Sales Ratio: Starting out in the car business I knew it was a numbers game. selling cars is all about a ratio. The ratio gets better when you get better and based on the current market conditions. For example a new salesman with no experience usually would sell 1 to every 5 customers they encounter, equalling a 20% selling ratio. This was hard for me to understand starting out because I thought everyone that walked in the door bought a car, I had a lot to learn.
The ratio exists because of a few reasons:
1. Sale price of the car more than customer can afford
2. If the current vehicle to be traded in has an open loan on it greater than the Actual Cash Value (ACV)of the open loan.
Negative Equity3. Credit challenges
4. Customer can not produce Initial investment
5. Unrealistic expectations
6. Mis-communications
7. Lack of experience
8. Lack of Product Knowledge
9. Objections
10. etc; etc; etc;
The ratio can increased and reduced by any one or combination of any of these reasons. the ratio is not exclusively limited to any of the above reasons. As a new sales rep I knew I had to sharpen my skills in customer service, product knowledge, and the complete industry if I wanted to make this my new career and not just a job.
I had to understand that there are a few things I could not control. Have you ever heard the expression "my eyes are bigger than my stomach" or "champaign taste but beer budget", I had to learn the reason why the customer could not buy a car. We have all desied something more than we can afford. What young kid growing up in the 80's & 90's did not want a Ferrari after seeing Magnum P.I. or a Trans AM after seeing Smoking and the Bandit or Knight Rider? I know I am showing my age but we all aspire to something more in life.
I had to learn another thing that I could not control is a customer's "credit worthiness". Your credit is your meal ticket when it comes to large or major purchases like, land, boats, homes, and yes automobiles. Your credit worthiness not only determines the rate inwhich you can borrow against but for home many months you can borrow for. I had to learn that everyone deserves a a chance to purchase a car, but it is really all up to the banks. The relationship is between the customer and the lending institution, not the dealership. The dealership is like the match-maker for the lack of better words.
What I have learned was master all of the above to provide the best customer service.
Labels: Acura Fayetteville NC, Chevrolet Fayetteville NC, Fayetteville Used Cars, Honda fayetteville NC, Mazda Fayetteville NC, Nissan Fayetteville NC, VW Fayetteville NC
