Negotiation is defined as “discussion aimed at reaching an agreement.”
Sometimes the first proposal you present is not going to be the one accepted. Customers may raise objections to price, payment, down payment, term, trade, rate, etc.
Anticipate that you might have to negotiate.
Think of negotiating as justifying your position while trying to understand your customers’ position.
Always smile and maintain a positive attitude. Understand that should create the feeling of winning for both you and your customers. They need to feel like they won!
Never fear to negotiate.
Never negotiate out of fear.
Never lie.
Make your customers feel like they won!
Important Points to remember
1. Present figures with confidence.
Be confident and ask the customer to choose from one of the options given. Assume the close.
The worst way to present figures is to ask the customers “If the numbers you are presenting work them?” You are promoting doubt. You do not even believe in your own numbers.
2. Down payment and monthly payments.
If your customer has concerns over the down and monthly payments, isolate the one that is more important. Keep in mind that more down payment equals more gross for you and lower monthly payment for your customer. Do not leave money on the table.
3. Pay attention to everyone who is with your customer.
If you are dealing with a couple, family or friends, make sure to get them involved in decisions. Congratulate them all when the deal is closed. You don’t want to deal with the wife and think you closed the deal just to find out in a few minutes the husband is already talking the wife out of the deal. Make sure everyone is on the same page.
4. Negotiating involves give and take.
When your customers ask you to make adjustments to price, trade value, down or monthly payments always ask for something in exchange. This simple approach will help you hold more gross by showing your customers that they can’t just get something of value without giving you something of value in exchange. It will make them understand that you have to justify any adjustment. What can you ask for? Be creative. It may be something related with the vehicle, deal and accessories. It can also be something like additional referrals or a promise to hand a number of your business cards to their friends and neighbors.
5. Reinforce your customer’s decision.
When your customers select one of the options you presented, reinforce their decision by immediately shaking hands and congratulating them for making the right decision.