Every auto salesperson needs to have at least a rudimentary understanding of negotiating skills.
Before you allow yourself to say stuff like, "What will it take to make the sale?" - think about offering additional accessories, extended service contracts, terms of the contract or anything else you do have some control over. This could mean you control them either directly or indirectly.
Good salespeople are good negotiators. But so are good buyers.
Soon you'll begin to understand these laws and the "process" of negotiations. The normal stress, pressure and friction that had been getting in your way will disappear. You'll probably start having fun negotiating with other people.
1. Negotiating is always a two-way affair - If you ignore that fact, you will ignore the needs of your prospect; they will sense that you are trying to get the better of them, and that belief will always work against you.
2. Keep your emotions out of the process - Anger or sentimentality can lead to fuzzy thinking, flawed decisions and eventual regrets. Regrets over being too aggressive (or not aggressive enough), giving in too much (or not enough), striking a bad deal (or even one where you feel that you had gained too much of an upper hand). In any of these cases, it can lead to something that could have been avoided with a cooler, calmer demeanor.
3. Human emotion and "skill" level affects outcomes - Knowing a few negotiation tactics is not enough. Some tactics may not work on some prospects. You may run across a prospect that has an effective counter, then you are lost or you may not recognize tactics being used on you.
4. You can always improve negotiation skills - Negotiating is a learned activity. Constantly evaluate your performance and determine how you can improve.
5. Practice - Pay attention to what you are doing during negotiations. Plan them and re-evaluate your performance. Prepare for negotiations by practicing with someone in your dealership.
6. Primary desire is to create "Win-Win" situations - You don't want to negotiate with someone who only wants to beat you up. If you both win, a future sale is possible.
7. Be prepared to walk away - In the absence of this law, it will be easy for you to concede too much. The bottom line here is this: If you're not willing to walk away from the negotiation because you are not emotionally able to say "That's ok, I'll find another, more acceptable customer tomorrow," you'll lose. I guarantee it.
