Ray Paulsen

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Enough Study
You need a Brain Break

A recent study found the average American walks about 900 miles per year.

Another study found Americans drink, on average, 22 gallons of beer a year.

That means, on average, Americans get about 41 miles to the gallon.

Kind of makes you proud to be an American.

How dealers Negotiate   

Here is just one example how the negotiations may unfold, the technique has been around forever
You found the car you want with a sticker price $ 18.995 the salesman invites you to his desk, you're thinking $18.000 will be my final offer but I will start at $17.000 - the salesman most likely like give you a dozen reasons why this amount will be unacceptable and want you to start with a higher offer, but you're what dealers call a squirrel " so let's assume in this example the offer starts at $17.000 "

The salesman writes on his worksheet $17.000 + taxes - dmv - dealer fees - etc etc for you to initial and asks for a credit card to show good faith, presents offer to the manager on duty whom send offer back at $18.495, at this moment in the process reactions from the buyer can branch out in many directions ... its the moment where the pro salesman with years of experience will have answers and suggestions to all objections

Here are some sample reactions from the buyer when the salesman presents the $500. discount on the worksheet

1)... The buyer sits and stares at it for the longest time without a word being spoken...this little game is called whom speaks first lose

2)... The buyer angrily stands up want to leave, the pro salesman just sits there watching the buyer release emotions in complete control knowing you are going nowhere ( why ) where is your credit card ?

3)...The buyer will state OBJECTIONS...I cant afford it - can buy same elsewhere for less - will think about it - i will give you another $$$ and thats it - got to check with my bank - its over my budget - with Insurance added i can't - will let you know tomorrow - let me sleep on it - got another car to look at - i am running late, got to go, I could add another 50 objections , the above mentioned are the most common, lets look at comeback technique's and answers to objections by the salesman

Comeback Technique's Handling Objections " belittle - the buyer "

Your telling me you cant afford an extra 50 cents a day 
Its to much car for you - lets look at something less expensive 
You need to discuss this deal with ??? - and you will be the principal driver 
I know a good deal when i see it - you obviously don't
If you had done your homework - you would not be thinking about a few extra dollars for this car
This unit will be sold today - you snozze you loose
There is another appointment on this car - its now or never
Just arrived - your lucky being here at the right time
We both knew offer was to low - lets try $$$
We are $1500. apart - lets split the difference and see if Mgr accepts
You been here for 2 hours give me something to go back with - how about $$$

Sales Manager with Salesman Behind Closed Doors

If the negotiations are conducted without a deposit in hand by dealer and the manager is signing back worksheet to get initialed..." dont let customer walk "...simple answer is, we got a skinny deal now at $17.000 , but lets see how much more profit thats left on the table...
customer already has a deal but is un-aware and being asked for $18.495 If customer gets up and starts walking, he/she has got a deal... but most buyers don't test the dealership.

The pro salesman will now try on the customer for size using some of the technique's described above, and lets say buyer ok's another $ 500.
Sales Mgr at this point except knowing its total gravy being added, or ask the sales person if there is more money left on the table, a strong closer may wants to be send back asking for $ 300. more, that spells another $90 in commission at 30%

The smooth top gun salesman approches you excited and offer his outstretched hand to shake it and with a big smile,,,says,,, that was tough I really had to fight and beg on your behalf and for just another $ 300 we got a deal.

Salesman keeps his hand outstretched - you would think most people being to savvy to fall for tactics like that but it works more often than not - at this point being relived the buyer thanks his new found friend the salesman for his help.

The above is only an example that can happen in hundred of different ways - The dealer will test you - you test the dealer by walking

The Closer

When a buyer stays firm or want to leave the closer may suddenly appear, could be the sales manager or someone hired with excellent people skills, this strategy works quite well, a fresh face to wear you down.

One of the first key questions from an ace closer will be " if we can - will you buy right now, the closer then starts the process all over again while your original sales person never utters a word.

The closer may suddenly excuse himself to work on the numbers,,, but the main reason is likely to bide time " It's a bit of theatre act " to wear you out, and your now left with the original salesman playing the game telling you if this deal can be done it will be one of best deal he has ever seen.

4 Square Worksheet  

When you start negotiating with salesperson and if you note his worksheet has got 4 little squares marked as follows," Your Trade Value" The Purchase Price" Down Payment" and "Monthly Payments"

Some dealers still train their sales staff using this aging method to close deals for high profits, Imagine yourself sitting across a table watching a magician doing tricks in front of your very eyes emptying your pockets without you having a clue, thats how this technique works. It's long and detailed to explain, simply, don't play the game.

Standard Worksheet

This worksheet can get real messy going back and forth, you initial a counter offer with conditions, the manager will write in big letters, will even turn over the sheet to make a big point, and will write other things in order to make it as confusing and hard to deal with as possible in attempts to wear you down and make you sign.

Old funny memory - Worked at a dealership once back in the early 80's where the contest for the day was a free tank of gas to the salesperson whom could bring a sold unit worksheet with the most covered space of ink " why " because it showed the salesperson really worked over the consumer to get the sale. The funny part is here we are today and this same strategy still sells cars.