What REALLY happens when a car salesperson goes to ‘talk to the manager’?

use yeah it's your cup so I use it I like that it's how you pay a Mars to your father yeah I get your coffee mug all inside then I appreciate that are you doing today I am wonderfully well raring to go I feel I feel like we have left our audience down we have not communicated with them it seems like in days weeks months perhaps even in the years every years could be years all right today a title of today's video yes what the heck happens when the salesman says let me go talk to my manager or I need to go ask the manager I got to go to the man's office and I think you know all of us that are contemplating buying a car in the past we've experienced that when we go into the dealership and nowadays when we're doing everything virtually you know we still get B well let me go talk to my manager about that yes you were that manager for decades what I was I was the man behind the curtain that is correct yes so what goes on okay so here's the rationale behind why a salesperson has to talk to his manager trust the manager does not trust the salesperson - I don't know work as hard as possible to maximize the amount of profit in a deal the managers feel as if the salesperson will cut to the chase and the bottom line number I don't know why after saying hi my name is okay so sales managers are tasked by ownerships to try and show gross profit their tasks to try and maximize the profit in any given deal okay and and so most sales managers operate out of fear and the fear is that if they don't control everything well then what the heck you know the profits are just gonna go way down okay and and and that really is a misplaced fear most customers would prefer to deal directly with a decision-maker yeah so that when a customer says can you this X amount of dollars less the salesperson is actually the decision-maker and can say yes or no now that sales managers new fear is is that the owner will realize what the hell do I need the sales manager for if the salesperson can make that decision did you ever feel that way when you were and I did not okay I used to empower my salespeople I wanted my salespeople to be able to be the ones to say yes or no no but I mean did you ever feel like that you were disposable like you made yourself disposable no I always thought that I brought other things to the table rather than just maximizing profits in a deal yeah I I thought I brought things to the table about how to have a better take care of our customers how to find better ways to grow our business yeah as opposed to spending my time babysitting salespeople and working all the deals I thought it might be more beneficial if I can come up with ways to I don't wanna figure out how to bring us more customers I understand so so that was my mindset but you know most sales managers that's not their mindset their mindset is that that they need to be in control late they're taught early on you're torna early on as a salesperson whoever has control wins okay and so core salespeople don't ever want to give up control to the customer sales managers don't ever want to give up control to the salespeople finance managers don't ever want to give up control to the sales managers so it's just it's just this ludicrous stream of people that don't want to give up control when in reality we all know from having done it as long as we have what the bottom-line number really is so rather rather than make it a marathon and make it challenging for the customer empower the salespeople to be able to make the decision as to what is acceptable worse than acceptable so I understand that's the why so that's why now you want to know what actually goes on like spill the bean okay spill the beans so what goes on for the sales manager it's like being in a chess match okay when you're dealing with the sales person who is dealing with the customer the sales manager is always trying to be two or three moves ahead of both the salesman and the customer so when you're negotiating a payment say or a price whatever it might be let's say let's say you've you've offered the vehicle to the customer for twenty nine seven and fifty and the customer says I want to be at 29,000 and the salesperson comes in and says he wants to be a twenty-nine fast the sales manager knows that the customer doesn't would really really like to be at 29,000 but doesn't really expect to get the 29,000 and he knows there's a higher number that the sales that the customers willing to spend so the sales manager might say something like go back at twenty twenty 75295 whatever you know yeah any numbers and then when when the customer says why I can't do 29 five but I could do 29 to fifty sales manager knew that all along yeah yeah and says and when your customer says I'll do 29 through 50 pull the trigger make the deal so in what goes on with the sales managers he's trying to be two or three steps ahead as to what the thinking is going to be to get a customer to finally say yes but the other things that go on is the sales manager is gonna quiz the salesman is what what's your clients mood like how much do you think there is for movement are they're going to move are they entrenched in their positions is there a reason they're entrenched in their position yeah are they're ready to move forward have they committed to actually doing the transaction today because as we've discussed before the three most important letters the salesman and a sales managers in Oh w I'm going to take to make it happen now so are all those things in place and if they and if you have the commitment to move forward you know the sales manager will will come up with a plan of attack to hopefully get there so it's really like the sales manager is kind of the immovable object in this whole process and is also the person that if you're the customer is really impossible to actually get access to as well so that you end up having to negotiate through this middleman this is that kind of the whole danger yeah until until of course the salesman comes back and says I can't get the customer to move to where we need him to move to in order to be able to make a deal at which point the salesman sales manager has to get up off his lazy ass know well and actually shake the customers hand try and be as charming as he possibly can and with the customer to where they need to be moved to I know that when I used to go out and talk to customers I used to tell them point blank the reason I'm here now is because so-and-so just couldn't get you off the ledge we understand you're you're like on only on the edge of the cliff and you're afraid to make that leap I really did not like this analogy and my job my job is the salesman you can jump off the cliff but where you go what does that just listen my job as a sales manager is to is to persuade you it's okay to make that step okay that that as you're falling I'm gonna reach into your pocket I'm gonna take you out the requisite amount of cash that I need in order to make the deal happen and I'm gonna grab you and save you before you hit the ground but you're gonna get the money oh absolutely are you ready to get started and people would just look at me like I was nuts it is nuts but it worked you know so really they're on the precipice of making a decision and my job is that here's my theory the customer comes in there because they they want to do yeah and and and my job has always been to help convince a customer to do what it is that they wanted to do just sometimes maybe sooner than they wanted to do it but ultimately they really wanted to do it and is there any real value in spending four hours at the dealership you're at now and then another four hours is another dealership in eight hours at another dealership and so here here's here's a truth that nobody's going to tell you about and and and some of our viewers might agree and they might not but when a customer says to a salesman or a sales manager I want your best price what they're really saying to you is I would like to make sure that I am NOT overpaying okay that you are treating me fairly so what they're saying is can you share information with me that will make me comfortable knowing that I am NOT being taken advantage of yeah really asking for your best price they're asking for the price that's going to make them feel the most comfortable so they can move forward with the transaction something that's fair okay yeah there's nothing wrong with fair and I think this whole mystique behind the manager in the office and not being able to access them and having to work through the salesperson kind of perpetuates this a its antiquated and it's against everything that you talked about at the beginning which is why can't we just give them the bottom-line number up front which we've you have to talk about in myriad videos the way that pricing for cars is done is yes and really should be revised to bring it you know up to date with where we are it also perpetuates this kind of gamesmanship of making a car deal where you were you actually you know the dealer is not making it any easier it it almost builds this adversarial us-versus-them type approach where the salesperson is caught in the middle and I know you you've been in the salesperson role and you've been in the sales manager role and it's not pleasant no I I've been I've been the hired assassin I mean at one store that I worked and I was I was a closer there was Sales Manager there were closers and there were salespeople I mean you know there were multiple layers and I was I was the assassin I was I was the closer I was the one that had to go in and and convince the customer to take the deal yeah and and truth is that I've always preached that we should make it more collaborative than adversarial and the older I've gotten and the longer I was in the business the less I was enthralled with the idea of having to take hours upon hours upon hours yes let me get on oh I'd wanted to you know I don't need the aggravation if we're going to end up at X what if we're going up in X for hours for them or why not just end up in X I don't know two minutes into the goddamn transaction yeah I mean I I like to have those four hours of my life back and I'm sure the customer would like not to have to spend those four hours the closer you got to retirement did you get more open to doing that to just be like oh absolutely absolutely you know and I learned a long time ago that you might as well just do what you're ultimately going to do up front rather than take all that time to get to ultimately you know if you knowing your mind if you know in your heart of hearts that ultimately you're going to get the $29,000 just go there let it go there you know why might put everybody through the aggravation that's what that's the reason that people hate buying a car because we in the industry make it difficult for them now we now being on the outside helping customers were they were ultimately the customer for our clients and we know how difficult it is and we know how frustrating and aggravating it is and and everybody's learning that it really doesn't need to be that way it's just dealerships choose who make it that way well and I you've got to imagine you know they preserve some profit that way I don't wanna say they take advantage of people but some people don't get to that bottom my number because they don't feel comfortable enough negotiating and Superman dealership perspective I get it they're saying to themselves sure the process stinks but we still make more money this way yeah well that's because there's nothing immoral about a profit okay and a profit is what allows the dealership to stay in business nobody's building these facilities with the hopes of why I don't know losing enough money to have to close them down I mean yeah they're being built because their profit driven retail outlets but you can you can establish the profits that you need and minimize the pain in getting to those profits with a different businessman and that's what you've got to think this whole what goes on in the manager's office question over this video is obsolete 5:10 in exactly five but maybe 10 years from now this video should be totally pointless because by then we shouldn't have to go through the manager's office you know you've got to imagine that if dealerships do you want to continue to be profitable into the future they need to make it a less painful process which could take us out of business because what do we do we do the pain for our customers we're the ones beating our heads up against the wall to make deals you know as the advocate for our clients but you've got to imagine that eventually there'll be this this tipping point and I think we see it with with our business with carvanha with the car maxes of the world moving away from this what's going on in the manager's office like why can't I talk to Ray that's like no you can't and you can get an answer and here's the price well and oftentimes the other thing that's going on in the manifest offices we're trying to determine what it is that we're going to eat you for lunch or dinner or our afternoon snack is it time for a fresh cup of coffee from Dunkin things like there are important things going on in the manager's office that have absolutely nothing to do with court deals I'm sure like during March Madness the manager's office must be the most fun place to be I managed to everyone looking at their brackets and the office pool and things like that there's no card deals being made I take it there's cordials being me but there's there's you know thankfully managers have two monitors so one monitors and I'll give you and one monitor is I don't know working a cornea hey well if you have questions if you want to know more the ins and outs of the business leave a comment down below I'm more than happy to talk to talk to pops about it and get his take on it this one's always been really interesting to me I even remember sometimes when I come visit you you know bring your kid to work type of day situation and I couldn't believe how crazy busy it was in your office 24/7 you would have three people in there talking you all at the same time I had no clue hey I actually got any work done which also kind of again perpetuates have done this setup is because you have all your sales people that then have to be routed through one decision maker it's really dumb that's why it takes four hours gap yeah if you get more questions about the stupidity of the car business and also maybe some of the innovations leave them down below we'll address them we'll talk about are you ready for our outro hitting with it okay we're done folks I don't enjoy it yes we can make a t-shirt when you're like with your face yeah yeah I see we'd have to give those away for free I'd see ya

Channel: Your Auto Advocate

Views: 501,954

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Id: 9nloIFvbeDE

Length: 16min 59sec (1019 seconds)

Published: Sun May 17 2020