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CUSTOMER SERVICE

Customers Hate Car Dealership Haggling,

So Why Do It?

By Mark Rikess

The data is overwhelming. Customers really
dislike the cat-and-mouse negotiation
process. Well over 80% are uncomfortable
with it, and furthermore, don’t understand
why they must endure a century-old
process in an online, Amazon.com world.

So why aren’t many dealers (who
incidentally have great websites and full-
time Internet Sales personnel) still not
giving customers what they want?

Because most dealers and sales managers
made their bones by being effective
negotiators. This is what they know.
They’re good at it. And a good part of
that negotiating technique has involved
controlling information. conversation but via the telephone, website, they’re ineffective in creating, staffing and
text and chat. This is where the real close managing a contemporary sales process.
The problem is twofold. takes place. What it takes to close these
deals-at-a-distance is product knowledge, The lack of a younger sales management
First, because of the Internet, the responsiveness and the delivery of value by team usually saddles dealerships with the
information-control ship has sailed. providing clear and complete information. antiquated control-and negotiation-based
sales process.
Second, you can’t control a selling process A dealer told me years ago that the way
that isn’t really a selling process anymore. to win online is by “out-serving your OK, the old-timers are one thing, but I
It’s a buying process largely completed competition.” am especially flummoxed by second-,
at prospects’ homes and offices where third- and fourth-generation dealers who
dealership personnel have no leverage When you go online to buy continue the control/negotiation approach
whatsoever. that laptop, smart watch or when they must know they are out of step
with what today’s consumers look for when
How’s that working out? One of my camera, Amazon doesn’t say, they shop: transparency, speed, simplicity,
colleagues recently bought a new car. He “You have to meet us at our fairness and the customer in control.
contacted three same-brand dealership office before we can answer
Internet departments. Two said “Give us When you go online to buy that laptop,
your phone number, we really need to talk.” your questions.” smart watch or camera, Amazon doesn’t
One answered all questions via email and say, “You have to meet us at our office
text. Guess what? That’s where he bought So back to the sales managers who want to before we can answer your questions.”
his car. continue doing what made them successful Why would anyone consent to that when
in the past. Most of them are easily in their shopping for anything online? Especially
Yet, many in our industry have not come to 50s and 60s and, like me (also not a young nowadays when plenty of dealerships will
grips with the fact that the main door of the person), challenged by changes in people, provide fast, transparent information and
dealership is no longer that glass rectangle technology and the marketplace. services. And competitive dealerships
in the front of the building. It’s the glass aren’t the consumer’s only option any more.
rectangle screen on prospective buyers’ At the same time, most dealers, (also not Many are turning to Lyft, Uber, Clutch,
desks or in their hands. spring chickens) are loyal to their sales Fair, Flexdrive, Zipcar and other services.
management teams, often having developed
Prospects enter your showroom online, close family relationships. It’s hard for a All that said, I understand the two primary
and interact not through face-to-face dealer to replace loyal managers, even if Continued on page 36
34 | GIADA Independent Auto Dealer JUNE 2018