How to Increase Your Gross Back
November 3, 2014 0
Hi, it’s Adrian Law here from Automotive Stars and in today’s blog I’m going to share with you 3 effective strategies on –
How to Increase Your Gross.
When I speak to sales people and sales managers around the country, a lot of them are saying that it’s much harder to make gross and are struggling with that recently.
They are mainly blaming the internet and customers shopping harder than ever before.
I actually disagree. I think it comes down to the strategies that your sales managers and sales people are using; or should I say NOT using..
If you work with us you can get access to 24 key strategies on how to increase your gross. As I said before, today I’m going to share with you 3
With the first one, I’m going to give you an example of a guy that I’ve trained successfully over the years. Martin is his name and previously Martin has sold Ford, Toyota and also Hyundai, and he grossed exceptionally well across all three different brands.
What he did was quite in genius, and this is what we teach; but these are Martin’s words not mine. He said
“Give a $40,000 presentation on a $20,000 car.”
He’s meaning that you talk with passion. That you really give energy to your presentation. You also know your product. Martin knows his product inside out and could sell Hyundai over Ford, Ford over Toyota, Toyota over Hyundai and every combination.
How come? Because it doesn’t really matter what product you are selling. Well it does, but if you know the strengths and weaknesses of each of the products you have and also your competition has, it makes is so much more easy to deliver a great presentation to the customer.
Another thing that Martin does very well that we teach. Is that he spends quality time with his customers. He would spend all day if necessary to get a deal. After that, customers often don’t need or want to go anywhere else.
If they’ve had a great presentation, a fantastic Road to a Sale and you’ve found out not only what they need and want but also about them and really show interest. Why would they want to go anywhere else? They wouldn’t.
If your sales people and business manager aren’t doing this already, I highly recommend that they do; and that is –
‘Talk in Weekly Payments.’
Before you get on the defensive, I’m not meaning that all of a sudden your sales people turn into finance experts. I couldn’t disagree with that more. However, rather than them talking about a car that costs $30,000, $40,000 or more. Why not break it down into weekly payments?
Let’s say for example that a customer sees a car that’s $20,000.
A smart sales person would say. “Mrs Jones, that’s approximately $120 per week, less with a trade in and/or a deposit. What weekly budget did you have in mind?
Then, if he or she gets an answer from the customer, then they can promote their business manager and it’s win/win for everybody.
Well, who’s going to negotiate when it’s $120 a week? Are they going to say ‘I want it for $115?’ Highly likely not. Especially when you compare it to them wanting $1000,s off the deal on a $20,000 car.
Secondly, customers can afford a lot more than they think. They can buy a full pack with after market, purchase an extended warranty and it has so many other benefits for them.
They can get a better car, better extra’s and the sales person and dealership gets to make more gross and more sales. It truly is win/win.
It’s really important how the sales person sets up the business manager in a positive way. I’ve got several clients that are exceptional at this. If you’d like to know more, feel free to get in touch.
Finally, the third strategy out of 24 that you can get access to if you work with us.
It’s not a newbie. It’s been around a long, long time and when I say it you might think this is obvious to you and your dealership. It’s simply –
‘Do Everything That You Can to Sell to The Customer on The Day.’
You might be thinking – Adrian, I know this, my dealership knows this, I drill it into them 100 times a week.
This is primarily for the sales people, and there’s lots of them in the industry these days;
that are too nice.
The average sale in Australia, happens after the order has been asked for between 3 and 4 times.
Nice people don’t ask 3 or 4 times for the order. They just don’t.
You know as well as I do, as soon as the customer leaves your dealership, even if they come back. Your gross is going down.
In reference to these ‘nice’ sales people, I used to be one of them; so I can empathise.
The challenge was that I thought I needed to become someone who I didn’t want to be.
Someone that was pushy, I thought I needed to become the typical used car sales person and do pretty much anything to I could to get a customer into a car.
This couldn’t be further from the truth but a lot of sales people, especially the nice ones;
don’t understand that.
Last month, I was asked to run a specific session for sales people that were struggling to sell on the day. One of the guys in the class, his name is Ian. On the 16th of the month he was only on one deal for the month and he’s a competent sales person. It might not sound like it but he’s been selling for 20+ years in different industries.
Just by taking on board a couple of the strategies that we shared; when I saw Ian the very next week he was only one off target. I think that his target is 14, so he’s sold a lot of cars in a very short space of time just by implementing a few new ideas..
It’s pretty impressive and if you’ve got some ‘nice’ sales people, it’s worth investing in them to build up their courage to ask for the order 3 or 4 times. It’s really earning the right to write.
I had to get the lesson, big time many, many years ago when I was too nice. It doesn’t take too much to build up your confidence just to ask. People won’t be offended. Just ask for the order 3 or 4 times and you’ll often get the deal.
That’s 3 strategies on how to increase your gross. Hopefully you’ve enjoyed it. Please like us on Facebook and get in touch if you have any questions, comments or you’d like to know more about what we do here at Automotive Stars.
I’m Adrian Law from AutomotiveStars.com.au we’ll see you soon!
Author, Speaker and Sales Expert
"Adrian Law has run over 12,000 training sessions for automotive professionals, Australia wide.
He provides results based training where the progress in individuals is measurable
Adrian has a unique ability to relate and entrust all ages and experiences. Providing both sales and life skills, so the new training gets implemented."