DealerKnows
Where Do I Start?
  • Services
    • Training
    • Consulting
    • Creative Video
    • Performance Monitoring
    • CRM Analysis
    • Professional Speaking
    • Bundles
  • Products
    • TaskTeacher
    • PriceMatrix
    • Dealer Forensics
  • Clients
    • Results
    • Reviews
  • About
    • Joe Webb
    • Bill Playford
    • DK Team
    • Ask the Experts
  • Blog
  • Videos
    • Funny Videos
    • Educational Videos
    • Dealership Videos
    • Conference Videos
    • Make Me A Star
  • Contact Us
  • DealerKnows Summer Camp
  • Services
    • Training
    • Consulting
    • Creative Video
    • Performance Monitoring
    • CRM Analysis
    • Professional Speaking
    • Bundles
  • Products
    • TaskTeacher
    • PriceMatrix
    • Dealer Forensics
  • Clients
    • Results
    • Reviews
  • About
    • Joe Webb
    • Bill Playford
    • DK Team
    • Ask the Experts
  • Blog
  • Videos
    • Funny Videos
    • Educational Videos
    • Dealership Videos
    • Conference Videos
    • Make Me A Star
  • Contact Us
  • DealerKnows Summer Camp
Where Do I Start?

Is Negotiating Necessary?

Share With:

“Man alive, I just can’t wait to get in front of that salesperson and argue, bicker, balk, banter, and haggle over the price of a vehicle for the next 2 hours.” ~ said no customer ever.

And yet, during the DrivingSales President’s Club in NYC last week, a study they released stated the opposite.

Automotive data

I apologize for the low quality picture. I use a Droid.

Apparently, 17% of the people surveyed chose the statement: “I like to negotiate and will grind hard until I am confident I’m getting the lowest price possible.”

Let’s talk semantics. I’m not one to pit words against numbers, but I don’t think “negotiate” was the right word to use. I  don’t believe the majority of customers fully understand what negotiating is, or what they are negotiating for. Negotiating is often not necessary in today’s automotive market. Negotiating is over.

A study from Sageworks reported that dealers made an average of $0.03/$1.00 profit on vehicles in 2013, and I doubt that number has gone up since. Negotiating price on a new car is literally arguing over pennies. I know I, for one, don’t have time to spend hours arguing over who deserves .35 cents more.

negotiatingAt DealerKnows, I mystery shop HUNDREDS of dealers every year, and with our lead/ISM/BDC monitoring and grading technology, I’m able to see the dialogue between dealer and prospects more than most. This gives me insight as to what consumers are discussing with the dealership long before the purchase. The “negotiating” or “hard grinding” of today isn’t the need to bicker over dollars and cents. Instead, it is a consumer’s demand for transparency and open, responsive communications before the consumer agrees to a deal.

We’ve all seen the data that 40% of consumers contact the dealership before arriving. They are trying to determine if the dealer is trustworthy. Customers don’t NEED to know what their monthly payment will be before they visit the dealership, but they call/email and “grind” simply to see if the dealer is willing to answer the question. If not, the dealer is ruled out.  The “negotiating” people (in the study) say they want to engage in takes place in a different area today than it did ten years ago.  It takes place online or on the phone, and not in person. Hence, why “negotiating” as a term is not the correct vocabulary.

[blockquote name=”Melissa Roberts” organization=”@melissarobert55″]Yesterday’s “negotiating” is today’s demand for transparency. They seek information over dollars and cents.[/blockquote]

Dealers need to allure more than evade in their customer communications. Pricing isn’t a secret any longer. Consumers don’t need the dealer or their website to find out what an average price should be on a new or used vehicle. If the dealer is going to play pretend, and act like price is a secret, withholding information from their potential customers, to the bottom of the list they go.

And this has been a “word ball” from Melissa Roberts of DealerKnows.

Melissa Roberts
mroberts • April 9, 2015 • Gotta' Share,Internet Strategy,Sales Training

Tell Me About It

Click here to cancel reply.

  • Best Of
  • Most Read
  • Three Questions That Need to Be Answered For 2023: Why Does It Matter Now?
    By Bill Playford
    December 29, 2022
  • 3 Important Questions That Need Answering for 2023
    By Bill Playford
    December 19, 2022
  • improv comedyHow Improv Comedy Builds Companies
    By Joe Webb
    July 2, 2019
  • NYE PartyWhat My Crazy NYE Party Can Teach Us About Marketing in 2019
    By Joe Webb
    January 3, 2019
  • 3 Important Questions That Need Answering for 2023
    By Bill Playford
    December 19, 2022
  • sales managementThe Manager Who Doesn’t: A Guide to Better Sales Management
    By Joe Webb
    June 2, 2016
  • sacred cowCan you Kill a Sacred Cow?
    By Joe Webb
    January 12, 2016
  • The LeftoversWhat Happens When They Disappear?
    By Bill Playford
    August 29, 2015

Categories

  • All About BDCs
  • Ask the Expert
  • Comic Strips
  • Competitive Edge
  • DealerKnows Data
  • DealerKnows Press
  • DealerKnows Testimonials
  • Digital Marketing
  • Digital Marketing Conferences
  • Gotta’ Share
  • Internet Strategy
  • Lead Management and Process
  • Leadership and Sales Management
  • Quotables
  • Sales Training
  • Small Business Consulting
  • Social Media and Reputation Management
  • Technology
  • Vendor Relations
  • Websites and Online Search

Search Posts

Sign Up for DealerKnews

There are craptastic newsletters, then there is DealerKnews. Get all of our posts without having to set up a RSS feed. Start getting a monthly megadose of geniusness. Its like steroids for your brain.

Latest from the Blog

Announcing: 2023 DealerKnows Summer Camp – Most Unique Automotive Event of the Year!by Joe WebbRead blog post

Contact us

We really, really, really want to talk to you.

Get In Touch with Us

Sign Up for DealerKnews

There are craptastic newsletters, then there is DealerKnews. Get all of our posts without having to set up a RSS feed. Start getting a monthly megadose of geniusness. It’s like steroids for your brain.

© 2023 DealerKnows | Privacy Policy | Terms of Use

Powered by Launch Digital Marketing.

2023 DealerKnows Summer Camp

The Only Automotive Conference You’d Ever Regret Missing

Location: Camp Blue Ridge | Clayton, GA

Date: May 23-25, 2023

Register Today!