C R A Z Y D O U G 'S
	Auto Consulting

NEGOTIATION: This process should be a business like negotiation of give and take...

H O W E V E R

Some salespeople and some dealerships have structured sales programs that make the negotiation steps of the sale a nightmare.

How Can You Overcome This Situation

Needless to say the salesperson is going to try to take control of the sales process. You, as the purchaser, must levelage yourself to where you have some control. Once in the sales booth, the salesperson will start asking questions that are slanted to require yes answers. He will utilize body kinetics by nodding his head, motions with his hands, and eye contact. This is going to occur. You only need to be aware that it is happening to you and control your emotions... Any good salesperson will read the emotional factor and play on your emotions for additional profits.

As difficult as it may be, you must try to disassociate yourself from some of your emotions. Try your best to have a business like face and attitude. Unfortunately the salesperson will use your emotions against you in order to get more money for the vehicle that he is trying sell you. (A later chapter on the salesperson trying to switch vehicles on you.)

There are several sales procedures that the salesperson might try to initiate. The first one is called the four squares method. This entails the salesperson taking a form and either he will write in the numbers, or he will excuse himself and see his sales manager who will put the numbers on the form.

The form is called the four square method because the paper is divided into four sections with four different numbers on it. These sections are:

• Selling Price: the first number is usually the list price.
• Trade Price: this number is usually wholesale value or less for your trade in.
• Difference Price: no more that the difference in the selling vehicle and your trade in.
• Monthly Payment(s): this is the monthly payment (usually quoted initially for months).

All of these numbers are purposely quoted at max pricing. The dealership sales force is:

1. Trying to mentally raise your budgeted figure.
2. Trying to make as much profit as possible. (I have nothing against making a profit. The dealership must be profitable in order to stay in business; however, I am against poor business practices and deceitful salespeople.)

Once these numbers are ready the salesperson will present them to you in an orderly fashion where he will ask for the sale. In other words, he will turn the form around to you and present you with a pen in order to approve the sales transaction. NEVER, NEVER, NEVER...sign up on the first pencil. (sales term meaning the sales manager has taken a pencil and put the first numbers on the form)

The salesperson is going to try and read your thoughts and emotions as to which part of the four square method is most important to you. If you comment on:

• Price of car: that price is too high
• Trade in price: you are not giving me enough for my car
• Difference: I am not going to pay that price
• Monthly payment: I am not going to pay more than...

All the above are just some of the phases that the salesperson will focus on.

From here the salesperson will concentrate on your objections and try to overcome them to his favor (i.e. more profit). He should use the features/benefits technique. He will sell you on the perceived value of his vehicle. Once again he will try to get you into the saying yes mood with questions like:

1. You do like the car, don't you?
2. You like the color, don't you?
3. You like the 1,000 watt Sound to the Wall System, don't you?

The salesperson will probably try to concentrate on monthly payments. It is much easier for him to raise you $3.00 a month than try to raise you $100.00 on the price. In fact he will probably make a statement to the effect: "In other words Mr. Jones if the monthly payment is $xxx.xx you will buy the car no matter about anything else, is that correct?" If you have ever been involved in an auto sales transaction, this has probably occurred. You have made an offer and the salesperson has gone to his sales manager in order to get approval. Upon his return he states that everything is OK, but the payment is $3.23 off. You will probably OK this number because $3.23 is not that much. Well, you just paid $100.00 more for the automobile. Maybe it took the $3.23 to get the deal and...maybe not.

Another sales technique is for the salesperson to "paint a picture". By this I mean the salesperson will describe, in detail, you driving down the Hwy XX with the windows down, the wind blowing in your face, that 1000 watt Sound System tuned to your favorite station? And what will everyone else think about your new car i.e. family, friends, business associates, etc.?

There are many variations of the four square method, this is the most basic.

N E X T CHAPTER TWO