Overcoming: Another Dealer Offered More For My Trade

In this episode, we walk through a real-life deal and show how to turn a price fight into a value-based conversation. You’ll learn a simple way to move buyers past the money talk and into the benefits they truly want.

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Transcript

Negotiating Value Over Price in Sales

David Lowe 0:00

Today's Prepare to Win . We wanted to answer the question how do I get my buyer to pay more than they said they want to pay ? How do I move them ? And we had a specific car in mind , an actual deal that went down , an actual question from a salesperson . And so me and my manager , we went in there and we showed them the pricing , the V Auto and the KBB , and you know we've already done . They talked money , money , money , money , money . What'd they do wrong ? Talk money , right . What should you be talking about here ? Value , value .

Grace Lupoi 0:51

Value . Hi guys , I'm Grace LaPloy and I'm here with David Lowe and we are on Season 2 of Prepare to Win , really excited . So we had . Our first season was really talking about principles that drive success , and now Season 2 is more so answering the questions that we get from those .

David Lowe 1:07

Yeah , yeah , Hello everybody , Welcome back to season two . And , by the way , this is brand new . We're shooting in front of a live studio audience , Just joking . So we have our four-day boot camp here . Everybody say hey . So we've got our four-day boot camp here . Great salespeople learning to master the sales principles and the process and the techniques that we teach . It's been a great class and we thought we would start off this new season with the class and it's really perfect because in the last season we went over a lot of the principles that drive success .

David Lowe 1:40

So you season one . You know there's natural laws kind of relate to it , and we talked about how we use those in the sales process . This season we're going to focus on questions coming from salespeople all over . We get questions all the time . Here's the situation what would you do , kind of thing , and so this season we're going to try to focus more on that . Now , by the way , a couple of things for our subscribers . If you're on the Dealership Playbook , you see there's quick links to sales tip videos , quick links , sales tips . You should go through those . There's a ton of answers for the questions you have in those sales tips . There's also a link to the Prepare to Win podcast on that too , so you can see that Is that cool , Okay , so let's start with the question of the day , and then we'll talk about that .

Grace Lupoi 2:29

Okay , so we've got a customer and they are buying a 2024 Jeep . When it was brand new it's a hybrid , by the way when it's brand new , it's $50,000 , and the sales price is $35,000 . It's one year old $35,000 and the sales price is $35,000 . It's one year old $35,000 . And they're trading in a 2018 Jeep with 119,000 miles and the offer for that is $10,000 . The market says it's worth $10,000 . So the difference is , of course , $25,000 . And this consultant called in and they said their customer was wanting to give them $20,000 . They were offered $15,000 somewhere else . For their old car , we're offering $10,000 . So what do we do and how do we not lose this deal ?

David Lowe 3:16

How do we close the deal ? You guys got the scenario . This is real life Buying a one-year-old car that was 50 grand , new , great price at 35 grand . Guy calls on the internet , finds it great price . I got a trade with 120,000 miles , this one's hybrid , this one's gas . I want to trade it in . And then he comes in and they work a deal and it's 25 grand plus tax and fees a difference price . And the guy wanted to pay 20 and his justification was hey , another dealer gave me 15 for my car off a higher priced car , right ? Isn't it funny ? So people like to use whatever comparisons they use , not even Steven , right ?

David Lowe 4:00

And so what could we have done to close this deal , right ? So what , I ask ? I ask what did you guys do , right ? And so me and my manager , we went in there and we showed them the pricing , the V auto and the KBB , and you know we've already done . They talked money , money , money , money , money . What did they do wrong To our money , right ?

David Lowe 4:29

What should you be talking about here ? Value , value , okay , everybody , take a blank piece of paper real quick and on it real fast , as fast as you can . Write three things that you could say you guys don't . You haven't seen the car , but you know the descriptions of what we said . Three benefits of making this deal . Three things they're getting for their money . Just write three things that come to your mind . Real quick , chris , we should play the Jeopardy music during this time , during the podcast . Three things , there's a ton of things .

David Lowe 5:04

But see , what most people do was , when they're confronted with price negotiations , they go and talk simply , what Price ? Now you guys learn from us that whenever somebody says the price is too high , we use the resell re-ask tool , don't we ? Step one , we show them what Empathy Good job . And then we take that empathy , we work from the heart , we go to their mind , we call that what Logic . And then the take that empathy , we work from the heart , we go to their mind , we call that what Logic . And then the third thing we're going to do is move from logic and redirect them back to what that whole package , that value . Once we've done that , we reassure them and we react . Okay , that's the principle .

David Lowe 5:44

Now we've got a story . How do we put this story into that ? Five-step resell ? Yeah , does that make sense ? You guys with me ? Okay , but we start within our mind what is the buyer getting for his mileage . Let's just go around the room . Grace is going to write them up as fast as we can put them . I know you guys are probably listening to the podcast online and I hope that's being a benefit to you . You can also watch it and see our smiling faces . But Grace is putting on the board right now . Everybody just go around and we're going to shout one out Gas mileage , hybrid to gas . How much is that going to save them ? Good Warranty , warranty . Oh my gosh , what is that worth ? Brand new , almost brand new , light , new Right , good , keep going .

David Lowe 6:27

More technology , more technology Great , good , keep going . I have more technology , more technology Great one . Keep going . I think you have rebates on hybrids . What is it Rebate on hybrids ? Okay , so use one though . But you're right , hybrid , they're picking up a different technology . Keep going . Just the feeling of a new car , feeling of a newer car , the joy of a newer car . Keep going . Safety feature has been upgraded . Keep going . Comfort difference right .

David Lowe 6:54

Future maintenance you got a brand new , reconditioned , a one-year-old car that was just reconditioned here and you're getting rid of a what A high-mile car that's going to need a lot of reconditioning , very good . Keep going . Sales tax on the trade Very good . Future savings Future savings on the car that they're trading in . Any reconditioning has to be done to that right . $50,000 to $35,000 . They're moving up how many years ? Six years , right . How many miles are they picking up ? 100,000 miles . It went from 20 to 100,000 miles , almost .

David Lowe 7:40

Are you guys with us ? What else do they have ? Do they have any other value in it ? Is there a lot that we could say of what they're getting this person saving 15 grand off a brand new car . So if you bought this car , drove it a year and I said I'll give you 15 grand less for it , but that's what he's doing Buying it for 15 grand less than the new one . So there's a lot of things . So here's what we're trying to say .

David Lowe 8:10

When our buyers talk price , what do we talk Value ? What are you getting for the money ? And often salespeople will get stuck at justifying the numbers instead of reminding what we gave the buyer already . You follow me , and the best way to get into this , of course , is empathy . Right , what is an empathy statement ? I want to pay 20 , not 25 grand , right , what is it Right ? I'm the same way . Every time I go to buy something . I'm at home thinking here's what I want to spend , but when I find what I really want , it's always normal . Isn't that normal ? Don't worry about it . The point of empathy is to take the pressure off the negotiations , true or false . Connect with the heart and then we use the logic . How did we come up with these numbers ? Anyway , there's a place to talk about .

David Lowe 9:06

The cool thing is , carlos , we went out to your car , right ? You and I walked around , scanned it in and it's 120,000 miles . But boy , it's nice for 120,000 miles . Put that in the computer and , of course , you've got a lot of equipment . Put that in the computer . Every car needs something and you know the stuff coming up on your car . The computer took all that into account . And , coming up on your car , the computer took all that in account and that's how we came up with the trade . Every car being bought sold the trade for you can trust it . And we did the same thing with your new Jeep , did the same thing . Put that in the computer .

David Lowe 9:39

And , by the way , that's why you called me from down south , didn't it ? You came 50 miles because we had a one-year-old car at a great price . True , true logic . I got information to back me up , but logic won't close this . I want to pay 20 grand . You follow me .

David Lowe 10:01

It's not that he doesn't see the numbers , it's just he doesn't feel like it's his best deal . Why ? Somebody poisoned the well and told him we'll give you 15 grand for your car Off of what I'll give . Give you 15 grand for your car Off of what I'll give you 100 grand for your car . I mean , what does that even mean ? Give me an apples to apples comparison . And if that was so great , why is he here now ? You understand the 15 off of . I could sell you mine for 40 , $15,000 for yours if it makes you feel better , but it's still what ? $25,000 . Yes or no ? Okay , you guys get that , okay .

David Lowe 10:37

So now that I've got the empathy and the logic , now can I go to all this ? We have real trade value , not just getting the 10 . We gave you that market discount up front of $2,000 on our used car . That's like what Twelve grand Kelly Blue Book or Blue Book Value , true ? And then , of course , you add in the what savings , tax savings , and you don't have to do anything to your old Jeep Reconditioning savings . You're saving a fortune . So you're getting a lot more for your trade than you think .

David Lowe 11:04

Plus , let's take a look at what you guys follow me . Could we go and flip the paper over , guys , and start writing out this value ? See , today's prepare to win is preparing us to think through situations before you get to them , right ? So if you feel like you're going to have a price problem with your customer or a difference problem they've indicated , I want you know whatever Before you leave your manager , maybe take your deal sheet and flip it over and make a list of everything that they're getting for their money . Make sense . I'll take you all the way back to 1980 .

David Lowe 11:45

1988 , when I started running my first dealership . No computers , imagine that . No cell phones . We had blank sheets and the salesman had to write it out . You know , christopher Wilson , buying this car , trading this car , had to write it in my hand , and then you had to . For me , I wouldn't work your deal until you wrote . You know , 1988 Escort LX , tinted windows , rear defroster , cassette player . You had to list everything or I wouldn't work your deal .

David Lowe 12:18

What were we doing then ? Putting the value in up front . Here's what you're getting . What For your money ? Does that make sense ? Okay , and then , of course , once I go through these , how much is this going to save you ? Do you think A thousand ? Could you ask him , instead of saying you're getting better gas amounts , could you say , hey , let's talk about all the things you're getting , because I think this deal packs a punch . It's a great deal for you . Could I take my time with that redirect in value ? Of course , this is not something . I've got these things . If you're going to put 20,000 miles a year on , how much is that going to save us annually ? Let's quickly calculate it out . That makes up that difference right there , true or false ? How about the warranty . Just one repair would cover that right . This is joy , safety , comfort , a future sales tax . We talked about savings .

David Lowe 13:11

Now , are you guys with me ? This is man . That's why this is a brilliant deal . What is that called ? Are you sure ? And then what I say ? So let's do it . Give me your signature , let me get it cleaned and filled up for you . Okay , what is my re-asking ? Without dropping one cent , say I'm confident . Good deal , good deal . And I just went through and explained to you why I thought it was . What Good deal .

David Lowe 13:44

Now there's a couple of closes in here . I don't know if we have time to do today A couple of closes that we might point out . And how many years are they moving up ? What's the cost per year ? 25 grand divided by six . How much is that per year ? Four grand , 44 .

David Lowe 14:02

To drive a car a year , what would it cost to lease a car like this ? Six or 700 hours a month ? The normal cost is seven to eight grand a year to drive a car like this , six or seven hundred dollars a month . The normal cost is seven to eight grand a year to drive a car and this person's moving up six years for what it's called a cost per year close . How about a cost per mile ? Close , they're moving up a hundred thousand miles . What is each mile worth ? According to how much do I write a check for every month when you drive your car ? Sixty-five cents a mile is the IRS reimbursement for mileage . The lease is 25 cents a mile depreciation only 65 cents a mile depreciation gas and upkeep right . So somewhere in the middle is the real cost . Let's say it's 40 or 45 cents . They're paying 25 cents . 100,000 miles for 25000 . So there's a cost per year and a cost per mile close here too , isn't there ?

Maximizing Value in Sales Negotiations

David Lowe 14:55

Now , personally , I don't want to shoot all my bullets all at once . I'm going to use the resell re-ask and probably do this . Does that make sense ? And if they say no again , then the five steps of negotiation kick in , don't they ? All right , let me see what I can Keep in mind . Look at something you know that you're driving 25 grand . Let's look at this cost per year because I think you're stealing this . Follow me , can I try that again ? Now I don't have to do all those up front . So 25 , two , just get another four grand . All right , let me see If I can get you . Save you 100 or two . You do that right Now . I go into my what . Oh no , I want five grand . How close to this ? 25 ? Can I tell them you'll go , you guys follow me . But can I use more story ? Can I use my cost per year as I'm soliciting influence and all ? Can I use more story ? Can I use my cost per year as I'm soliciting an influencer ? Can I use my cost per mile ?

David Lowe 15:56

Sales is about a few things . I would say . Sales is about confidence , it's about consistency , working that process and at the end , it's about creativity . How do I show them this works for you ? Does that make sense ? Today's Prepare to Win , we wanted to answer the question how do I get my buyer to pay more than they said they want to pay ? How do I move them ? And we had a specific car in mind , an actual deal that went down , an actual question from a salesperson . Does everybody have the path now ? Are you prepared to win ? When your buyer says I ain't paying that much , I want to pay less , can you go ahead and take value and put that into your five steps of resell , re-ask , empathy , logic , redirect , use it to reassure and reclose ? You see how it fits . Isn't that kind of cool . I just wanted to find the comments on that . Were you good I ?

Grace Lupoi 16:51

think so , we're good .

David Lowe 16:52

Rock and roll . So this is a different flavor for Prepare to Win . This year . Last year , all about principles . This year we want to try to connect those to your questions . If you liked this , go ahead , and if you liked ,