David Lowe: 0:00

Today's Prepare to Win. We wanted to answer the question how do I get my buyer to pay more than they said they want to pay? How do I move them? And we had a specific car in mind, an actual deal that went down, an actual question from a salesperson. And so me and my manager, we went in there and we showed them the pricing, the V Auto and the KBB, and you know we've already done. They talked money, money, money, money, money. What'd they do wrong? Talk money, right. What should you be talking about here? Value, value.

Grace Lupoi: 0:51

Value. Hi guys, I'm Grace LaPloy and I'm here with David Lowe and we are on Season 2 of Prepare to Win, really excited. So we had. Our first season was really talking about principles that drive success, and now Season 2 is more so answering the questions that we get from those.

David Lowe: 1:07

Yeah, yeah, Hello everybody, Welcome back to season two. And, by the way, this is brand new. We're shooting in front of a live studio audience, Just joking. So we have our four-day boot camp here. Everybody say hey. So we've got our four-day boot camp here. Great salespeople learning to master the sales principles and the process and the techniques that we teach. It's been a great class and we thought we would start off this new season with the class and it's really perfect because in the last season we went over a lot of the principles that drive success.

David Lowe: 1:40

So you season one. You know there's natural laws kind of relate to it, and we talked about how we use those in the sales process. This season we're going to focus on questions coming from salespeople all over. We get questions all the time. Here's the situation what would you do, kind of thing, and so this season we're going to try to focus more on that. Now, by the way, a couple of things for our subscribers. If you're on the Dealership Playbook, you see there's quick links to sales tip videos, quick links, sales tips. You should go through those. There's a ton of answers for the questions you have in those sales tips. There's also a link to the Prepare to Win podcast on that too, so you can see that Is that cool, Okay, so let's start with the question of the day, and then we'll talk about that.

Grace Lupoi: 2:29

Okay, so we've got a customer and they are buying a 2024 Jeep. When it was brand new it's a hybrid, by the way when it's brand new, it's $50,000, and the sales price is $35,000. It's one year old $35,000 and the sales price is $35,000. It's one year old $35,000. And they're trading in a 2018 Jeep with 119,000 miles and the offer for that is $10,000. The market says it's worth $10,000. So the difference is, of course, $25,000. And this consultant called in and they said their customer was wanting to give them $20,000. They were offered $15,000 somewhere else. For their old car, we're offering $10,000. So what do we do and how do we not lose this deal?

David Lowe: 3:16

How do we close the deal? You guys got the scenario. This is real life Buying a one-year-old car that was 50 grand, new, great price at 35 grand. Guy calls on the internet, finds it great price. I got a trade with 120,000 miles, this one's hybrid, this one's gas. I want to trade it in. And then he comes in and they work a deal and it's 25 grand plus tax and fees a difference price. And the guy wanted to pay 20 and his justification was hey, another dealer gave me 15 for my car off a higher priced car, right? Isn't it funny? So people like to use whatever comparisons they use, not even Steven, right?

David Lowe: 4:00

And so what could we have done to close this deal, right? So what, I ask? I ask what did you guys do, right? And so me and my manager, we went in there and we showed them the pricing, the V auto and the KBB, and you know we've already done. They talked money, money, money, money, money. What did they do wrong To our money, right?

David Lowe: 4:29

What should you be talking about here? Value, value, okay, everybody, take a blank piece of paper real quick and on it real fast, as fast as you can. Write three things that you could say you guys don't. You haven't seen the car, but you know the descriptions of what we said. Three benefits of making this deal. Three things they're getting for their money. Just write three things that come to your mind. Real quick, chris, we should play the Jeopardy music during this time, during the podcast. Three things, there's a ton of things.

David Lowe: 5:04

But see, what most people do was, when they're confronted with price negotiations, they go and talk simply, what Price? Now you guys learn from us that whenever somebody says the price is too high, we use the resell re-ask tool, don't we? Step one, we show them what Empathy Good job. And then we take that empathy, we work from the heart, we go to their mind, we call that what Logic. And then the take that empathy, we work from the heart, we go to their mind, we call that what Logic. And then the third thing we're going to do is move from logic and redirect them back to what that whole package, that value. Once we've done that, we reassure them and we react. Okay, that's the principle.

David Lowe: 5:44

Now we've got a story. How do we put this story into that? Five-step resell? Yeah, does that make sense? You guys with me? Okay, but we start within our mind what is the buyer getting for his mileage. Let's just go around the room. Grace is going to write them up as fast as we can put them. I know you guys are probably listening to the podcast online and I hope that's being a benefit to you. You can also watch it and see our smiling faces. But Grace is putting on the board right now. Everybody just go around and we're going to shout one out Gas mileage, hybrid to gas. How much is that going to save them? Good Warranty, warranty. Oh my gosh, what is that worth? Brand new, almost brand new, light, new Right, good, keep going.

David Lowe: 6:27

More technology, more technology Great, good, keep going. I have more technology, more technology Great one. Keep going. I think you have rebates on hybrids. What is it Rebate on hybrids? Okay, so use one though. But you're right, hybrid, they're picking up a different technology. Keep going. Just the feeling of a new car, feeling of a newer car, the joy of a newer car. Keep going. Safety feature has been upgraded. Keep going. Comfort difference right.

David Lowe: 6:54

Future maintenance you got a brand new, reconditioned, a one-year-old car that was just reconditioned here and you're getting rid of a what A high-mile car that's going to need a lot of reconditioning, very good. Keep going. Sales tax on the trade Very good. Future savings Future savings on the car that they're trading in. Any reconditioning has to be done to that right. $50,000 to $35,000. They're moving up how many years? Six years, right. How many miles are they picking up? 100,000 miles. It went from 20 to 100,000 miles, almost.

David Lowe: 7:40

Are you guys with us? What else do they have? Do they have any other value in it? Is there a lot that we could say of what they're getting this person saving 15 grand off a brand new car. So if you bought this car, drove it a year and I said I'll give you 15 grand less for it, but that's what he's doing Buying it for 15 grand less than the new one. So there's a lot of things. So here's what we're trying to say.

David Lowe: 8:10

When our buyers talk price, what do we talk Value? What are you getting for the money? And often salespeople will get stuck at justifying the numbers instead of reminding what we gave the buyer already. You follow me, and the best way to get into this, of course, is empathy. Right, what is an empathy statement? I want to pay 20, not 25 grand, right, what is it Right? I'm the same way. Every time I go to buy something. I'm at home thinking here's what I want to spend, but when I find what I really want, it's always normal. Isn't that normal? Don't worry about it. The point of empathy is to take the pressure off the negotiations, true or false. Connect with the heart and then we use the logic. How did we come up with these numbers? Anyway, there's a place to talk about.

David Lowe: 9:06

The cool thing is, carlos, we went out to your car, right? You and I walked around, scanned it in and it's 120,000 miles. But boy, it's nice for 120,000 miles. Put that in the computer and, of course, you've got a lot of equipment. Put that in the computer. Every car needs something and you know the stuff coming up on your car. The computer took all that into account. And, coming up on your car, the computer took all that in account and that's how we came up with the trade. Every car being bought sold the trade for you can trust it. And we did the same thing with your new Jeep, did the same thing. Put that in the computer.

David Lowe: 9:39

And, by the way, that's why you called me from down south, didn't it? You came 50 miles because we had a one-year-old car at a great price. True, true logic. I got information to back me up, but logic won't close this. I want to pay 20 grand. You follow me.

David Lowe: 10:01

It's not that he doesn't see the numbers, it's just he doesn't feel like it's his best deal. Why? Somebody poisoned the well and told him we'll give you 15 grand for your car Off of what I'll give. Give you 15 grand for your car Off of what I'll give you 100 grand for your car. I mean, what does that even mean? Give me an apples to apples comparison. And if that was so great, why is he here now? You understand the 15 off of. I could sell you mine for 40, $15,000 for yours if it makes you feel better, but it's still what? $25,000. Yes or no? Okay, you guys get that, okay.

David Lowe: 10:37

So now that I've got the empathy and the logic, now can I go to all this? We have real trade value, not just getting the 10. We gave you that market discount up front of $2,000 on our used car. That's like what Twelve grand Kelly Blue Book or Blue Book Value, true? And then, of course, you add in the what savings, tax savings, and you don't have to do anything to your old Jeep Reconditioning savings. You're saving a fortune. So you're getting a lot more for your trade than you think.

David Lowe: 11:04

Plus, let's take a look at what you guys follow me. Could we go and flip the paper over, guys, and start writing out this value? See, today's prepare to win is preparing us to think through situations before you get to them, right? So if you feel like you're going to have a price problem with your customer or a difference problem they've indicated, I want you know whatever Before you leave your manager, maybe take your deal sheet and flip it over and make a list of everything that they're getting for their money. Make sense. I'll take you all the way back to 1980.

David Lowe: 11:45

1988, when I started running my first dealership. No computers, imagine that. No cell phones. We had blank sheets and the salesman had to write it out. You know, christopher Wilson, buying this car, trading this car, had to write it in my hand, and then you had to. For me, I wouldn't work your deal until you wrote. You know, 1988 Escort LX, tinted windows, rear defroster, cassette player. You had to list everything or I wouldn't work your deal.

David Lowe: 12:18

What were we doing then? Putting the value in up front. Here's what you're getting. What For your money? Does that make sense? Okay, and then, of course, once I go through these, how much is this going to save you? Do you think A thousand? Could you ask him, instead of saying you're getting better gas amounts, could you say, hey, let's talk about all the things you're getting, because I think this deal packs a punch. It's a great deal for you. Could I take my time with that redirect in value? Of course, this is not something. I've got these things. If you're going to put 20,000 miles a year on, how much is that going to save us annually? Let's quickly calculate it out. That makes up that difference right there, true or false? How about the warranty. Just one repair would cover that right. This is joy, safety, comfort, a future sales tax. We talked about savings.

David Lowe: 13:11

Now, are you guys with me? This is man. That's why this is a brilliant deal. What is that called? Are you sure? And then what I say? So let's do it. Give me your signature, let me get it cleaned and filled up for you. Okay, what is my re-asking? Without dropping one cent, say I'm confident. Good deal, good deal. And I just went through and explained to you why I thought it was. What Good deal.

David Lowe: 13:44

Now there's a couple of closes in here. I don't know if we have time to do today A couple of closes that we might point out. And how many years are they moving up? What's the cost per year? 25 grand divided by six. How much is that per year? Four grand, 44.

David Lowe: 14:02

To drive a car a year, what would it cost to lease a car like this? Six or 700 hours a month? The normal cost is seven to eight grand a year to drive a car like this, six or seven hundred dollars a month. The normal cost is seven to eight grand a year to drive a car and this person's moving up six years for what it's called a cost per year close. How about a cost per mile? Close, they're moving up a hundred thousand miles. What is each mile worth? According to how much do I write a check for every month when you drive your car? Sixty-five cents a mile is the IRS reimbursement for mileage. The lease is 25 cents a mile depreciation only 65 cents a mile depreciation gas and upkeep right. So somewhere in the middle is the real cost. Let's say it's 40 or 45 cents. They're paying 25 cents. 100,000 miles for 25000. So there's a cost per year and a cost per mile close here too, isn't there?

David Lowe: 14:55

Now, personally, I don't want to shoot all my bullets all at once. I'm going to use the resell re-ask and probably do this. Does that make sense? And if they say no again, then the five steps of negotiation kick in, don't they? All right, let me see what I can Keep in mind. Look at something you know that you're driving 25 grand. Let's look at this cost per year because I think you're stealing this. Follow me, can I try that again? Now I don't have to do all those up front. So 25, two, just get another four grand. All right, let me see If I can get you. Save you 100 or two. You do that right Now. I go into my what. Oh no, I want five grand. How close to this? 25? Can I tell them you'll go, you guys follow me. But can I use more story? Can I use my cost per year as I'm soliciting influence and all? Can I use more story? Can I use my cost per year as I'm soliciting an influencer? Can I use my cost per mile?

David Lowe: 15:56

Sales is about a few things. I would say. Sales is about confidence, it's about consistency, working that process and at the end, it's about creativity. How do I show them this works for you? Does that make sense? Today's Prepare to Win, we wanted to answer the question how do I get my buyer to pay more than they said they want to pay? How do I move them? And we had a specific car in mind, an actual deal that went down, an actual question from a salesperson. Does everybody have the path now? Are you prepared to win? When your buyer says I ain't paying that much, I want to pay less, can you go ahead and take value and put that into your five steps of resell, re-ask, empathy, logic, redirect, use it to reassure and reclose? You see how it fits. Isn't that kind of cool. I just wanted to find the comments on that. Were you good I?

Grace Lupoi: 16:51

think so, we're good.

David Lowe: 16:52

Rock and roll. So this is a different flavor for Prepare to Win. This year. Last year, all about principles. This year we want to try to connect those to your questions. If you liked this, go ahead, and if you liked,