Memo to Ford Sales: Quit While You're Ahead

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  1

  Brian Rock

  11/03/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  Not only is this change on the way, it will provide massive benefits for both the manufacturers and buyers.
  
  Buyers will no longer have the annoying feeling of having been ripped off by the sales people (I seem to recall seeing research that over half of buyers think they probably paid more than they should), and as a corollary will likely be slightly more inclined to buy cars a bit more often.
  
  Manufacturers will have improved internal efficiencies and slightly higher turnovers.
  
  The sales reps are the only losers. I've had enough bad experiences with them I can honestly say I don't care.
  
  Now let's talk about real estate...

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  2

  ingoodcompany

  11/04/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  "...[car] sales reps no longer...justify their existence [and] ...over the years garnished such an unsavory reputation that most people would rather not deal with them."
  
  No added value? Unsavory reputation? Hmmm. I wonder what synonym comes to mind. Could it be, "sleazy?"
  
  Interesting stance, Geoffrey. There's no doubt that information age consumers are well armed and in many cases may just want the sales rep to get out of the way of the actual sale. However, next to home and college, ticket items just don't get much biggger for most people, commodity or not. Though I'd agree that times are changing, a reassuring smile and handshake from the seller is still a valuable tool on major purchases...for now.

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  3

  Bob Wileman

  11/04/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  Let's be clear about who is buying and what cars.
  What evidence do you have that private as opposed to corporate buyers are buying new cars on the internet?
  Would you buy a second hand car on the internet?
  I'm old fashioned and buy cars from people I know who provide me with useful information rather than tangling me up with websites that don't.

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  4

  Geoffrey James, Sales Machine

  11/04/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  Re Note 3:
  As always, Bob, you bring up important points. I think it's no secret that Internet sales are growing. Internet shopping, following by a close at the dealership have been a big part of the business for years.
  
  Fleet sales are a different issue. That's really more of a solution sale and involves all kinds of other issues, like buybacks, leasing terms, repair contracts, etc. Definitely would want a sale rep working on that one.
  
  Used cars are yet another issue. Car dealerships add value over private sellers when they guarantee the car for a certain amount of time. However, it's always a better deal to buy directly from the individual and have an independent mechanic check it over. Since the blue book is online, it's pretty easy to find out what the car is worth.
  
  Yes, I agree that we're talking about a relatively big ticket item here. Even so, we're talking about a commodity item, not a unique "solution" like a home and an education. I just don't see the value-add in retail car sales. What I do see is overhead in paying a commission.

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  5

  IanP2

  11/04/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  Geoffrey
  Internet sales is exactly the wrong model for selling big items especially cars.
  Why?
  Because any competent salesperson adds serious value to the transaction.
  If I buy from you over the net I buy to a price. I spend time comparing all the specifications and get the car most suited to me within my budget range. I generally won't buy many add ons or options to go with the car. I end up with the best basic model I can afford.
  If I go to my local dealer I spend time with someone who knows the ins and outs of his products. I get to know what the the options are and discuss which are useful, nice to haves or non-starters. Plus I usually get talked up to a better model because the salesman spends time understanding what pleases me in a car and advising on the best option.
  I like a car to be a workhorse and am not too fussy about looks, so I tend opt for the cheaper models. (I figure I lose less when they end up ragged around the edges). My local GM agent knows me and what I really need and he usually talks me up to to pricier models with more space, folding seats, better suspension, bigger engines etc.
  He also knows my wife is a bit of an environmentalist who has to drive a lot, so he directs her to compact models with fuel saving features and options that aid long distance driving.
  The long and short of this is, internet marketing of cars is all about basic models and basic prices. Retail selling is about adding value and fitting cars to customers. I'll stick to using my agent thanks.
  Ian

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  6

  abhisheksaggi@...

  11/04/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  I tend to agree with Ian

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  7

  Geoffrey James, Sales Machine

  11/05/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  Re Note 5:
  Ian, essentially what you're telling me is that cars have a lot of features/functions, therefore people need a sales rep to help sort them out. But I just don't see the product as being that complex.
  
  It's possible that I may be influenced by my own experience, though. Last time I bought a new car, I shopped on the Internet, found the car I wanted, test drove it and bought it (cash). The sales rep performed three functions: 1) handed me the keys, 2) took the money and 3) explained that the electronic key to open the back hatch didn't work on this model.
  
  He was wrong about #3, a fact I discovered some years after I bought the car.

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  8

  Ian P

  11/05/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  Geoffrey
  No, what I am telling you is that, in my view at least, a good sales rep can make the 'car buying experience' into an opportunity for both sides and ensure that I go back to him again, even though I know he is earning good money on the deal.
  A poor rep will simply take your cash and hand over the keys.
  
  Master, everything you have taught us is about this simple truth.
  

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  9

  Winning Workforce

  11/09/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  I?m guessing from the comment thus far that none of you have actually sold cars on commission. I have! There is a considerable amount of relationship building that goes into car sales especially used cars which can?t be researched except for general pricing.
  
  While I believe that the Internet has changed the way new car dealerships operate, there is still be room for commission sales particularly in used cars which sell at a higher margin and keep the dealership profitable.
  
  We like to think that buyers use the Internet and other resources to research cars and some do for new cars but most don?t. They come to the dealership with a vague idea of what they want. My job was to get them interested in a car, have them drive it, get them excited about the car, lower their expectations on the trade-in value of their car and show them how they could own this new car with a slightly higher monthly payment. I?d help them fill out a credit report, get them to write me a check for the down payment, introduce them to the finance guy who sells them the preferred company financing and other add-ons (where the real money is) and executes the sales agreement. In the mean time, I would get the car prepped for delivery and deliver the car to the customer.
  
  I spent lots of time reassuring the customer that they were getting a good deal and reinforcing their excitement about their purchase.
  

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  10

  Geoffrey James, Sales Machine

  11/09/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  Re Note 9:
  That's a lot of value add. But I specifically stated that new cars are a commodity, not used cars. I drive cars until they die, donate the hulk to charity for the write-off, and then buy a new one, always cash.
  
  I usually bring the cash in a bag with a big dollar sign sewn on it, like in the comics.

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  ingoodcompany

  11/10/09 | Report as spam

  RE: Memo to Ford Sales: Quit While You're Ahead

  I've bought more cars than I've sold, and I can tell you this, there are car salesmen, and then there are car salesmen. I've bought nothing but Hondas for the past 20 years because of one salesman who turned me around as a customer. Honda's reputation pulled me in there to look, and I bought a used car that turned out to be well squeezed lemon. I was ready to go out on a worldwide negative publicity campaign, and this gentleman saw my frustration and managed to talk me into trading that one in on a new Honda. I've bought new Hondas ever since from him alone, never even looked anywhere else, and refer friends regularly. He is the most credible salesperson I know...and I've known many. Employers measure sales folks on the "what have you done for me lately" scale. But when it comes to those rare big ticket purchases, most customers don't use that scale at all on their assessment of a good salesperson. One good deal for a customer can establish trust and result in a lifetime of repeat business, as long as the product performs. As long as boomers are still alive, car salespersons aren't slated for mass extinction just yet.