Price-Based Sales Aren’t as Important as You Think
People are paying more for cars than they ever have.
Edmunds, a leading car information and shopping platform released data that spells out year-over-year increases in the average car sale price. From December 2016 to December 2017, the average price paid per unit increased by 3 percent. From December 2015 to December 2017, it’s increased 13 percent.
The increase comes despite lower total sales. It’s a scenario that typically sees dealerships offering discounts to roll additional units for the year’s totals, but the data contradicts the expectation.
Jessica Caldwell, executive director of industry analysis at Edmunds, said, "There are fewer buyers in the market right now, but those who are there are not only feeling confident, they're willing to shell out the extra cash to get a larger vehicle with all the bells and whistles. They know what they want, and they are willing to accept the higher costs."
Present the Value
When customers know what they want, they know what it costs to get it. It takes away the burden of selling the car. Instead, the burden is on presenting the value proposition for the customer, not just in the vehicle itself but in the dealership.
It’s like this: you have the product, and the customer has trusted you for a positive shopping experience. If you can’t deliver, they’ll go somewhere else where they’ll get the treatment they want. The deal is incumbent on giving accurate, knowledgeable advice, a thorough vehicle presentation, and promising the future service the customer expects. That’s the value a customer wants.
How Do You Do It?
• Discover what the customer finds most important for their shopping experience. Then, strive toward that goal with each step of the sales process.
• Perform the complete process. Just because a shopper knows the vehicle they want doesn’t detract from the value you must present. Stay true to a customer-centric shopping process.
• Don’t sell based on price. The customer knows the price and wants the unit. Find out what will solidify the deal – service assurance, financing details, or the like. But don’t offer a discount, because the sale isn’t always about price.
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