How to Sell Anything to Anybody Ch 17

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Questions and Answers

What often causes salesmen to lose sales?

Moving too slowly without building rapport

Offering discounts too early in the conversation

Focusing on a single customer rather than multiple leads

Not clearly defining their own wants before selling (correct)

When should a salesman be ready to close a sale?

After establishing a price point the customer is comfortable with

Once they have a clear understanding of both their own wants and the customer's needs (correct)

Before determining the customer's level of interest

After offering the customer multiple products to choose from

How does the salesman perceive the customer when they close the door?

As a patient who is hesitant about their decision

As a prospect that needs convincing through discounts

As a competitor whose choice must be swayed

As someone who is ready and willing to buy (correct)

What does the salesman assume when discussing the color of a product?

The customer is committed to making a purchase Signup and view all the answers

What strategy is suggested when a customer seems hesitant?

Engage the customer with casual conversation or hospitality Signup and view all the answers

What is the purpose of asking for a deposit when selling a car?

To secure the sale quickly Signup and view all the answers

How does the salesperson approach potential objections from the customer when discussing payment?

By encouraging the customer to explain their financial limitations Signup and view all the answers

What strategy does the salesperson use to ensure customers perceive value in the car purchase?

Being knowledgeable about different cars and their options Signup and view all the answers

What psychological tactic does the salesperson employ by asking for a specific deposit amount?

Creating urgency in the customer Signup and view all the answers

Why does the salesperson prefer checks over cash for deposits?

Checks can be canceled if the decision changes Signup and view all the answers

What fundamental assumption does the salesperson make about the customer when they hand over a check?

The customer has sufficient funds for the purchase Signup and view all the answers

In terms of competition, what does the salesperson believe gives them an advantage in selling cars?

Understanding both cars and customer needs thoroughly Signup and view all the answers

What is the main advantage of spot delivering the car to the customer?

It eliminates the customer’s hesitation and commitment issues. Signup and view all the answers

What does the author believe is the least important factor when a customer decides to buy a new car?

The color of the car. Signup and view all the answers

Which strategy is employed to prevent the customer from looking elsewhere?

Spot delivering a car that isn't the exact choice. Signup and view all the answers

How does the author react to a customer’s hesitation regarding payment?

By assuring the customer that their word is good enough. Signup and view all the answers

What is a potential risk of special ordering a car for the customer?

The customer might change their mind and cancel the order. Signup and view all the answers

What does the author suggest about colors available for cars?

None of the colors Chevrolet offers are bad colors. Signup and view all the answers

Which of the following is NOT mentioned as a reason for customers to back out of a car order?

Desiring a different model of car. Signup and view all the answers

Why does the author emphasize the importance of having cars in stock?

Having cars ready can prevent customer indecision. Signup and view all the answers

What is the author’s approach when a customer's desired car is not available?

Suggest a similar car that is in stock. Signup and view all the answers

What primary factor is emphasized as crucial for maintaining a sale after the initial transaction?

Customer trust Signup and view all the answers

What strategy does Joe Girard use to prevent customers from looking at competitor prices?

Spot delivery of the car Signup and view all the answers

Why does Joe Girard believe he should not sell cars too cheaply?

It reduces the perceived value of the cars he sells. Signup and view all the answers

What risk does Joe Girard associate with accepting only a small deposit from customers?

It leaves the sale vulnerable to competitors undercutting his price. Signup and view all the answers

What does Joe Girard believe customers underestimate in the car buying process?

The complexity of determining dealer costs Signup and view all the answers

How does Joe Girard view the need for customers to brag about purchase prices?

It shows they got a good deal. Signup and view all the answers

What does Joe Girard mean by saying ‘trusting me after the sale is what counts’?

Trust influences future sales and customer referrals. Signup and view all the answers

What does spot delivery imply about customer ownership perception?

The customer is likely to believe they have fully bought the car. Signup and view all the answers

When does Joe Girard feel a customer is truly sold on a deal?

Once they have driven the car home. Signup and view all the answers

Study Notes

Sales Techniques

Moving Past Hesitation: Salespeople often lose sales by pushing too hard too soon. Instead, focus on understanding the customer's needs before closing. Imagine the customer's face as a bag of groceries to motivate personal drive and commitment to the sale.

Identifying Customer Wants

Defining Salesperson's Want: Knowing what you want (e.g., surpassing yesterday's sales, beating competitor's records, reaching top sales) motivates selling efforts and helps in every sales interaction. This knowledge is crucial for understanding customers and their potential wants.

The Closing Process - Key Steps

Intelligence Gathering: Before closing a sale, thoroughly understand both what the customer wants and what you want out of the deal. This is akin to a surgeon's assessment before operating on a patient.
Color as a Cues: Asking about a car's color is a strong indicator of a customer's readiness to buy. If a customer mentions a color it often indicates the purchase is past the point of no return.
Proactive Closing: Rather than passively asking for a deposit or order, ask for a smaller amount (e.g., $100) and be prepared to adjust based on the customer's response. This more assertive approach avoids putting the customer on the defensive.
Handling Partial Deposits: Be flexible with deposit amounts. If a customer only has a fraction of the amount, accept it, but ensure they leave ample money in case of financing problems or unexpected changes.

Spot Delivery

Risky but Effective: Offering spot delivery (giving the customer the car even if the final paperwork isn't complete) to create a sense of ownership and disincentivize further shoping.
Creating a sense of obligation: The customer's possession of the car creates a moral obligation to make the deal happen. A signed documentation outlines their responsibility to return the vehicle if the deal does not go through.
Insurance and Spot Delivery: Use similar strategies in other industries; for example, an insurance agent giving coverage with a temporary binder allows customers to see and appreciate insurance benefits immediately while details are finalized.
Understanding Customer's Priorities: The author emphasizes the importance of assessing customer needs instead of focusing on extra optional elements. The actual car (its make, style, and features) and its cost are primary factors that drive potential buyers. Color is often a secondary concern in comparison to price.

Price Negotiations and Sales Strategies

Competition and Fairness: Acknowledge direct competition and the importance of offering fair prices and deals, avoiding unethical tactics. It is not uncommon to lose some sales but maintaining customer trust and positive feedback can increase overall sales.
Flexibility in Pricing: Be prepared to adjust prices by offering lower pricing in consideration to comparable options (either lower car costs or less commission). Focus, in part, on the significant difference in options and features, so a negotiation regarding features may reduce the overall price.
Price Comparison Clarity: Be transparent about price comparisons to avoid confusion and maintain trust. Explain to the customer the reasons behind pricing discrepancies.
Customer Trust Enhancement: Establish trust and rapport through clear communication about the actual sale and price. Providing clear pricing on the monthly payments and total costs of the car are key elements to maintaining customer trust.

Final Considerations

Avoid Unnecessary Pressure: Do not force a sale. Give customers the leeway and respect to choose.
Trust and Integrity: Maintaining trust and honest dealings are essential to long-term sales success; a reputable dealer earns repeat business and positive testimonials.

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Description

This quiz explores effective sales techniques, focusing on understanding customer needs and the importance of identifying both salesperson and customer wants. It also covers key steps in the closing process, including intelligence gathering and using cues like color to assess readiness to buy. Test your knowledge on successful sales strategies and enhance your selling skills!