The Educated Shopper

What are you doing to train your sales force on how to handle the educated shopper? Well you thought the Internet was bad with your pricing, costs, discounts, etc. out there for all to see. You could get away with the fact that the information is incorrect and challenge the shopper.

As more credible businesses placed their information on the web more people now than ever trust it.

Here you are competing with the dealer down the street and/or cross town on price, service and products.

Then enter the car company. You didn't expect yours to put so much detail about the product, the business, the industry, recalls, etc., for all to see as well. How does the lonely salesperson handle the new shopper that did all his/her research for past 3 months on just your car? And, to make things even worse the shopper walks in and has it all on his/her laptop, iPad, tablet and/or smartphone.

Consumer information overload and salesperson information shortage does not create the best environment to make a sale.

Are you providing your staff with the same technology shoppers use to access information? Is device technology in your training program? Do you duplicate smartphone searches so that salesperson can quickly answer shoppers question on lot, in service area and/or showroom?

Remember the Internet is trusted by shoppers for information so why not use it to your advantage with the educated shopper.

Extended Warranty Service Contracts

With new cars lasting much longer the service contract business is on a decline. Dealers are finding more creative products to make up for the loss. But, why can't service contracts regain their status as a serious revenue generator?

The product is introduced in the finance office and in the BDC (business development centers) where staff can focus on not only service contracts but other profitable products as well.

Is there a need for service contracts since cars are built much better, car companies provide better warranties and cars perform better with fewer breakdowns? They are like insurance, you don't want it, hope you don't need it, but if you do, glad you had it.

One of the reasons for the slowdown in service contact sales is costs. Depending upon the type of car you drive and what you want covered the cost could be several thousands of dollars. Most lenders will include in the auto financing. The other is a lack of presentation of the product to all customers and explaining the details of coverage. That's why the Finance and Insurance with BDC will get better sales results.

Have you bought a service contract along with a new car purchase? Why did or didn't you?