so, the fact is that shoppers are always wondering if they got a "good deal" during and after the sale. I think most one price dealers will tell you that many consumers still try to negotiate. One price is a niche market today. Will it change? I doubt it. A large segment of the industry converted to one price in the mid 90's. Saturn was a ral eye opener at that time. Very few stayed onboard. The problem is not the vehicle the consumer is purchasing or the rate for financing, but the trade. The variance in the opinion of the trade value continues to cause the consumer to open the negotiation process, even in one price stores.

 

[jay.lynch]

I have been out of retail for a decade... Post retail I can honestly say I have learned more about my craft than I thought possible as a trainer, consultant, and "vendor." Having said that, I have seen a number of dealers attempt a variety of processes. The majority of dealerships I see shifting sales process, for the most part, fall into one category:

Under performing dealer. Dealers who fit this category do not understand how to execute dealership 101. If you do not do the basics, inspect what you expect, and hold people accountable nothing is going to change. The good news... Fixing a dealership is never any more difficult than implementing dealership 101 -- regardless of sales process.

 

[joe.pistell]

Here's my view of our world. Negotiating a sale is contextual. Do shoppers negotiate a price if they are at:

• Yard Sale = Yes
• Grocery Store = No
• Flea Market = Yes
• Gas Station = NO
• Best Buy = Depends, bring your phone
• Oil Change = No
• Sell your car on the side of the road = You will be counter-offered
• Hair Cut = No
• Buy a house = Hell yes
• Rent a home/apartment = no
• Buy a car = Yes

It's generations old and it's all about context. Think about it.

I LOVE this video, from my 3 year old blog post: Evil Dealers and the Slaughter of the Innocents


p.s. Generally speaking, when it comes to negotiation, in a retail setting, where supply is greater than demand, the BUYER owns the discussion. No one has trained the buyer to negotiate. We negotiate because we have to.

p.p.s. Wouldn't it be interesting if a shopper landed on a car and we RAISED the price once they showed interest (can anyone say "pricing science"

 

[Sachin Raja]

We operate with a one price mentality in our pre-owned independent store (AUTODOME, Selling Used Cars and Trucks in Mississauga, Toronto, Brampton| Used Cars Mississauga). We have 220-250 used vehicles, primarily SUVs & Minivans in stock. We call it Fair Pricing Policy. As others have said, you absolutely must believe in it and have buy in from the staff. You have to be willing to walk a customer over $50.

You also have to know why you are moving to a one price model. We did it out of a desire to treat all of our customers equally. We didn't feel right that the customers who were the most difficult got the best deal and the most pleasant customers paid full price. It has been our life philosophy to always treat everyone equally and fairly no matter what their background is or what their situation is. Everyone deserves respect and to not be judged. We have the Golden Rule Poster in the Showroom that essentially says Treat others as you want to be treated (got the poster from Scarborough Missions https://www.scarboromissions.ca/Golden_rule/images/large_golden_rule_poster.jpg).

When we switched from a traditional model of negotiating to fixed price, we were willing to have a decrease in sales. It isn't for everyone. The majority of our customers love it, and appreciate it (especially because they know our mindset and how we operate). There are also a lot of customers who do not like it, in fact they hate it. Some customers will walk in and the second they find out you wont negotiate they walk out and want nothing to do with you.

I feel that if you are doing it for purposes to increase sales or make life easier, it will not be successful. You must view it as a Positive and not a negative. In a lot of ways it is a huge positive, you can focus on finding the right vehicle for the customer instead of spending all the time discussing price.

If anyone has any questions, would be happy to answer!

Thanks to Ryan Thompson for sending the thread my way

 

[cmjerry4531]

If you have buy in and the right training it works. Rydell Auto has produced #1 Volume Chevy and Ford stores in Minnesota, as well as highest volume stores in other states.