One Price Selling Archives - The Rikess Group One Price Selling Archives - The Rikess Group

The New Definition of Closing

Monday, 03 October 2016 by

According to Call Source, 80% of prospects contact a dealership before coming in—by phone, email, lead form, text or chat.  So when do you really close a sale? I believe the real close today starts before the prospect even visits your dealership; it begins with those initial telephone and Internet contacts.

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Create Your Own Digital Storefront

Monday, 03 October 2016 by

AutoNation recently announced the creation of their first Digital Storefront – which allows the website to transition from purely informational to transactional – offering customers the opportunity to do the majority of their auto sales transactions from the comfort of their home or office. I don’t see any reason why you can’t transform the automobile purchase by creating your own Digital Storefront.

Probably the biggest hurdle most dealers face is the reluctance of sales management to embrace a more transparent and efficient method of auto retailing.  

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Creating the Digital Dealership of the Future…Now

Monday, 03 October 2016 by

Two Problems – One Solution

Of the many challenges facing dealers today, two of the biggest include:

  1. Recruiting a younger, gender-balanced sales staff
  2. Effectively and cost efficiently handling incoming phone calls and Internet leads

Fortunately, there is a single way to address these challenges, and that is by creating a separate department to handle incoming phone calls and Internet leads staffed with salespeople who have the right skill sets to handle these leads.

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How Auto Dealers Created TrueCar, Carvana, and Vroom

Thursday, 11 February 2016 by

 

“Nature abhors a vacuum.” There would be no reason for “disrupters” like TrueCar, Carvana, and Vroom to exist if dealers provided customers with what the majority of them want. This includes:

  • Eliminating negotiations and move to a simple, transparent sales process
  • Eliminating wasted time in the sales process
  • Money-back guarantees
  • Market-based pricing
  • The convenience of having a car brought directly to the consumer

In are era of margin compression, how can dealers afford to pay TrueCar? Typically at least seven people get paid for selling a new car:

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Top 10 Reasons For Changing to a One Price Process

Friday, 23 May 2014 by

The Rikess Group has worked with over 150 franchises to implement a One Price/Negotiation Free Sales process. Below find the top 10 reasons for considering this sales process change:

  1. Give Women What They Want! Women purchase around half of new and used vehicles and influence another 20%! Women define negotiating as “arguing” and dislike the traditional haggling process
  2. Gen Y Wants it 2. Gen Y will make up 2/5ths of the auto shoppers by the end of 2012. They value transparency both in your store and online. The traditional process is not for them.
  3. Recruiting is EZ. Traditional dealers have to populate their showroom floors with something our society doesn’t produce – good negotiators. By eliminating negotiations, creating a 40-45 hour work week and a volume based compensation plan you’re able to recruit a younger, college educated, gender balanced sales force.

How to Raise Grosses by Limiting Negotiations

Friday, 23 May 2014 by

More and more dealers are implementing a Limited Negotiations Sales (LNS) process. The way the model works is dealers post a market-based price derived from a third party reference site; for new vehicles sites like Edmunds or KBB work just fine. The store establishes how much they are willing to negotiate from the market based price; let’s call it $200. This is a one-pencil form of negotiations – no multiple desk trips. One variation of the model allows qualified sales people to negotiate on their own without having to go to a manager; however, if the sales person negotiates off the posted price he/she loses about half of their commission. The other method for the LNS model is not allowing the sales people to negotiate; only the manager can drop off the posted price – in which case their compensation is lessened.

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