Top 10 Reasons For Changing to a One Price Process - The Rikess Group Top 10 Reasons For Changing to a One Price Process - The Rikess Group

Top 10 Reasons For Changing to a One Price Process

by / Friday, 23 May 2014 / Published in General, One Price Selling

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.
  4. Grosses Go Up? I know this seems counterintuitive…but, when you add value to a transaction you can charge more. A fast, simple, transparent process delivered by a sales associate who knows more about your product than the customer adds value.
  5. Selling Expense Goes Down. Traditional stores have one manager for every 2.5 sales consultants (including F/I); One Price stores tend to operate at a 1:4 or better ratio. Also, they are not paying a premium for management with outstanding negotiating skills (desking, F/I, etc.). Target selling expense – $550 per car sold.
  6. Sales Cycle Efficiency. Research has shown that 70% of auto transactions take four hours or more. The time it takes to sell a vehicle is the number one complaint of vehicle buyers. The One Price process averages less than 2 hours. By decreasing the sales cycle time you increase sales person productivity – imagine every sales consultant selling two cars on a Saturday!
  7. Pricing to Market. When you price your inventory in line with real market values it turns faster, resulting in floor plan credits and less or no wholesale losses.
  8. SSI Improvement. SSI impediments (transaction time; pressure; “game playing”; unknowledgeable sales consultants; etc.) are eliminated when moving to a more modern process.
  9. No 75/25 Split Programs. When you rate customers accurately you eliminate most chargebacks. 93 cents out of every reserve dollar sticks in a One Price store, eliminating the need for a rate splitting program.
  10. Will You Lead or Follow? At some point all cars will be sold in a negotiation free manner…

There is nothing easy about changing your sales process and culture; so, One Price isn’t for everyone. I’d be pleased to conduct a complementary 20 minute webinar to share more information about this sales process; please email me if you’re interested or visit: www.therikessgroup.com

It’s time to be nimble,

Mark Rikess

O)323-463-2373

C) 916-715-8129

 

www.therikessgroup.com

www.digitalairstrike.com

www.greendealersupport.com

Leave a Reply

TOP