Tag Archive | "competitive pricing"

How to Handle “I can get it cheaper somewhere else”


Have you ever heard this from a potential client: “Okay, well, thanks for the information. I want to shop around and will get back to you if this is really what I want.” Unless you’ve only been in business a day or two, you have.

In most cases what are they really saying? They’re saying, “I want to know if I can get it cheaper somewhere else.” “I want to find if I can get the dealer across town to beat your price.” It’s usually a money issue when those words are spoken. Occasionally, the client will not really be certain that the product meets their needs and be looking for other vehicles, colors, or options along similar lines to what you have available.

Having clients with a desire to shop for a bargain is a given in any business but especially so in the automotive industry. Knowing how to get them to stop shopping and make the decision to own is a skill. It’s a skill you can develop with some thought and a bit of effort in applying the right strategy.

You must understand that it’s pretty normal that we all want that new car smell, the best warranty in the business, the great-looking vehicle, the most economical, environmentally forward car or the status-symbol car of our dreams. But, no one wants to pay too much for it. Before you can use the right words to address this situation, you have to know what you’re up against.

How much do you know about the vehicles, options and special pricing offers being made by your competition? Do you know what your clients are comparing you with? If not, invest some valuable time in research.

Investing a day or two visiting the competition with the eyes of a shopper just might surprise you. You may readily see a weakness in their product or service that you will then use as a strong selling point in your presentations. You may find a weakness in yours that you will need to be prepared to address with those savvy shoppers who come your way. Either way, you must learn information critical to your success.

After doing research, you may learn that the competition truly does offer your product at a lower investment. Or, it may be that they offer a similar vehicle with fewer options, just not options that most people would care about. Or, they may not offer the excellent service that you do. There’s bound to be something you find that’s not as good as what you offer. If you don’t find one of those three things as being different from your offering, you may need to talk with your manager about how the dealership wants to handle the situation.

The next time you hear a client say, “I can get it cheaper somewhere else,” use these words: “That may well be true, Mary. And, after all, in today’s economy we all want the most for our money.” By agreeing with them, they’ll sense that you have their interests at heart and will listen to what you say next, which is: “A truth that I have learned over the years is that the cheapest price is not always what we really want. Most people look for three things when making an investment: the finest quality, the best service, and the lowest price. I have never yet found a company that could provide the finest quality and the best service for the lowest price. I’m curious, Mary, for your long-term happiness with your new vehicle, which of the three would you be most willing to give up? Quality? Service? Or, low price?”

You’ll find that few clients want to give up on quality. Oh, there will be a few who will choose to downscale either in the size of the vehicle or in the number of options they want. Not many like the idea of inferior service. So, that leaves the money as being the main issue in 90 percent of the cases. What you’ve just done with the words I’ve given you here is to help your potential new car buyer rationalize and justify the amount of money that was the issue just a moment ago. They have to admit that in order to get quality and service, there is a cost.

Most people, when they come to this conclusion, realize the benefit of having the buying decision made. They rationalize spending the money in exchange for that great service and quality product – the things that really make the difference in a vehicle purchase. Then, they can move on to getting something else done that’s important in their lives, not investing any more time in researching their vehicle purchase and being happy to have made their final decision.
Then, it’s your job to keep them happy enough with your follow up service that when it’s time to replace that vehicle or purchase another, they’ll come to you again.

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