Negotiation is a crucial aspect of any business deal, and vehicle sales are no exception. Many salespeople believe that negotiation and holding gross profit only come into play during the discussion of price and payment options with a client. However, this is a common misconception. In reality, the ability to establish a transparent, trust-based communication with a customer during the pre-number process can make all the difference in the outcome of the sale and the amount of gross profit earned.
The Pre-number Process refers to every instance of communication that a salesperson has with a customer, from the initial introduction to the point of presenting numbers or payment options. It is called the pre-number process because, once numbers are presented, the conversation becomes solely about the numbers. Therefore, it is essential to create a standardized and consistent, value-building experience during the pre-number process to set yourself up for success and maximize gross profit.
Building value in the vehicle, dealership, and salesperson is crucial to earning more gross profit. One of the most effective techniques to achieve this is to use vehicle documentation to create a transparent and educational shopping experience. Documentation such as the vehicle history report, reconditioning receipts, original MSRP window sticker, and optional equipment helps build trust and confidence with prospective buyers while also focusing them on the value proposition of the vehicle. Additionally, this process sets an expectation of what all dealerships should provide to their potential clients, elevating your dealership and creating doubt in your competition.
It is crucial to evaluate your pre-number process and determine what information you are providing to build value before presenting numbers. Consider what information your customers leave with if the deal does not close that day and how it sets you apart from your competition. Focusing on these areas can help improve both sales and gross profit.
In conclusion, negotiation and holding gross profit are not solely about discussing price and payment options. The pre-number process, which includes every instance of communication with a customer, is a critical aspect of vehicle sales. By using techniques that focus on building value in the vehicle, dealership, and salesperson, such as using vehicle documentation, salespeople can establish trust and confidence with customers, set themselves up for success, and maximize sales opportunities.
