The Rikess Group has worked with over 150 franchises to implement a One Price/Negotiation Free Sales process. Here are the top 10 reasons for considering this sales process:
- Give Women What They Want: Women purchase around half of the new and used vehicles and influence another 20%! Women define negotiating as “arguing” and dislike the traditional haggling process.
- Gen-Y Wants it: 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.
- 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- to 45-hour work week, and a volume-based compensation plan, you’ll be able to recruit a younger, college-educated, gender-balanced sales force.
- 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.
- Selling Expenses Go 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.
- 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 salesperson productivity – imagine every sales consultant selling two cars on a Saturday!
- Pricing to the 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.
- SSI Improvement: SSI impediments (transaction time; pressure; “game playing”; unknowledgeable sales consultants; etc.) are eliminated when moving to a more modern process.
- 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.
- 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 complimentary 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,
Mike Anderson
- 404-805-5009