Magazine for the professional tire industry
Issue link: https://mtd.epubxp.com/i/328077
MTD June 2014 T here is no escaping, once you are in the tire business, you're pursued by the tire paparazzi. Neighbors, friends and family are constantly asking about tires; you are at a restaurant, the grocery store, watering your front yard, you can't get away from it. Sometimes, when I can't spend as much time with them as I'd like, I refer these pesky people to a well-done dealer's website for reference. However, they are usually relentless. Why? Be- cause we have what they want: Personalized, professional service. My paparazzi think I know more about tires than I do. I certainly know enough, but it's the personal service and atention that seals the deal every time. I'm a value-added salesman, and when I'm approached by my paparazzi, I know that price is important, but I leave the price quote until last. I always start and end with value. People approach me because they are also looking for a deal, an insider deal; usually they are looking for a good price on a good tire. Add value to every sale! Add value at every point! Open with value! Close with value! Value sets the hook! There is constant tension between customer orientation and proft orientation. Understanding your orientation and the customer's orientation makes the question of "When to discount?" more clear during the sales presentation. Because I am an added-value type person, I naturally use a value- added sales approach. Tis works for me and my paparazzi because it's perceived as genuine, which it is. I always atempt to frame the sales presenta- tion in value. I frmly believe that a sales presentation framed in value yields beter proft for the seller and beter value for the buyer. If the conversation is only about the price of the product or about the other guy's price, sooner than later you'll be making a price concession. Giving in on price ofen seems like defeat or loss, but there are options. When the value-added approach is not gaining traction (pun intended), you have fallback options. • Ofer alternatives. I'm assuming that when you are ofering a value-added product, it has a beter proft margin than a lower-priced item. So, if the conversation becomes all about price, you should ofer a lower-priced alternative. Tere is a skill to selling down. Ofering a product or service with less value must also be done skillfully. Te lower-priced product must not be condemned as inferior, but only sold as a lower priced product. • Clearly verify. Before dropping the price or ofering a lower-priced alternative, verify the customer's needs as you make another atempt at selling a beter value product. Also, verif y competitor pricing and your customer's claims. As you know, not all customers tell the truth exactly the same way. • Verify your actual cost(s). "Low gross is beter than no gross," as the old saying goes. Shaving margin is necessary in today's Internet environment with emboldened consumers. Proft is proft only if you collect it. I've always felt that at the end of a good sales-and-margin day, a litle extra GP helps the botom line; of course, the same is true on a poor sales day. Smaller proft dollars are still proft dollars. • Give a concession, gain a concession. Another famous saying is, "Get the greenbacks, not the comebacks." I understand the mind set; ofen a customer promises to come back, but doesn't. I like to gain a concession when I give a concession. When I give a price conces- sion, ofen the customer feels somehow obligated to reward me. I take advantage of the moment to ask the customer for future business. If you work in a store on a daily basis and you work this technique, you'll be surprised at the number of customers who return and remind you. As sales professionals, we ofen feel beat up over pricing. In the next few months, I plan to reveal some pricing strategies that, when applied consistently and appropriately, will increase both sales and margins. Let me leave you with this. Last week my neighbor (paparazzi), who drives an Audi Crossover with 21-inch tires, asked me about replacing her tires. She had heard they were "super expensive." I looked at her tires and assured her they were fne for now. By telling her not to worry, I set the hook with my comment. I let her know of several manufacturers that have her size tires on special all the time. You could see the tension drain out of her face. Hook set! ■ Wayne Williams is president of ExSell Mar- keting Inc., a "counter intelligence" frm based in La Habra, Calif. He can be reached at exsellmkting@gmail.com. Counter intelligence Reeling in tire sales You set the hook with value, not price By Wayne Williams 52