Handling the Price Objection Like a Pro with Steve Richards

Hector: 00:00:16

Hello and welcome to today's episode of sales coaching superstars.

Hector: 00:00:19

today's episode features Steve Richards.

Hector: 00:00:21

He's an automotive sales expert that focuses on honest,

Hector: 00:00:24

practical sales techniques.

Hector: 00:00:26

And on this episode, he talks about how to handle price objections, like

Hector: 00:00:29

a pro you're probably going to end up listening to this one a few times.

Hector: 00:00:32

So let's get into this.

Hector: 00:00:33

Here's handling the price.

Hector: 00:00:34

Objection, like a pro with Steve.

Steve: 00:00:43

All right.

Steve: 00:00:43

This demonstrates how to handle a customer who is getting a huge discount already.

Steve: 00:00:48

The vehicle has been discounted in this case.

Steve: 00:00:50

It's a Silverado truck it's been discounted thousands of dollars.

Steve: 00:00:54

Chevrolet is discounting it an additional $4,000, but the customer's

Steve: 00:00:59

doing what they've ordered.

Steve: 00:01:00

liked the truck, but now they're trying to work the salesman for a

Steve: 00:01:03

better deal in this particular case.

Steve: 00:01:05

As in many of the cases these days, , there's no more room.

Steve: 00:01:08

The dealer had to deeply discount the vehicle to attract the

Steve: 00:01:10

customer in the first place.

Steve: 00:01:12

But the customer doesn't know how the pricing models changed in this

Steve: 00:01:15

particular scenario, rather than negotiate with the customer I'm going to use

Steve: 00:01:20

three different price justification.

Steve: 00:01:22

The first price justification I'm going to use is the market-based price negotiation.

Steve: 00:01:27

The second is the package and options and accessories, strategy which

Steve: 00:01:32

should demonstrate to the consumer.

Steve: 00:01:33

I mean, they're getting a heck of a deal anyway.

Steve: 00:01:36

And thirdly, I'm going to go into my value properties.

Steve: 00:01:38

I'm going to do this every time before I ever negotiate, because in most cases

Steve: 00:01:43

there's nothing else to negotiate.

Steve: 00:01:45

Consumers don't recognize a good deal when they see it, because with all the

Steve: 00:01:49

tricks dealers who played on autumn in the past, it's not the consumer's fault.

Steve: 00:01:52

It's it's our fault in the business.

Steve: 00:01:54

But now.

Steve: 00:01:55

We've got to the point where we need to learn to justify.

Steve: 00:01:58

We need to learn to be persistent.

Steve: 00:01:59

You can't let your sales person look at the customer and say, well, gee,

Steve: 00:02:03

I'll be right back and go visit the wizard of Oz behind the curtain.

Steve: 00:02:06

All right.

Steve: 00:02:06

So have some fun with this watch it.

Steve: 00:02:08

These are three great justifications.

Steve: 00:02:10

They're honest above board, completely accurate, and the consumer will buy it.

Steve: 00:02:16

If your sales team can communicate.

Steve: 00:02:19

Effectively and confidently.

Steve: 00:02:21

same objection.

Steve: 00:02:22

Hey Steve.

Steve: 00:02:22

So, I mean, I like the truck and I want to take delivery of this truck today.

Steve: 00:02:26

I just want to know, can we do better on that 44, 6, the fact that you want

Steve: 00:02:30

me to drop my prices, evidence that you're a perfectly normal human being.

Steve: 00:02:34

This is not your first rodeo.

Steve: 00:02:35

You bought trucks before.

Steve: 00:02:36

Correct.

Steve: 00:02:37

How long ago was it that you bought you last.

Steve: 00:02:40

It would have been 2017.

Steve: 00:02:41

Okay.

Steve: 00:02:42

I'm going to guess that in order to get a good deal on that truck, you had to

Steve: 00:02:44

go back and forth with a salesman to get the best deal you possibly could.

Steve: 00:02:48

And that's what you want to do right now.

Steve: 00:02:49

All right.

Steve: 00:02:50

Things have changed Austin in all the changes that have taken place

Steve: 00:02:53

as 2017 are good for the consumer.

Steve: 00:02:55

Good.

Steve: 00:02:56

The massive movement to online shopping has literally changed the

Steve: 00:03:01

way dealers priced their trucks.

Steve: 00:03:03

Shoot.

Steve: 00:03:03

We don't even price them software prices.

Steve: 00:03:06

Look in order to attract you today, we had to deeply discount.

Steve: 00:03:10

This vehicle and then Chevrolet had to throw in another $4,000.

Steve: 00:03:14

If this price hadn't been attractive on internet, we wouldn't even

Steve: 00:03:17

be having this conversation.

Steve: 00:03:18

Would we?

Steve: 00:03:19

Of course not.

Steve: 00:03:20

You're doing what you've always done because the dealer's first

Steve: 00:03:23

price was never the best one.

Steve: 00:03:25

Hey, things have changed what you had to fight for in the past.

Steve: 00:03:29

Austin, you are now served up on a silver platter.

Steve: 00:03:32

In fact, it served up to you at home.

Steve: 00:03:34

Or at your office, because if we don't serve up a deeply discounted price to you,

Steve: 00:03:40

before you get here, you don't get here.

Steve: 00:03:42

Our phones don't ring, email, inboxes, don't fill up.

Steve: 00:03:45

Nobody shows up what you had to fight for in the past.

Steve: 00:03:48

You got, before you ever set foot on this property, you were a winner before

Steve: 00:03:52

you ever set foot on this property.

Steve: 00:03:53

The fact that you're asking for an additional discount,

Steve: 00:03:55

I understand it completely.

Steve: 00:03:57

You don't need to do that.

Steve: 00:03:59

I promised you something about an hour and a half ago, and I am

Steve: 00:04:02

not going to break that promise.

Steve: 00:04:03

I told you this would be a pleasant experience.

Steve: 00:04:05

Have we had a pretty good time?

Steve: 00:04:07

I told you would be the fastest purchases experience of your life.

Steve: 00:04:10

Correct?

Steve: 00:04:12

You're slowing us down.

Steve: 00:04:13

I need you, right.

Steve: 00:04:14

Object again.

Steve: 00:04:15

Say Steve.

Steve: 00:04:16

Nice wrap.

Steve: 00:04:17

So that'll read my lips do better.

Steve: 00:04:19

That all made sense.

Steve: 00:04:20

Steve I get it.

Steve: 00:04:21

I think that you guys could do better.

Steve: 00:04:23

Okay.

Steve: 00:04:23

I get it.

Steve: 00:04:24

And you know what, if you want a lower price on a Silverado, I can do that.

Steve: 00:04:29

That's not a problem, but you told me, in fact, you've been telling me

Steve: 00:04:34

for two hours and then I would go through everything this truck has.

Steve: 00:04:37

Okay.

Steve: 00:04:38

I obviously don't know the product.

Steve: 00:04:39

I would say.

Steve: 00:04:40

You said it had to have this, you said it had to have that.

Steve: 00:04:42

You said it had to have, this are all those things still

Steve: 00:04:45

important to you, Austin?

Steve: 00:04:46

Yeah.

Steve: 00:04:47

That's what I'm looking for.

Steve: 00:04:47

Okay.

Steve: 00:04:48

So we picked out the perfect truck, right?

Steve: 00:04:50

Okay.

Steve: 00:04:51

I can look, I can find a lower price on a different.

Steve: 00:04:54

I would not do that to you.

Steve: 00:04:56

I need your okay.

Steve: 00:04:57

Right here and right here, object again, say Steve, you're not hearing me.

Steve: 00:05:01

I want a lower price.

Steve: 00:05:03

Now I get that.

Steve: 00:05:04

This has all the features and we can step off and I could lose those

Steve: 00:05:06

features, but I don't want to lose those features and I want a better price.

Steve: 00:05:10

Okay.

Steve: 00:05:10

I don't blame you two things that I want you to remember.

Steve: 00:05:13

All right.

Steve: 00:05:13

Number one, no other Silverado around here.

Steve: 00:05:15

Comes with a 10 year, 200,000 mile powertrain warranty.

Steve: 00:05:20

Good.

Steve: 00:05:20

Anywhere in the United States or Canada with a small deductible coverage

Steve: 00:05:25

on all the internally lubricated parts of your powertrain plus seals

Steve: 00:05:28

and gaskets plus taxes and fluids.

Steve: 00:05:32

That's one thing, but the best thing about this whole thing is you don't

Steve: 00:05:35

need to waste any more of your time, because what we can do is I'm going

Steve: 00:05:39

to get this truck ready for delivery.

Steve: 00:05:41

And then I want you to spend when you get home, if you so desire the next

Steve: 00:05:45

hundred and 20 hours, trying to find the same truck on another website,

Steve: 00:05:49

which you'll be able to, I mean, shoot, we all carry the same inventory.

Steve: 00:05:52

You'll be able to find the same truck on any one of 5,000 different

Steve: 00:05:56

Chevrolet dealership websites.

Steve: 00:05:59

And if you find the same truck advertise for a lower price, anywhere in the USA,

Steve: 00:06:04

and it comes with the same benefits we offer you, just give all Steve

Steve: 00:06:07

a call and say, Steve, here it is.

Steve: 00:06:09

Here's the website address.

Steve: 00:06:11

I'll look it up and I'll just bring you down here, buy you lunch and

Steve: 00:06:14

give you a check for the difference.

Steve: 00:06:16

Okay, because you got a best value guarantee.

Steve: 00:06:18

I told you, you couldn't pay too much for a truck at premiere.

Steve: 00:06:21

You cannot now quit wasting your time.

Steve: 00:06:24

Okay.

Steve: 00:06:24

This right here.

Steve: 00:06:26

these are justification.

Steve: 00:06:27

What you were doing.

Steve: 00:06:27

is old fashioned negotiation.

Steve: 00:06:29

And by golly, if that doesn't work, then I have to do that.

Steve: 00:06:32

I'd love to tell you I could get a customer to buy everything.

Steve: 00:06:34

I got to say, that's bullshit.

Steve: 00:06:35

Right?

Steve: 00:06:35

I go, but multiple justifications before I ever negotiate a penny

Steve: 00:06:39

of profit away, because look, and we just can't be ever living shit

Steve: 00:06:42

out of this fuck already 6,800.

Steve: 00:06:44

Do we deserve to make some money when we sell a truck or a car?

Steve: 00:06:48

The answer is yes.

Steve: 00:06:49

, What's it cost to run this place.

Steve: 00:06:50

Don't answer the question.

Steve: 00:06:51

I already know.

Steve: 00:06:52

It's a lot, it's a lot, but more importantly, in order for you to make

Steve: 00:06:57

the kind of money you want to make in order to, for you to make the kind

Steve: 00:06:59

of money you want to make, we have to make some money on the vehicles that we

Steve: 00:07:03

sell a customer is going to do exactly what Austin did customer's going to

Steve: 00:07:06

do exactly what Vince did a customer's going to do exactly what I did.

Steve: 00:07:10

Come on.

Steve: 00:07:10

You can do better.

Steve: 00:07:11

You can do.

Steve: 00:07:12

Because they're used to doing it.

Steve: 00:07:13

It's the way we taught them.

Steve: 00:07:14

You can blame me for that.

Steve: 00:07:16

It was the way I was trained to do it.

Steve: 00:07:17

I was trained to bring out a worksheet and go, Hey, what'd he say?

Steve: 00:07:20

What do you think?

Steve: 00:07:21

Say no, do better in that room back, I'd run back to the sales desk and

Steve: 00:07:26

the same way re penciled the deal.

Steve: 00:07:28

We're going to get to the point very soon, guys, where you're not

Steve: 00:07:31

going to be able to go back to.

Steve: 00:07:32

our pricing has got to be so aggressive to attract people today.

Steve: 00:07:36

We cannot negotiate anything else away.

Steve: 00:07:39

And by the way, what he's doing is proacting to the

Steve: 00:07:42

objection, which is not smart.