Thank God for Ben Franklin. The King of Philadelphia and true free thinking american capitalist that understood that customer’s buy when value meets price. The general take on this string is that customers know what product (car) they want, have limited their options based on what they want and cannot, or will not be persuaded otherwise. So, where in this process did Steve’s value meet his price? When the water at dealership was cold? Or, was he just lucky enough to find a sales person that pushed his buttons?

What’s missing here is focusing on building trust and value because as an industry we are too worried every customer is looking at us with a jaundice eye and unless the sales department reveals some magic ‘up-front’ price the consumer will have nothing to do with us.

Most responses here are putting too many internet buyers in a box. And, in a way, so does Lithia as well as Plano Subaru. But, those dealers have a schtick and they spend a lot of money marketing their philosophy and it works for them. The message to the customer from this perspective is they will likely get a ‘yes sir’, ‘no sir’, or ‘problem’, or whatever common language they train their traditionally young and un-experienced order taking sales people to say. I wonder what the average age of their sales staff is? The mantra is ‘give the customer and the sales staff the least path of resistence to move forward on a car deal.’

That is all great. But, at what point does the internet customer want to be shown by a credible (trusted) professional on why he, or she should spend $15,000 on a used Subaru or $96,000 on a new Supercharged Range Rover? At what amount of money is it important to the customer to have someone explain why they should justify them spending it? Or, does EVERYONE that submits an on-line inquiry just want a price before they are willing to engage a salesperson? Most here are sharing how to make their information flooded website divulge as much information as humanly possible to capture their interest.

The challenge is finding the customers cues that allow a trained professional to truly engage that customer. Every customer wants a shopping experience. Especially when shelling out the dough to buy car. Are internet sales departments exploring ways to give that customer the shopping experience they want? If a dealership can enhance the shopping experience – and some do – what does that do to customer loyalty (assuming the dealer can deliver post sale with service, parts, etc).

There is no right or wrong answer. The real question is: “How could Steve’s shopping experience be enhanced?” I am not sure I belive the right answer is ‘give him a quick quote in a slick email and hope he responds’. Or, ‘hope he submits his cell so a real pro can corner him.’

Let’s hear some feedback on experiences of engaging customers that had their expectations blown away and where value was built above and beyond the price expectations.

“Customers who use the INTERNET must have lower prices because they are savvy and know something about our business.”

Hmmmm How about this:

“Customers who use the TELEPHONE must have lower prices because they are savvy and know something about our business.”

or

“Customers who use the FAX MACHINE must have lower prices because they are savvy and know something about our business.”

or this perhaps…

Customers who use the SHOWROOM DOOR must have HIGHER prices because they are NOT savvy and know NOTHING about our business.”

It just doesn’t wash friends. Cars (like houses boats RVs and leather jackets etc) have transaction prices based on the supply of inventory versus the demand in the public. If I can get all I want of the model you asked for and I have it in stock or can get it easily, KABOOM! you get the low price deal ’cause like my basketball coach told me once “I have the foul to give” BUT if the model in general or the color you want is in short supply and you won’t switch….Shazamm! you get the high price and I don’t shed one tear if you buy from anyone else. I have just one and I will sell it as high as I can.
I just turned a deal on an “07 left over that got sold $500 over list to a “Hard Core Mr Internet Manager I am sending this to 20 stores” kind of guy.

I was polite but firm and really meant it when I said I understood why he wanted it for less but my price was final.

Look, in 1760 something BEN FRANKLIN published POOR RICHARD’S ALMANAC. It had two pages devoted to the value of horses based on breed, age, and condition and POW! the invoice shopper was born!! I bet every blacksmith and stable owner in Philadelphia wanted to kill him!

People the internet will not save us nor will it doom us. It will not make us more gross and for sure will not make any less. The customer’s use of it can’t possibly make my car worth any less or any more. It is an information channel nothing more or less. One I like for a whole bunch of reasons.

I like to be controversial so I will ask all of you a question. If we all (and mean all of us) stopped answering the phones and emails tomorrow would Americans stop buying cars?

I would have to agree with Jason’s post about “Steve does not represent anywhere near the vast majority of the people who come to our websites”. Very seldom does just a quick aggressive quote over the phone or email ever turn into a deal. I would say It works less than 10% of the time.

Now here is a new idea I am trying. 2 days ago I got a customer that stated this:

“To: Volvo Internet Sales

I am sending this email in regards to an immediate order for a 2008 Volvo S40.

I am contacting the 20 nearest dealers within a 360-mile radius for the best offer.

I am well aware that the order will take up to three months for delivery.

Please email me with your best offer ASAP, and I will consider your business.
I intend to place the order after satisfactory conditions have been met.
Thank you.”

Now if any of you remember my previous post about not being able to quote numbers (I finally got the owner out of that frame of mind…thank god) This kind of an email is something my owner won’t compete with. These guys out there just take too big of losers. So…. I created a gmail account and send the guy a BLOW OUT quote. Not too deep but enough to compete with the bigger guys out there. Meanwhile I’m working my end trying to build raport to earn his business. No response to any of my emails from the dealer email. Instant response from my gmail account which is a 4k loser. Way to deep for me. The kicker here is he is still shopping me! Still not committed to buy from me at that price. If only the market had more Steve’s out there.

Thanks for the post Steve.

Johnny

I totally agree with you! Marketing to me would be wasteful, I will find YOU when I buy, and I own my cars long enough that the last three were donated to The Salvation Army (too many problems to think it right to palm off on some poor family)

I also am on board with the avoidance vs knowledge debate. The only reason I ever found out about Edmunds was cause the previous experiences had been so bad. If the dealership can build enough trust I would be there in a heartbeat… In fact, after reading his book, Sewell’s was the first place I went, and was not trying to really haggle.

steve

Steve does not represent anywhere near the vast majority of the people who come to our websites.

Of course it is wise to have a process in place to accomodate his type of shopper when they do cross our path… but don’t lose perspective and forget about the other 98% PLUS.

I get anywhere from 100-300 people a day to our website. Half of them are probably going to be buying a car from SOMEONE – and there MIGHT be 1 steve in the bunch.

I personaly don’t build my marketing strategy centered around catering to that ‘persona’. I let the market tell me what it wants – and it tells me the vast majority:
1) do NOT have much more then a basic idea about what vehicle they want.
2) The experience they are trying to avoid is high pressure and feeling like they’ve been beat up and treated badly. They’re not trying to avoid dealerships – they’re trying to avoid a bad experience.

These are the people who I choose to build my internet strategy around. I certainly hope we accomodate the ‘steve’s’ out there when they do contact us – but I don’t devote the bulk of my time and energy trying to market to them. At least not until I have my target market well taken care of…

After you bought the Infinity I-30 and hung up the phone, did you wonder if you could get an even better deal?

Wayne

I was thinking a cell phone number and my “Which” email only was as anonymous as was likely to get a reply. And some still never got back to me. No last name given. Plus I have free incoming minute, so not a big deal if they keep calling and calling…

Funny, Park PLace Plano Lexus initially sent me the 3 packages, and no personalized info at all. Just his email and number, so it was not like the service was great at that point. But when I emailed him back my plea, he said he then thought perhaps I was not a car sales guy “shopping him”.

Of course had to check around to make sure the info on packages being “mandatory” was true, but Edmunds forum confirmed it for Toyota Southeast (?) sales region.

By the way , Wayne, I bought my last car, Infinity I-30 over the phone in ten minutes. Grubb’s manager thought i was joking at first… lol.

steve