Steve Richards is the Vice-President at MOTORTREND Certified Powered by EasyCare and an , author, speaker, sales trainer, and automotive sales and process scientist that helps dealers create a better value proposition. On this episode, Steve talks about handling price objections like a pro — and not like a car salesperson.

Subscribe to Steve’s YouTube Channel

Follow Steve on Twitter

Connect with Steve on LinkedIn

Hello and welcome to today's episode of sales coaching superstars.

today's episode features Steve Richards.

He's an automotive sales expert that focuses on honest,

practical sales techniques.

And on this episode, he talks about how to handle price objections, like

a pro you're probably going to end up listening to this one a few times.

So let's get into this.

Here's handling the price.

Objection, like a pro with Steve.

All right.

This demonstrates how to handle a customer who is getting a huge discount already.

The vehicle has been discounted in this case.

It's a Silverado truck it's been discounted thousands of dollars.

Chevrolet is discounting it an additional $4,000, but the customer's

doing what they've ordered.

liked the truck, but now they're trying to work the salesman for a

better deal in this particular case.

As in many of the cases these days, , there's no more room.

The dealer had to deeply discount the vehicle to attract the

customer in the first place.

But the customer doesn't know how the pricing models changed in this

particular scenario, rather than negotiate with the customer I'm going to use

three different price justification.

The first price justification I'm going to use is the market-based price negotiation.

The second is the package and options and accessories, strategy which

should demonstrate to the consumer.

I mean, they're getting a heck of a deal anyway.

And thirdly, I'm going to go into my value properties.

I'm going to do this every time before I ever negotiate, because in most cases

there's nothing else to negotiate.

Consumers don't recognize a good deal when they see it, because with all the

tricks dealers who played on autumn in the past, it's not the consumer's fault.

It's it's our fault in the business.

But now.

We've got to the point where we need to learn to justify.

We need to learn to be persistent.

You can't let your sales person look at the customer and say, well, gee,

I'll be right back and go visit the wizard of Oz behind the curtain.

All right.

So have some fun with this watch it.

These are three great justifications.

They're honest above board, completely accurate, and the consumer will buy it.

If your sales team can communicate.

Effectively and confidently.

same objection.

Hey Steve.

So, I mean, I like the truck and I want to take delivery of this truck today.

I just want to know, can we do better on that 44, 6, the fact that you want

me to drop my prices, evidence that you're a perfectly normal human being.

This is not your first rodeo.

You bought trucks before.

Correct.

How long ago was it that you bought you last.

It would have been 2017.

Okay.

I'm going to guess that in order to get a good deal on that truck, you had to

go back and forth with a salesman to get the best deal you possibly could.

And that's what you want to do right now.

All right.

Things have changed Austin in all the changes that have taken place

as 2017 are good for the consumer.

Good.

The massive movement to online shopping has literally changed the

way dealers priced their trucks.

Shoot.

We don't even price them software prices.

Look in order to attract you today, we had to deeply discount.

This vehicle and then Chevrolet had to throw in another $4,000.

If this price hadn't been attractive on internet, we wouldn't even

be having this conversation.

Would we?

Of course not.

You're doing what you've always done because the dealer's first

price was never the best one.

Hey, things have changed what you had to fight for in the past.

Austin, you are now served up on a silver platter.

In fact, it served up to you at home.

Or at your office, because if we don't serve up a deeply discounted price to you,

before you get here, you don't get here.

Our phones don't ring, email, inboxes, don't fill up.

Nobody shows up what you had to fight for in the past.

You got, before you ever set foot on this property, you were a winner before

you ever set foot on this property.

The fact that you're asking for an additional discount,

I understand it completely.

You don't need to do that.

I promised you something about an hour and a half ago, and I am

not going to break that promise.

I told you this would be a pleasant experience.

Have we had a pretty good time?

I told you would be the fastest purchases experience of your life.

Correct?

You're slowing us down.

I need you, right.

Object again.

Say Steve.

Nice wrap.

So that'll read my lips do better.

That all made sense.

Steve I get it.

I think that you guys could do better.

Okay.

I get it.

And you know what, if you want a lower price on a Silverado, I can do that.

That's not a problem, but you told me, in fact, you've been telling me

for two hours and then I would go through everything this truck has.

Okay.

I obviously don't know the product.

I would say.

You said it had to have this, you said it had to have that.

You said it had to have, this are all those things still

important to you, Austin?

Yeah.

That's what I'm looking for.

Okay.

So we picked out the perfect truck, right?

Okay.

I can look, I can find a lower price on a different.

I would not do that to you.

I need your okay.

Right here and right here, object again, say Steve, you're not hearing me.

I want a lower price.

Now I get that.

This has all the features and we can step off and I could lose those

features, but I don't want to lose those features and I want a better price.

Okay.

I don't blame you two things that I want you to remember.

All right.

Number one, no other Silverado around here.

Comes with a 10 year, 200,000 mile powertrain warranty.

Good.

Anywhere in the United States or Canada with a small deductible coverage

on all the internally lubricated parts of your powertrain plus seals

and gaskets plus taxes and fluids.

That's one thing, but the best thing about this whole thing is you don't

need to waste any more of your time, because what we can do is I'm going

to get this truck ready for delivery.

And then I want you to spend when you get home, if you so desire the next

hundred and 20 hours, trying to find the same truck on another website,

which you'll be able to, I mean, shoot, we all carry the same inventory.

You'll be able to find the same truck on any one of 5,000 different

Chevrolet dealership websites.

And if you find the same truck advertise for a lower price, anywhere in the USA,

and it comes with the same benefits we offer you, just give all Steve

a call and say, Steve, here it is.

Here's the website address.

I'll look it up and I'll just bring you down here, buy you lunch and

give you a check for the difference.

Okay, because you got a best value guarantee.

I told you, you couldn't pay too much for a truck at premiere.

You cannot now quit wasting your time.

Okay.

This right here.

these are justification.

What you were doing.

is old fashioned negotiation.

And by golly, if that doesn't work, then I have to do that.

I'd love to tell you I could get a customer to buy everything.

I got to say, that's bullshit.

Right?

I go, but multiple justifications before I ever negotiate a penny

of profit away, because look, and we just can't be ever living shit

out of this fuck already 6,800.

Do we deserve to make some money when we sell a truck or a car?

The answer is yes.

, What's it cost to run this place.

Don't answer the question.

I already know.

It's a lot, it's a lot, but more importantly, in order for you to make

the kind of money you want to make in order to, for you to make the kind

of money you want to make, we have to make some money on the vehicles that we

sell a customer is going to do exactly what Austin did customer's going to

do exactly what Vince did a customer's going to do exactly what I did.

Come on.

You can do better.

You can do.

Because they're used to doing it.

It's the way we taught them.

You can blame me for that.

It was the way I was trained to do it.

I was trained to bring out a worksheet and go, Hey, what'd he say?

What do you think?

Say no, do better in that room back, I'd run back to the sales desk and

the same way re penciled the deal.

We're going to get to the point very soon, guys, where you're not

going to be able to go back to.

our pricing has got to be so aggressive to attract people today.

We cannot negotiate anything else away.

And by the way, what he's doing is proacting to the

objection, which is not smart.