By Laurie Brown

Maximize the Profit Potential of Your Retail Customer

Let us be honest. It is getting harder and harder to make a decent profit from our retail customers. The internet abounds with articles such as ” “ “ “ etc. Our customers are coming in and telling us how much over invoice they are willing to pay. So how can we maximize their profit potential?

1. Build value

A Purdue University study showed that when the customers perceived value exceeds the price, meaning that customers felt that they were getting more than they were paying for, eight of ten would buy. So where do we build value. Look to build value in each of the three p’s…Product, Place, and Person.

PRODUCT

Know your product inside and out. Find the interesting details that customers might not be aware of. When doing your walk around, it does not just spout off features. Make sure you tie features to your customer’s hot buttons. Use the phrase (or something like this) ‘and what that means to you is’…. It is best to talk about an average of three features per walk around position . It may seem like “more is better”, but studies show that customers tend to get overloaded and can have a negative reaction to too many features. Spend at least 15 minutes a day on a Power break, learn something new about your product, read owners manuals and articles about your product, walk the used car lot, talk to a mentor in your dealership. Do what it takes to be an “expert.”

PLACE

Then ask yourself “what sets my dealership apart?” Have we been in business for 40 years, are we a family business, are we a “no hassle” dealership, do we have more inventory than our competitors? How are we distinct? Once you have answered the questions, make sure your customers know it. Does your dealership have a mission statement? Do you know what it is? Talk about the goals of your dealership with pride.

PERSONAL

However, the most important place to build value is doing business with you. First, it is the only thing that you have to offer that they cannot get anywhere else. Your willingness to “go the extra mile”, be patient, be well informed, help a customer buy a vehicle, rather than “sell them” will go a long way towards setting you apart from your competitors. The world is changing fast, make sure you are aware of new technology that will help you stay connected to your customers.

Check your “bad attitude” at the door. Your customer is making an impression of you in the first 90 seconds that they are spending with you. Your smile, eye contact, warm handshake, and enthusiastic greeting will prove to them you are someone they want to do business with, repeatedly.

2. Follow-up! This is the place most sales consultants fall down. We are so busy dealing with ups that we forget that our best and easiest customers are the ones that have already bought from us. Get a customer contact program such as ACT and use it. Call your customers within 24 hours after the purchase to make sure, if everything is ok. If not, move heaven and earth to fix the problem. Write a handwritten thank you note. Then check in (with their permission) via a phone call, email, or newsletter at regular intervals. Make the contact personal. Use the information you learned when you were building rapport to continue that process. Ask how Johnny did in little league. Congratulate them on Becky’s graduation. The more personal the conversation, the more effective it will be. There are sales consultants who make their clients service appointments. The goal is to add value and have your name be on the tip of their tongues. In addition, be assured that they will come back to you when they buy their next vehicle.

3. Ask for referrals, your happy customers are your best salespeople. Let their great experience be a story that they tell repeatedly. In addition, if you have done an exceptional job, do not hesitate to ask them to recommend you to their friends, co-workers, and family. If you explain that you build your business by positive word of mouth, they most likely will be happy to help you out. Do not forget to thank them for their referrals. Again, a hand written note is essential. Some states allow bird-dogging. IF yours does not, you could “thank them” in a variety of other ways. A dinner at a local restaurant, or free oil change will tell them that you are grateful.

Following these simple steps will allow you to maximize the profit you can get from your customers. Remember it makes better sense to work smarter, not harder.

Laurie Brown is an international speaker, trainer and consultant who work to help people improve their sales, service, and presentation skills. She is the author of The Teleprompter Manual, for Executives, Politicians, Broadcasters, and Speakers. Laurie can be contacted through http://www.thedifference.net, or 1-877.999.3433, or at lauriebrown@thedifference.net