The most under-utilized word in the sales vocabulary

Again this is based upon my car sales experience.

I've found that the most dominating and seldomly used word in the sales consultants vocabulary is the word "No". Now it can not be used all the time, but there are a lot of instances where saying NO is probably the most powerful closing tool I have used. Alot of sales people still are under the impression "The customer is always right." What I've found is that a majority of the time they aren't. Sales people go out of their way to keep a customer happy, and a majority of time it costs a sales person his/her gross to do it. I have found that on the difficult closes, the ones that you end up negoting what seems like an eternity with, simply telling them no works best. Now of course this only works well if you have followed the sales process and have built value to your product. Usually telling a customer no works well with the fear of lose close. Below is an actual example that happened last week on a truck sale that I ended up grossing fairly on.

I had been negotiating with the customer for about 20 mins and the customer still at a ridiculus offer. We were at 675 monthly payments and the customer wanted no more than 600. I had tried about 4 other closes and to no avail. Finally I stood up shook the customers hand and told him "I'm sorry Mr. Customer I understand you are looking for a great deal, and I am giving you a great one, but unfortunately it's not the deal your looking for. I wish you the best of luck and give me a call if you need anything." My manager heard this from his office and was giving me a WTF are you doing look bcs we were still showing him the deal at Full Sticker price, and holding back 1000 on his trade. I started walking to my managers office and the customer was sitting there dumbfounded as well. He got up and started following me and said he would pay the 675 only if we got him 2000 more for his trade.
"Sir unfortunately we are currently $4000 dollars off on the deal and I don't have another $2000 for the trade." Again I started walking to the office and he stops me again and says if we throw in the leather seats we have a deal.
"Sir, adding leather to the vehicle costs us about $2750, and if I don't have $2000 more to give on the trade, how am I going to get $2750 to put the leather in? I'm sorry sir I can't, but I wish you the best of luck."
He stopped me AGAIN and says ok just give me free tint. "Mr. Customer, I really want to earn your business and if I had the money, believe me I wouldn't let $2000 dollars keep us from making a deal, but I don't have anything sir. This is the best I can do."
I started walking off and paused a moment, and turned around.
"Mr. Customer, I can tell you really want to buy this vehicle, and I really want you to have it... I'm not promising anything, but if I COULD get the payments to $650 with the vehicle as is, can we make a deal today?"
Of course he said yes, I went to the managers office told him to give him another 500 for the trade, leaving us holding back 500 and closed the customer at 660. The customer loves his vehicle and has sent me two referals so far.

I know this is an example of a fear of loss close, but it also shows the power of the word No. Again you can't use it in every situation but, you can use it quite a bit and it greatly helps your gross.

Just curious how many of you guys have ever tried to tell a customer no, and what the results were.

your lucky the client had no backbone.I would have walked.

It is a tall order to "build value" when you are "still showing him the deal at Full Sticker price, and holding back 1000 on his trade."

How is that "value" when even your own sales manager was ready to give the customer a better deal--not to mention another dealer?

If you were at sticker price in an arena where discounts on most cars are the rule rather than exception, and you had a prospect who was that unsure of the value of the trade, it's obvious you saw a very naive prospect, and took advantage of him to line your own pocket.

You won the battle, but you know what they say about the war.

Sorry for the confusion ace. The manufacturer rebates and discounts does NOT effect the gross. So when I said I closed them at full sticker it was minus the rebates. They were looking at a $45,000 vehicle that had $13,000 dollars in rebates so they were getting it for $32,000.

jr,
If you don't give them the rebates, i.e. sell the car at $45,000, do you get paid on the rebates because I do? In other words, if I don't tell them about an available rebate and they pay full price for the car, the rebate amount gets added to the gross.

I'm with Rich. Not only would I have walked I would have told at least 12 other people about my awesome experience.

Quote:

Originally Posted by ccIowa

I'm with Rich. Not only would I have walked I would have told at least 12 other people about my awesome experience.

I think it's real easy to say "I would have walked." But I don't know if it was true.

Every human being on the planet has "over paid" for something (whatever "overpaid" means). You probably have, too. It would be easy for me to say "I would have never done that" but in fact I have.

Why do people do that? Because they want it. They want it now. And who are we to say they're wrong?

Most things bought and sold in the world are done so via negotiating a price. If a customer is willing to pay a price, shouldn't a salesperson be willing to take his money? (unless of course there are other issues such as the individual is not of sound mind).

As I see it, jrboyd called the customer's bluff. Is that wrong?

Quote:

Originally Posted by wesbound

jr,
If you don't give them the rebates, i.e. sell the car at $45,000, do you get paid on the rebates because I do? In other words, if I don't tell them about an available rebate and they pay full price for the car, the rebate amount gets added to the gross.

Something doesn't make sense. Please educate me.

How is a dealer able to divert a factory rebate available to a purchaser of an auto into its own pocket? Please explain the mechanics--AND--is it done with the factory's knowledge? In other words, is the paperwork falsified?

Quote:

Originally Posted by Skip Anderson

I think it's real easy to say "I would have walked." But I don't know if it was true.

Every human being on the planet has "over paid" for something (whatever "overpaid" means). You probably have, too. It would be easy for me to say "I would have never done that" but in fact I have.

Why do people do that? Because they want it. They want it now. And who are we to say they're wrong?

Most things bought and sold in the world are done so via negotiating a price. If a customer is willing to pay a price, shouldn't a salesperson be willing to take his money? (unless of course there are other issues such as the individual is not of sound mind).

As I see it, jrboyd called the customer's bluff. Is that wrong?

Skip,
Far be it for me to question you; you are one of the most brilliant salesman in the world. Maybe even the very best. But, what do you mean that "Most things bought and sold in the world are done so via negotiating price."? Do you negotiate the price of your groceries, a pack of gum, the gas at the pump? I think very few of the things we ever buy do we negotiate the price. Even big ticket items like furniture and appliances, although you can negotiate price, I think most don't. Just houses and cars. Am I wrong?

Still hoping someone will clarify how a car dealer can divert a factory rebate available to a purchaser into his own pocket.

Any answers--or are we going to let that just slide?

The most under-utilized word in the sales vocabulary

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