Showing posts with label fico. Show all posts
Showing posts with label fico. Show all posts

Friday, May 3, 2013

Your SEO works. Now what?

You have paid a service or used staff to finally get your SEO cooking. Your ads, offers and/or business listing is moving up in local search requests. Phone calls and in-store traffic is increasing monthly. Now what?

I do quite a bit of research and subscribe to domestic and international newsletters on buyers shopping habits, internet and mobile usage and a host of other advertising and marketing topics.

But, today there were two stats that really caught my attention. The first, there are 7 billion people on earth and there are 6 billion mobile users. The second, 75% of consumers access smartphones in-store: Forrester Research.

If you are a business owner with a retail location showrooming is getting worse and costing you sales you don't even know you missed. Now that's scary. What you don't know won't hurt you but, in this scenario what you don't know will kill your business. By the way if you don't know what showrooming is stop now and find out before you go out of business.

As a marketer how do you best use these stats to help your clients? If you have no mobile or digital solution for your clients you better get several before they leave you, asap.

Businesses offering free wifi to keep shoppers in-store longer and/or as a customer service feature your competition thanks you. If you have no real value for those shoppers while inside your store that "just looking" means found it down the street and thank you for your help.

Your SEO works. Now what?

Tuesday, April 16, 2013

TO (Turn Over) - Why Does It Work?

Auto dealers continue to use this tried and tested sales technique, the turn over. Here's how it works. Once the salesperson has helped you decide on a car you begin to negotiate the purchase price.
 
The salesperson will spec out (list the equipment) the car on a work sheet. Also included on the worksheet is the MSRP (manufactures suggested retail price) and the list price (price that includes any added items). Next the salesperson spins the worksheet around, explains the list of items and highlights the selling price for the vehicle and asks for your okay or acceptance, a signature.

There is a moment of silence. The salesperson waits eagerly for your reply to the sales offer. After you regain your composure from the shock of the total selling price you make your counter offer. At this point the salesperson explains that he/she cannot make the decision to accept your offer. It must be taken to management  and if you'll just okay the price he/she  will take it to management for acceptance. Dealer management does not  let the salesperson know how much profit is acceptable per sale on any vehicle. Some salespersons may go to these extremes to test your seriousness prior to going to management. They are, get your credit card for a small deposit, get a check or get a cash deposit.

Once you meet the minimum test for how serious a buyer you are the salesperson will then take your offer to management for approval. Rarely is your first offer accepted. The salesperson may go back and forth with your counter offers until you are stretched to the limit and ready to walk out.

Before the dealer will let you walk the sales manager will come over to use his/her salesmanship to close the sale, the TO - turn over to management. This sales technique works because the sales manager is an expert at closing and buyers are more responsive to authority. The sales manager can further reduce the price if needed, persuade you to buy a more affordable vehicle or offer you a special price on a "Managers Special."

If the sales manager can't get you to buy you may be turned over to the general manager before you leave the dealership. He can offer even more price reductions. Auto dealers have you talk to managers because the odds of you returning to buy are not in their favor.

Questions to ask the salesperson: Will you have to go back and forth to management for approval? How can I shorten this process? You have sold this type car before, what's the lowest price that will be accepted? May I speak to the sales manager? Will I get the best price from your web site?

Wednesday, March 27, 2013

Caution: Inclement Weather Look Closer

It was a cold rainy Thursday and a friend asked that I accompany her on an appointment to test drive a Nissan Murano.

We arrived at the dealership and a 2012 Murano was parked right where we could not miss it with a huge sign across the front windshield displaying the model, year and discounted price. It is a 2012.

The salesperson came out, a few pleasantries exchanged and we took a walk around the car giving the exterior a good once over. My friend got in the passenger seat, because salesperson must first drive car off the lot, and I sat in the backseat. Off we went on the appointed test drive route.

At the designated safe spot for a driver change, my friend took the wheel. She and the salesman discussed features exchanged a few questions and answers and back to the dealership we went for the heavy lifting - negotiations.

Since my friend had done her homework, got pre-approved for financing and knew her firm buy figure, the process didn't take but one back and forth and one manager visit to say welcome.

After about an hour off she went to the F & I and the Murano to prep for delivery. Contracts were reviewed, service contracts presented and declined, protection package presented and declined, credit life presented and declined, etc. You get the picture. Buyers order and contact signed and another happy Murano owner walks out the door with the delivery person.

Now, the delivery person took her out to the car for features and equipment familiarization and another walk around the car.

It stopped raining and I came out to take a better look at the exterior and low and behold on the hood were several spots that at first glance looked like just a few rain spots. Wrong. Ran my finger over each one a found deep service scars. At about this time the general sales manager came out to thank her for the business and asked if all went well.

I showed him the several blemishes he rubbed them agreed to have them removed and had salesperson get a We Owe form. This form is used to schedule appointment for car to be brought back buffed and whatever else is needed to remove the imperfections.

This could have been prevented if we had not been distracted by the cold and rain. This could have happened if it were night time. Caution: in inclement weather before you sign the contract have the car cleaned, brought inside with good lighting and you conduct a thorough walk around paying extra attention to painted surfaces and wheels. If it's dark have the car taken inside for a good look.

My friend brought the car back as scheduled given a loaner and asked to come back in a few hours. A few hours later the dealer called and said the car would have to go to a paint specialist. She loss that day, the weekend and Monday of the following week.

It's Tuesday around 6:15pm and she's waiting for the dealer to bring her new Murano over as he said in an earlier call today. Caution: in inclement weather look closer before you buy.






Sunday, March 3, 2013

The Test Drive - Where You Take Control

Before you make your next new or used car purchase take it out for the all important road test or test drive. During this time you will either love or hate that new ride. The test drive is the most important part of the buying process. The time when you take control of the drive.

Have the salesperson demonstrate the location and operation of all instruments, i.e., lights, stereo, remote mirrors, steering column tilt and seat adjustments, USB port, bluetooth pairing; safety features blind spot warning, lane departure, backup camera, etc. before leaving the dealership. For safety reasons make all your driving adjustments prior to taking the test drive. The salesperson will make a copy of your drivers license and leave the copy with management. This has become a common safety procedure because of auto hijackings of salespersons while out on test drives. The salesperson will also drive the car first off the lot.

Take the test drive over several types of terrain and driving conditions. Test the cars roll in curves, how much you lean vs. the car compensating for the force of gravity in curves. Check the glare from dash on windshield. Is it distracting? Listen for wind noise around the doors, side windows, front windshield and sunroof, if there is one. Listen for road noise created by the tires and transferred to the driving compartment. Perform a high speed merge. Does the car accelerate quickly enough to get you out into traffic safely? Find an area with no cars to perform a panic stop. Does the car swerve or come to a stop in a straight line?

When driving over rough roads, speed bumps, railroad tracks, etc., do you hear any unwanted rattles, squeaks or other annoying sounds. By now you should also determine if the shoulder safety belt still feels comfortable. Did the belt rise up under your neck? If so, see if it can be adjusted from the mounting on the car’s frame. How are the seats feeling at this point? Do you need to readjust the steering column tilt? Can you see all the necessary instrumentation? If you’re into music, how is the sound system performing? Can you hear all the speakers? Get demonstration on setting up the sound system.

Pull over and let the salesperson drive for awhile and you sit in the back. Check for seating comfort, noises, head and leg room, controls that your children may operate, windows, door locks, etc. Take over driving again and this time pull into a parking lot. Test parking straight in, at an angle and parallel. Did you notice any blind spots? Could you easily determine the front and rear distances to the next car?

Your test drive should be as close to your every day driving conditions as possible. Take 45 minutes or more to really learn the feel and handling of the car. Remember, you’re going to spend a considerable amount of time in your car. So, it’s very important that you take as much time to thoroughly test the car to be sure it will meet your expectations and needs.

With the recent hands-free driving laws check connecting your cellphone with bluetooth and test making a call. That is if your car has these features.

Questions to ask the salesperson: Does this car have a donut or full size spare tire? Where are the hidden compartments for spare change, cup holders, etc.? How do I set the clock? How do I set the radio? Where is the fuse box?

Monday, February 4, 2013

Auto Residual Values


Residual value is what your lessor predicts the leased car will be worth at the end of lease term. Residuals are predicted by using actuary tables based on previous resale values of like vehicles. Some cars will maintain their value and others will not. The higher the cars residual value the lower the monthly lease payment. The higher the cars residual value the higher the end of the lease purchase option. Lessors will vary the residual value to compete for your lease business. This means that the car you want to lease may have different residual values established by each Lessor. The residual value directly affects your monthly lease payment and must be disclosed to you. In the majority of leases the residual value is also the end of lease purchase price. So, a high residual value will lower your monthly payment but it will cost you more to buy the car under the end of lease purchase option.
NOTE: Residual value will lower your monthly payment by reducing the amount of the car's value you use. Example: 
Cars value is                     $10,000.00
(-) residual value                  4,000.00
                                   $ 6,000.00*
*Car's new value that monthly payment is calculated on. 
Residual values is one of the most abused parts of auto leasing. Companies would inflate the future value of a vehicle to lower payments and be competitive. Inflated Residual Value is one of the main reasons auto leasing almost died.
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Sunday, January 20, 2013

Auto Dealer Incentives - The Real Way to Get the Best Deal

Auto manufacturers entice their dealer body to sell more of a particular model by offering enormous monetary incentives. These are unadvertised dollars that go directly to the selling dealer. The incentive is time sensitive based on the dealers performance against quota and vary by region and model.

 Makes you want to run right out and buy a car doesn’t it?

As a prudent shopper you can begin to see why the "best deal" is such an elusive animal. Unless you truly study the market, live in the right region, pick the right model and buy during the designated time frame from the dealer that meets quota you really don’t have any chance of beating the system.

The car dealers potential loss of huge incentives are a major reason why several people can buy the exact car from the same dealer and get different prices. Some dealers are more willing to pass along a portion of their incentives to further reduce your price to earn your business. If you negotiate a great price and get the manufacturers rebate and before you walk out the door the dealer offers you further discount, you’ve done a good job. Now, do you really only want $50 over invoice? Don’t expect dealers to give you all their incentive dollars. That’s like giving up your Christmas or performance bonus.

Keep this thought in mind, car dealers are in business to make a profit. They should be allowed to make a profit. But, you don’t want to be the one they make all of the profit on.

Questions to ask the salesperson: Does this model have a dealer incentive? If so how much? When does it expire? How close are you to meeting the qualifying quota? Did you meet quota last month? Which models have a manufacturers rebate and dealer incentive?

Thursday, January 17, 2013

Are Car Salespersons Better or Worse?

If you want to see if you have the mettle to survive in sales try selling cars. Not only are you up against a more knowledgeable, sophisticated and intelligent car buyer you’re also matching wits with management.
                                                                                          

Turnover among car salespersons is over 50%. The work days are ten to twelve hours, work week is 6-7 days and filled with hours of idle time waiting for a customer to come in or call. Commissioned sales is the staple pay plan for car salespersons and the pay plan changes at management’s discretion. If you don’t sell you don’t get paid. Rarely will a buyer come back to purchase so making the deal today is the standard order of business.

Car salespersons are the butt of numerous jokes and the position is not one a person aspires to become. Jumping from one dealership to another is a common practice with car salespersons because of pay plan and management changes.

Even under all this adversity car salespersons are getting better at their jobs. The NADA ( National Automobile Dealers Association) has established an excellent sales training and certification program to better prepare the salesperson for the rapidly changing auto industry. Manufacturers provide satellite transmitted product training courses directly to the dealership. Online and computer program are also provided by the manufacturers to dealerships to assist in salespersons training.

On site and off site seminars are provided by special finance companies, leasing companies, and computer hardware & software providers to keep the salesperson abreast of these companies’ products and services. Consultants are brought in to enhance the salespersons people and interpersonal skills. iPads, tablets, laptops and smartphones are the the new tools of the salesperson.

Training today’s car salespersons is taken very seriously by dealership owners. Owners are acutely aware that the new type of car buyer is not going to tolerate the sales tactics of the past. Often middle management at the dealership forgets the owners’ desires because of the everyday pressures to produce. The car business is very competitive and there are millions of dollars at stake each year.

The car salesperson is a pawn in the sales process. Seldom will management give the salesperson the autonomy to sell cars the way they know is right. So, if you come across a salesperson that seems to be from the old school more than likely it’s a function of that dealers’ unchanging management style.

Today's customer is better prepared, more knowledgeable and less likely to except less than superb treatment from a salesperson. Customer satisfaction during and after the sale is #1 priority.

Questions to ask the salesperson:  What type sales training have you completed? How long have you been selling cars? How long have you been with this dealership?

Tuesday, January 15, 2013

The Credit Report - Is it a Real Reflection of You?

The single most critical document used to determine your credit is your credit report. It's also the most abused source of information. Is your credit report an accurate reflection of you and your buying habits? More important, is it a true reflection of your past debt payment record?


With identity theft on the rise you may want to review your credit report every six months.

There are 3-4 major credit bureaus that businesses report your payment history to on a monthly basis. How your credit history is reported will make the difference between your getting a new or used car loan as well as at what interest rate. Your credit report determines if you are a very good or very poor credit risk. All that's needed to access this information is your social security number.

Some of the information listed on your credit report is: name of business that extended you credit, date opened, date closed, type account, terms, high amount loaned, balance, amount past due, payment profile, inquires from other businesses, ex-spouse accounts, judgments and dispute comments. As you can see if you don't know what's on your credit report you could be denied a car loan because of inaccurate information.

Within the volumes of information being sent to credit bureau's daily costly mistakes can be made. Computers make it very easy for auto dealers to access your credit report while you sit there or you're out on a test drive.

If you're refused a new or used car loan the lender is required to send you a letter of denial. This letter lists the name of the credit bureau(s) that provided your credit report. The salesperson will not and should not discuss the specific reasons for denial with you.

Under the Fair Credit Act you are entitled to a copy of your credit report. The report is free if you enclose a copy of the denial letter. You may also request a copy by calling the credit bureau and pay their fee.

Before going to purchase your new or used car get a copy of your credit report and review the information for accuracy. There is a dispute procedure outlined on the back of the report. You should review your credit report yearly.

It is not wise to visit several dealerships and let them run credit reports because numerous inquires are not looked upon favorably by lenders.

Questions to ask the salesperson: At what point do you run a credit report? If I give you a copy of my drivers license will you run a credit report? Do you run credit reports without written permission? What credit bureaus do you use?