Tag Archives: sales

1 out of 3 ain’t bad, apparently

To find a used car to buy before the Internet world we live in now, you would read the Trading Post or newspaper Classifieds and/or visit a good strip of multiple dealers close by so you didn’t have to run around too far.

Today it is so much easier to see all the cars for sale online in the one place but that in itself can make it somewhat harder as you second guess yourself and try to do everything to ensure you are getting a fair price.

I’ve just been through the car buying process again and can confirm that buying a car can still be hard work and stressful, even with all the information available today.

This was the process I recently went through.

The first step was to narrow down a few makes and models. I did that by searching through carsales, saving the cars in the member area, reviewing, culling and finally coming up with a model choice.

This part is definitely easier with lots of photos, information and great tools to help the search for the right car.

The second step was to visit a dealer to test drive the model I selected. As soon as got to the dealership another model jumped out as “car of interest” so I test drove both models. The new choice of model got the nod.

The third step was to get back onto carsales to find the right deal. I narrowed it down to three cars so I submitted enquiries on two of them as the third one was at the dealer I visited the previous weekend. Both dealers were prompt in contacting me which was great and I indicated to both that I would be visiting their dealership the coming Saturday.

The third step was to visit the dealer to check the cars out. I went out to the first dealer and headed into the new car sales as the car I had enquired on was listed on carsales as a new car demonstrator vehicle with a few thousand kms.

When I asked for the sales person I spoke to on the phone I was directed to the used car section. This was strange. Even stranger was the actual kms on the car – 27. Not 2,700, not 27,000, just 27. This was a new car. Being sold in the used car section. WTBH (What The Bloody Hell).

I asked the sales person the obvious question – Why? “The new car department is too busy so we are helping them out”, was the reply. It didn’t gel. I checked over the exterior of the car closely and found an obscure little divot that looked very much like a hail divot. This has to be why it is in the used car yard.

I asked the sales person if this car was a hail damaged car. “No, we don’t have hail damaged cars” was the response. I showed him the divot. He looked surprised, reiterated his answer, I questioned again so he said he’d check and waddled off to the office.

He came back five minutes later and said “Yeah, well it is a hail damage car. That’s why the price is so great. There’s only the one divot, it’s a new car in every aspect with the 5 year new car warranty, capped price services and all that”. Yes there’s only one divot, that we can see now. How many were fixed?

Ok, so 3 questions and 1 straight answer. Further to that, the car was advertised online as a new car demonstrator vehicle with a few thousand kms on the clock with no mention of it being a new car with hail damage. This is clearly misleading.

I ask the question now – which approach is better? To mislead and lie per my experience just described or to have advertised the car as “A great deal to be had, brand new car with minor hail damage, 5 year new car warranty, capped servicing, don’t miss out!”.

I don’t quite get it out but then again as I have had pointed out to me many times before, I’ve never actually sold a car (my previous cars sold themselves)

3 Keys to Converting Online Leads

carsales has successfully operated a business model centred around the value it delivers to its clients.

The billing mechanism is online leads delivered but the model is about the sale not the lead. This is applicable to all businesses using online as a sales mechanism, not just the auto industry.

It’s interesting in our business as some clients will convert 1 in 4 online leads to a sale and another client in the same city with a similar inventory mix will convert 1 in 8 leads. Why?
The answer comes back to the way each and every lead is treated where:

a) Those who sell 1 in 4 leads want more and more leads (because they know they are sales opportunities) to the point where they will call our support centre to see what is wrong when leads drop off because they know that it means their selling will drop off.

b) Those who sell 1 in 8 leads complain about the quality of leads.

Do the clients receive the same quality of leads? Yes, leads are not vetted to send the good ones to certain clients!

The keys to converting online leads are available to all businesses:

1 Treat each and every lead as a hot prospect – the person is sending a lead or calling because they want to buy from you or use your service. In our business, more often than not a sale is made on another car in the dealer’s inventory than the one enquired on.

2 Speed of response must be immediate and is paramount – first of all a template email response and then human follow up. Consumers regularly tell us they end up buying from the dealer who contacted them first or more to the point, some dealers just don’t respond or fail to follow point 1.

3 Track and measure all leads from all online sources in the one lead management system – this is especially so if you have sales people you are relying on to sell your products/services and look after your brand. Emails can be deleted and phone calls “didn’t come in” but not so in a lead management system where email leads are logged into the system and can’t be deleted. Calls are also logged and recorded.

When you think of it, it is kind of funny how some say the Internet (or carsales in the auto space) is making it hard to compete and making it too expensive.

We have far too many clients who follow these 3 steps and are successful online for it to be true.

Sometimes ROI attribution and accountability can be a scary proposition, especially in a changing world.

Maybe go back to the “good old days” and bring back the newspaper “rivers of gold”, that will fix it.

Repeat Customer to Negative Reviewer

I’m not a sales guru by any stretch but this is about a sales technique that I wouldn’t recommend.

We all value reviews on services and products from our friends, the general public and experts, especially in this connected world. I’ve never been one to provide negative reviews but this is a quick story of how I went from a potential repeat customer to a negative reviewer very quickly.

I’m sure a few have been in similar situations and hopefully someone can learn from it. No one likes to be treated like a fool especially when you are the one holding the cheque.
I was after some shutters on a number of windows at home. I called a company I had used many years earlier at my previous house so I was a repeat customer. Their salesperson came out to do his measurements then worked out some pricing before we sat down to look at the numbers.

The very first thing he did was write down a number on a piece of paper, told me this is the retail price then crossed it out and wrote another number down because “he wasn’t going to stuff me around”. Really? I pushed him a little and very quickly we were at about 44% of the retail price.
The caveat he had on the price was that he “believed” scaffolding would be required to complete the job. The next time I spoke to the salesperson was to tell me the cost of the scaffolding required which added up to a 40% increase on the price he quoted – so we were practically back to the retail price remarkably enough!

“But you are still getting a 44% discount on the shutters, it is the size of the house that requires this level of scaffolding”, he told me. Really? Does this sales tactic really work on anyone?
I wasn’t just not going to use their service, I was pissed and I called/emailed the company to get a comment back. Nothing was forthcoming so I wrote a review on productreview.com.au and gave them 1 star out of 5 (the minimum). I must admit it felt good. I showed them!

It’s amazing how quick you can turn someone from a potential repeat customer to a negative reviewer so quickly and in today’s online world, why would you take the risk?

Footnote: I got a great job on the shutters for less than the 44% off the retail price I was initially quoted with no scaffolding required.