Are you quoting price over phone and email?

[Jeff Kershner]

@Joe Webb just posted an article over on the blog around the age-old question of whether you Should or should NOT give a customer your best/lowest price over the phone and/or email?

We've discussed this a few times before here on DealerRefresh but it never hurts to re-visit a topic such as this one as consumer habits evolve around technology.

I'm sure as you read the article and the question, you have an initial response. Though your response or answer may not always be black & white. Most of us will start our answers off with "well, it depends...". And rightfully so because the truth is there can be many variables involved. But if we had to remove the variables to provide a blanket answer - where do you stand?

Even Joe questions himself on the overall correct answer to this question..

"The more I think about it, the more I question if my philosophy is correct, or, if our industry is ready to share “best pricing” in phone conversations."​

I personally recommend, 90% of the time, to answer the question with your best price. Knowing that most customers will end the conversation if you don't provide an answer, I would rather be in the game than out of the game.

What I never want to hear is "..your presence is your leverage". I know, I know - many managers and even industry trainers recommend this word track. I think it sounds horrible. But then again, I'm in the industry so maybe my opinion shouldn't matter.

The truth is, there's a reason the customer has contacted you about this particular vehicle (especially a used vehicle). There's a high probability this is the exact vehicle the customer is looking for. There's a good chance that if you have the vehicle priced right, the customer have recognized that. This is your opportunity to LOOSE. Let's do our damnedest to build value in ourselves and the dealership while we have the customer on the phone.

Mr/Ms. Customer, I surely appreciate you wanting to be sure you have the absolute best deal possible. I know I would want the same thing for myself. Given the current landscape and the fact that you can search and find thousands of like vehicles within minutes using the power of the internet, I'm quite confident you've done your homework and you already know this is a great deal. On top of our posted aggressive/lowest price, our dealership also offers this this and this so you wont have to spend more money down the road on this this and this - would you be able stop in this evening at 6:45 or would 7:15 be better for you? ​

This is word track I put together years ago, and it works.. most of the time.

So getting back to Joe's article and question...Are you giving out price over phone and/or email?
If you’re not, what word tracks are you using to overcome the question? A how often do the word tracks work?

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[Tallcool1]

We just give them the price. We will email it, text it, or give it verbally over the phone. We don't play keep away with customers.

 

[Bill Simmons]

What I never want to hear is "..your presence is your leverage". I know, I know - many managers and even industry trainers recommend this word track. I think it sounds horrible. But then again, I'm in the industry so maybe my opinion shouldn't matter..

I agree. "Your presence is your leverage" is another way of saying "just get 'em in". Word tracks are important to teach our sales staff but I believe you can be a lot more transparent than that.

 

[Joe Johnson]

Yeah, I like the idea of going for the appointment, and word tracks are definitely useful, but I have found that a lot of folks who are asking for a "best price" are shopping around with other dealers (especially new car customers). NOT answering their question is a good way to get yourself out of the game in most cases. Nothing new here... I usually send them a video and other useful information to try and stand out. Asking a few questions (will you be trading? Financing? Are you local? Etc) may help you quote a lower number than your competitors

With used cars I almost always take a swing at an appointment first. Here is an example of an email approach I have used that DOESN'T give the price on the first response. It has produced pretty good results for me with customers who don't give us much information:

Mr. Customer,

I will be happy to quote you an aggressive price on this Ford Mustang. What I want you to know is that we spend a lot of time researching our competition and making sure that we are in fact the lowest in the market. We review our internet prices every day! We also encourage you to shop around and bring in printouts of comparable vehicles that you have found. We will never miss a deal because of price or payments. All of our cars come with "XXXXXX" and "XXXXX"

I took the liberty of shooting you a quick video to go over the condition and explain a few of the features on this 5.0 convertible. Is this the exact model that you are looking for? What was it about this car that peaked your interest? If you can give me a better idea of your criteria, then I will be happy to look through the inventory at all of our locations and suggest a few other vehicles you might like. I am confident that we can find you the perfect car.

If you are available this afternoon, let me know when you can make it, and we can discuss all of this in person to save you some time. I will have the Mustang pulled up front when you get here so that you can check it out. I will also speak with my boss and see what kind of deal we can offer you if you decide to procede. Shoot me a text at XXX-XXX-XXXX and I will send you a link to the video and the price quote he comes back with directly to your phone. I look forward to working with you!

 

[Tallcool1]

Yeah, I like the idea of going for the appointment, and word tracks are definitely useful, but I have found that a lot of folks who are asking for a "best price" are shopping around with other dealers (especially new car customers). NOT answering their question is a good way to get yourself out of the game in most cases. Nothing new here... I usually send them a video and other useful information to try and stand out. Asking a few questions (will you be trading? Financing? Are you local? Etc) may help you quote a lower number than your competitors

With used cars I almost always take a swing at an appointment first. Here is an example of an email approach I have used that DOESN'T give the price on the first response. It has produced pretty good results for me with customers who don't give us much information:

Mr. Customer,

I will be happy to quote you an aggressive price on this Ford Mustang. What I want you to know is that we spend a lot of time researching our competition and making sure that we are in fact the lowest in the market. Sooooo....the price is the price? We review our internet prices every day! We also encourage you to shop around and bring in printouts of comparable vehicles that you have found. Why would I shop around and bring YOU a printout? We will never miss a deal because of price or payments. Oh, nevermind my first question, the price is the price unless I can find one cheaper. I understand. All of our cars come with "XXXXXX" and "XXXXX"

I took the liberty of shooting you a quick video to go over the condition and explain a few of the features on this 5.0 convertible. Is this the exact model that you are looking for? No, this is actually the exact vehicle that I am NOT looking for but thought what the heck, if the price is right I will buy it. What was it about this car that peaked your interest? If you can give me a better idea of your criteria, then I will be happy to look through the inventory at all of our locations and suggest a few other vehicles you might like. I am confident that we can find you the perfect car.

If you are available this afternoon, let me know when you can make it, and we can discuss all of this in person to save you some time. Ummmm, you are going to SAVE me time by having me drive and hour to get there and another hour home? I will have the Mustang pulled up front when you get here so that you can check it out. I will also speak with my boss and see what kind of deal we can offer you if you decide to procede. I have a great idea, why don't you "speak with your boss" and work me up a price right now, and "Shoot" it on over here right now? Shoot me a text at XXX-XXX-XXXX and I will send you a link to the video and the price quote he comes back with directly to your phone. I look forward to working with you!

Hang on a second, I just got 3 emails from your competitors...they actually answered my questions. Don't call me, I will call you. Thanks for all the time you saved me.

Nothing personal, but if someone asks a direct question I would recommend answering it first and foremost. Customers are smart enough to know that your script is nothing more than you avoiding the question...which is a really bad sign.

Just my opinion.

 

[Alex Snyder]

You only remember those few customers who bought a car for $100 less down the street and forget all the ones who showed up after you gave them a price quote.

 

[yagoparamo]

Can we divide this question between new and used? Do you treat them the same or different?

 

[Chris Leslie]

Every time this topic comes up. I always remember this video from years ago..

 

[Clay Toporski]

The problem with this question is that the idea of a "best price" is illogical. There is no such thing and dealers don't want to paint themselves into a corner. If, for new and used, you can convince a customer that you are offering them a "fair" price, build value in yourself and the dealership and ask for the appointment - I think you have the best chance at selling a car. To me, this doesn't mean giving them a stupid low price or not giving a price at all - it circumvents the problem and provides a win/win for everyone.

 

[dsflynn2000]

The problem with this question is that the idea of a "best price" is illogical. There is no such thing and dealers don't want to paint themselves into a corner. If, for new and used, you can convince a customer that you are offering them a "fair" price, build value in yourself and the dealership and ask for the appointment - I think you have the best chance at selling a car. To me, this doesn't mean giving them a stupid low price or not giving a price at all - it circumvents the problem and provides a win/win for everyone.

YES!.......They already want the vehicle or they wouldn't be calling. What they are looking for is insurance that the place is right and the person is right. Selling your dealership and yourself is what should be done at this point. Generating excitement about the vehicle in a low pressure non salesman manor.