Monday, July 16, 2012

ADD ON’S ADD UP


This weekend I had a great experience that I haven’t had in over 10 years, I BOUGHT A NEW CAR! No I didn’t get a super luxury car or a sports car, I didn’t get a classic muscle car or and antique. I bought a basic car just for running around town training or selling.

Before I went out driving from dealer to dealer I did what so many of our customers do today, I let my fingers do the walking over the keyboard of my computer. Because I haven’t been in the car market for so long I had no idea what I was going to need to spend to get a car with A/C and automatic transmission that gets GREAT gas mileage.

I started with all the manufacturers that I perceived to be inexpensive. I went from website to website looking at the least expensive models they had to offer. The assortment was astonishing, I saw models that I had never heard of before or have ever seen.

As you can guess the price on almost every low end vehicle started within a few hundred dollars of each other. After looking at several models I had narrowed it down to 3 that I wanted to look at and drive. Off my wife and I went to “LOOK” at cars.

Our first stop was the least expensive of all the cars. It didn’t take long for a salesperson to walk up and introduce herself to me. I told her what I was looking for and she looked at me like I was crazy. She very nicely said, “The MSRP of the model does start at the price you saw online, however we NEVER get cars like that in. All our cars have add on’s either from the factory or one’s we put on after they are delivered. Basically you can expect $1700 to $3000 added to the price you saw online.”

I stood there speechless. (Something that doesn’t happen to me very often) The add on’s as she was explaining were 10% to 25% of the price of the cars. I recognized very quickly that my budget had just been blown out of the water.

I asked about what these add on’s were, and she was very happy to show me a few window stickers and what was on them. I can honestly tell you that not one of the items listed made a hill of beans difference about how the car drove, handled or the mileage it got. Everything was protective this and coating that, a light here and a switch there. Nothing that made any difference.

After hearing the same thing from the next 2 dealers I went to I started thinking how this could be an advantage to me. The only thing I could come up with is it gives me a great posting here on the Training Buffet, Help Yourself.

What I noticed most about all these add on’s wasn’t what they were as much as how the sales people just acted like it was the most normal thing in the world to add 25% to the price of a car and offered no apology for doing it. I thought about sales reps that I have worked with over the years and how many apologize time and time again for a 5% shipping charge.

As I looked at other models of cars I saw that this add on practice was done to EVERY car! From the basic starter car to the top of the line models, thousands of dollars were added to the MSRP sticker price. (In most cases the dealer had an additional sticker they applied to the window showing the add on’s added after delivery)

The end of the story is I now have a car with power door locks, power windows, AM/FM/CD with USB and AUX inputs, and Bluetooth for my phone, along with a few other un-needed options.

Most of you reading this post have add on’s that you can offer your customers. I am betting that most of you are a little shy about doing it thinking the customer will not want the add on’s. Do what car dealers do, bundle them with the product from the start of the sale. Don’t make it optional, tell the customer about the add on’s up front and don’t apologize for them. Sure some customers will not want them and unlike the car dealers you can always remove them from the package, but if you ask you will be amazed how many times your customers will say YES!

Did I mention I also have carpeted color coordinated floor mats for the car?

Lorin

No comments:

Post a Comment