Negotiation, Continued II

(Continued from last post.)

Not only are the buyer's choices curtailed by 'no haggling' practices, but the seller, too, is hobbled.  In order to be in business everyone involved in buying and selling must buy low and sell high.  That's how people can make a living.  The value they add is in hunting down, obtaining, transporting, reconditioning, and then offering for sale the items the final customer wants.  Without a financial incentive, they wouldn't be able or willing to do that.

Now, everyone agrees that 'fair prices' are the best outcome.  Fair prices allow people to keep buying and people to keep selling.  Naturally both buyers and sellers have differing opinions on what is 'fair'.  But the free market provides the least problematic solution to the disagreement of any system that we've tried.  If the seller puts the price too high, no one will even look.  Competitors will undercut and still be profitable.  If the seller puts the price too low, she'll be out of business quickly. And by bargaining, haggling, negotiating, buyers and sellers together can sift their way to a price that both can accept.  That's generally the fairest compromise.

Negotiation, Continued

(Continued from last post.)

Consider a buyer who is looking for a certain vehicle.  If negotiation is eliminated, the sticker price immediately determines whether or not the buyer can afford the car.  There is no option to possibly obtain the vehicle at a small discount.  Thus the shopping experience is actually made more, not less, difficult, because while Selection of the right vehicle is hard enough, finding the right vehicle listed at exactly the right price is even more difficult.

Target practice?

An analogy that comes to mind is forming friendships.  A single person can become friends with another single person fairly easily based on shared interests, experiences, and so on.  The number of elements that need to match is 1x1.  When these two single people get married, the ratio becomes 2x2.  It is harder for couples to find couple friends that haver the same cohesion, simply based on the odds.  Add children and the odds become 3x3 or greater.

Similarly with a no-bargaining situation.  The buyer may come across the precise vehicle they are looking for, but unless it is already priced within their pre-determined range, they are out of luck.  They have no options for changing their circumstances:  they can only adjust to circumstances, or walk away.

Certainly the life skill of being able to adjust to circumstances is laudable.  But virtually all human progress has been a study in finding ways of adjusting circumstances-- changing the environment-- to suit us.

Still more to come.

Negotiation

Possibly the most notorious element of the sales process is Negotiation.  While a small percentage of customers are comfortable with bargaining, many dread it and consider the whole process one of inherent bullshit.

I'd like to address that impression, because I both identify strongly with the feeling (I'm new enough to the car business to still recall how it felt to be on the other side of things) and have come to believe the opposite.  That is, I believe the process of negotiation results in the fairest, most clear results possible in the process of buying and selling.


It is generally accepted that auctions produce the best overall results for both buyers and sellers when more than one bidder is involved.  When a single bidder/customer is involved, the best process is negotiation, because it allows both parties numerous opportunities to re-evaluate their positions.  When a non-negotiable sticker price is used, the buyer is left with only a binary option: buy or don't buy.

More to come....

Presenting CarProof

One of the tools The Truck Merchant uses when presenting a given vehicle to a customer is CarProof.  CarProof is a service that gives an extremely detailed history of a vehicle based on the Vehicle Identification Number (VIN.)

This is a different Vin entirely.

VINs are found on at least one of three locations on a given vehicle.

Once you have the VIN, a whole world of possibilities opens up.  You can obtain a fairly detailed vehicle summary of the specifications of the vehicle from one of many VIN decoders.  (Here, here, here, or here, for example.)  You can check out the well-advertised CarFax, a service like CarProof just not as detailed (but cheaper.)  And, as per the ostensible point of this now-rambling post, you cand buy a CarProof.

CarProof tells you all the regions in which a given vehicle has been registered, telling you with a high degree of accuracy where it has seen use.  This allows you to get a picture of the kind of climate and conditions the vehicle has endured during its service.  CarProof also tells you whether the vehicle has been in any accidents, and almost always has information on the monetary costs associated with repairs for those accidents.  CarProof tells you about liens that are or were on the vehicle, and gives you many other reports which may be of interest.

This picture makes no sense.

The Truck Merchant, and everyone at CrossBorder, use CarProof as part of the presentation we do on virtually every vehicle we sell.  (A few exceptions include vehicles specifically purchased for wholesaling, import, export, or customer orders.)  As a Full-Disclosure Dealership, it is our goal that the customer know everything about the car or truck that we know.  That way every purchase is made by a customer going in with his or her eyes open.  That way is the best way to make sure customers are happy, and sales are stable and solid.

Presenting By Listening

When presenting a vehicle as part as the sales process, the Truck Merchant wants to err on the side of the taciturn.  My view is that less is more; rather than garrulously chattering on about the many characteristics  of a given vehicle, I'd like to focus what I say on the items that matter to the customer in question.  Engine size might be of no consequence to one customer, so I don't say anything about it to them.  On the other hand, another customer might have the engine size as a crucial point, so we discuss that in some detail.

The point is that just like we narrow Selection of the vehicle itself down from a large number of choices, I try to ensure that my Presentation of vehicle features contains a Selection process.  That's the number one job of a Truck Merchant:  helping the customer select the right vehicle, with the right features, for their needs.

Presents And Presenting

Over the last few days I and my family have greatly enjoyed opening a large number of presents.  There were items of all sorts:  electronics, clothes, toys, books, gift certificates for spas, books, and shopping malls, photographs, games of many kinds, food items, cash, etc.

One of the underacknowledged facts about presents is that some presents are received with excitement, others with ambivalence or even mild distaste.  I'm not aware of any such negative reactions this year in our family groups, but there have been such in the past, and it's not uncommon.  The gift giver and the gift receiver are on different wavelengths, and while the thought counts, the thought was off-base to enough of an extent that the gift wasn't particularly desirable.

That's one of the things that happens while Presenting, in the sales process, too.  There are times that however good the particular vehicle might be, it just isn't the right choice for the customer at the time.  As salespeople our job is to help the customer first with Selection.  There are times we simply don't have the vehicle in stock that the customer might want.  At those times we would love to keep an eye out for the kind of vehicle the need, or even to Locate one (we have a very effective Location service.)  But at that moment our Present, so to speak, isn't grabbing the customer by the heartstrings.  They'd rather have their money than the truck or car in question.  Thus there is no sale, no business to do. 

But the Truck Merchant views these kinds of situations as perfect opportunities to form a relationship.  My goal is to serve that customer with what their needs really are, not just what I'd prefer the need to be.  Thus, I want to help them find a vehicle, even if I'm not the one who will be able to sell it to them.

Sarah Smith of Golder's Green was noteworthy because, among other things, she gave fully to everyone regardless of the potential payoff for her.  I aspire to that for it's own sake.  It's only a bonus that in my understanding that also happens to be the way to long-term success in sales and business.

Merry Christmas!

Merry Christmas to all!  Christ came, God in the real flesh of humankind, to pay our unendurable moral debt and give us unlimited moral credit.  We were upside-down in our financing, and free-falling further into arrears with every day that passed.  He paid off our debts and so paid our Debtor in perfect goodness that we now receive no bills, invoices, or summons again.

Thank God for mercy.  Thank God for Christmas!

Presenting

Yesterday I gave an outline of the vehicle buying process as summarized by the VSA.  Today I want to briefly discuss some elements of the presenting phase.

During the presenting phase, the salesperson will show you vehicles and answer your questions about features and options.  The focus will be on finding the vehicle that meets your needs and budget.  This is the time to ask for the vehicle history reports and the mechanical inspections so that you can learn about the vehicle.

People come to dealerships at all kinds of points in the vehicle buying process.  They may be just beginning to shop, and thus may not be ready to focus on a particular vehicle.  They may be well along in their process and have something in mind.  They may just be coming to get some context in order to eliminate doubts and satisfy their desire to do 'due diligence'.  They may be ready to buy immediately.  Some folks just come by to look at vehicles as a way to kill time or relax.

When we as vehicle sellers meet a new customer, we begin with the belief that our #1 task is to help the customer with selection.  That is, to try to assist them in determining what particular vehicle will be the best possible choice for them at that point in time.  Often customers already know-- or believe they know-- what the 'right' vehicle is. That makes things easier, although there are times when the customer finds out during the course of the presentation process that their original ideas need to be adjusted.

I had one customer who came in looking for a lifted diesel truck but who eventually ended up buying a small hatchback car.  As we looked at various trucks he realized that his best choice was different than he had assumed.  He drove away happy in a vehicle that was right for him right now.  Perhaps in future he'll need a different vehicle, and we'll be there for him then, too.

The Process of Buying A Used Vehicle: Three Steps

In laying out a brief outline of the typical process undergone when buying a used vehicle, the Vehicle Sales Authority of BC (VSA) says:

The process of buying a vehicle often goes through three steps.  Depending on the size and practices of the dealership, you may be working with one or more people during this process.

During the presenting phase, the salesperson will show you vehicles and answer your questions about features and options.  The focus will be on finding the vehicle that meets your needs and budget.  This is the time to ask for the vehicle history reports and the mechanical inspections so that you can learn about the vehicle.

While negotiating, the focus will be on the price and the purchase terms for the specific vehicle you have selected.   During this phase you may be working with a manager.

Once the details have been decided, the purchase or sale agreement, tax and transfer forms will be completed.  This documentation phase may be done in the business office.

 The Truck Merchant is a big believer in following a well-thought-through, professional process.  Generally, it's the best way to establish fair agreements between happy people. 

More on this in upcoming posts.
 

Supply And Demand

Keith Griffith of About.com discusses used vehicle prices.  From his blog:

• The average wholesale price in November was $9,519, a 9.3-percent year-over-year gain and a 0.6-percent upswing from the previous month.
• The Bureau of Labor indicated that the used vehicle consumer price index was up 2.3 percent year-over-year in October -- which is the most up-to-date government data available -- and this marked the first year-over-year jump in the index in 16 months
• Average prices for trucks were up 15.7 percent from November 2008, while car prices climbed 3.7 percent from a year ago.
• The retail side of the used-car market saw a 34.2-percent increase in sales from the prior month, which helped to mute the 41-percent decline in October
• Certified pre-owned sales dropped 18.4 percent year-over-year and were off 14.3 percent from October.

 Here is a picture of lemon meringue pie.

When there are only so many pieces to go around, the cost of each piece goes up.  Thus it is wise to obtain your portion early.

We're open until 5pm today.

The stats in this post are US based.

Here's The Excursion

We found the Excursion (see previous post.)  One of the bosses had it.

I didn't inquire further.

On Anomalies

I just spent a little time with a nice young couple who are in the market for a GMC diesel truck.  They want a crew cab, heated seats, and hope for a canopy for the box to provide quarters for their two friendly dogs.

This 2006 GMC 2500HD caught their attention.  They really enjoyed the ride, and especially the wife really thought it was a nice truck. But they'd recently looked at (not driven) another truck across the way that was priced about $10,000 less.  With that in mind they had a hard time with the price of ours.

I don't blame them:  our truck was about $34000, the other about $24000.  That's a big percentage difference, and a lot of real dollars for us regular folks.  We spoke for awhile about the situation, and while they really liked our truck, they left with only my business card and a grin.  (Silly jokes come free from TTM.)

One of the things I left them with to mull over is the nature of market anomalies.  All dealers have virtually the same access to vehicles:  the same auctions, the same sources, the same blue and black books, the same information on what this or that kind of car or truck is 'worth' at any given time.  And all dealers in a given area compete with one another to draw the attention of the vehicle-buying public and to make a profit.

If there is an anomaly in pricing of a given vehicle, that is worth investigating.  Maybe someone got divorced, maybe there was an estate sale, maybe someone won the lottery, bought a brand new Bentley and just dumped their vehicle for a token trade-in value.  Maybe the dealer has decided to become a monk and is giving up his worldly possessions.  Maybe you've come across one of those unbeatable deals you hear about. Maybe you should jump at it.

But there are other maybes, too.  Maybe the vehicle has been in a big accident.  Maybe it's been used hard by it's former owner and is ready to collapse. Maybe it isn't a diesel.  Maybe the truck is another Christine.

Whatever the reason for the anomaly, it should be a cause for some significant due diligence.  Get a CarProof.  Get it independently inspected by a competent third-party mechanic.  Go over it with a fine-tooth comb yourself.  Find out why it is priced so well. If the dealer can't give you a clear rationale as to why he or she is giving up $5000+ in profit (after all, it would still be a steal priced $5000 less than the competition!) I'd suggest being very careful indeed.

If it sounds too good to be true....

Pyrite

2004 Ford F-350 With A HUGE Lift

This truck stuns the senses as it moves majestically by.  If you've ever seen the movie of Stephen King's The Mist, in the last 5 minutes of the movie a huge otherworldly creature is seen at a distance through the fog.

It must be 20 stories high, the size of several brachiosauruses.  It makes a staggering foghorn klaxon sound that overwhelms the mind, and the earth shakes with its passage.

 This truck has a similar feel: it operates on an entirely different level.  You need a ladder and climbing gear to get in and out of this thing. Loaded, leather, sunroof, short box: a stunning truck.

People notice it and stare in admiration. Even people who don't know or care about trucks are compelled to recognize it's impressive mechanical aesthetic. It's a dominant, athletic, aggressive piece of machinery.

Even our website guy who usually takes pictures was made fearful and timid like a little girl and didn't dare climb into the thing.  He just stood, trembling with fear, and held the camera up as high as he could to take these interior shots.

It's a beautiful truck inside and out.  101502 kms. Black exterior, slate grey interior.6.0L, 8 cylinders.

Come see this truck. Buy it, or when it drives by you you'll be filled with regret.

Drive A Ranger

We've got a really nice little 2007 Ford Ranger with the FX4 Level II package.

One customer had this to say about his:

Awsome Looking truck, TONS OF OPTIONS standard and the 4.0L V6 Hauls my 23ft Yamaha Up Crazy hills!

Just picked up my 2007 ranger fx4 level II on July 5th and already deeply satisfied over my previous f150 crew cab...WAY more options..WAY cheaper..Tows and goes same places my old crew did..whats not to like about this truck? Oh and the chicks Dig it BIG TYME q=)

He's clearly satisfied.

Vehicle Summary
Year     2007      Stock Number     R21955
Make     Ford      Interior Color     Black
Model     Ranger      Exterior Color     White
Trim     FX4 LOAD 4WD   
Drivetrain     Four Wheel Drive
Doors           Transmission     Automatic
Price     $18,800.00     Engine     6 Cylinder
Air bags     Driver side, Passenger side      Brakes     Anti-lock brakes (ABS)

For the commuter who needs four wheel drive and a truck box, this can't be beat.  Excellent value.

The Flyer

Is this the flyer?

No.

Is this it?

No again.

This?

No

 

No

 

NO!

Then what.....????


THIS is it.

Stay tuned for more!

BOXING DAY BLOWOUT!

Applewood's Crossborder Vehicles is having a huge

BOXING DAY BLOWOUT SALE!

This gal is not currently scheduled to appear.

We're offering one door-crasher special each day at prices so low you'll have to think of your own superlatives; there isn't enough profit in it for us to even open the thesaurus.  And we're passing the savings on to you!

 Watch this blog for details!

Where's The Excursion?

The good news:  the snow is gone.  The bad news:  so is our 2005 Ford Excursion.  It's been misplaced.  Lost.  Differently located.

It hadn't even been stocked in.

Freezing Rain, Trucker's Gain

The weather outside is indeed frightful.

A few centimeters of snow last night was coated with freezing rain making something like a sugar-coated souffle over everything. Parking lots and roads that were snowplowed just before the rain have become sheets of fragile ice.  The temperatures have now risen, which means the roads are improving.

But this is great weather for selling trucks, because people are undergoing traumatic near-death experiences as they slide helplessly through intersections and careen off highways in their bald-tired rear wheel drive heaps.  Oh, the humanity!

Today we've got a good number of high-end SUVs that are ready to be driven off the lot and into the snowy streets.

Two Land Rover Range Rover Sports, Supercharged.

This 2007 Lincoln Navigator Ultimate.

 

Or this 2007 Cadillac Escalade.

We've got many more, at pretty much every price point from $15,000-$50,000.  Now's the time!  Don't wait!

Sold In The Snow

Today was a busy day in the snow, with The Truck Merchant running back and forth between customers who were on a mission to get 4 wheel drive for the snowy conditions.

One couple looked at a few SUVs and are returning tomorrow to view a 2005 Pathfinder.

Another gent purchased a 2004 Dodge Ram 3500.

Stay warm!

What's Your Problem?

Sooner or later just about everyone has a vehicle problem.

Maybe the car you're driving is getting old and worn out.  Maybe you're burning too much gas, or oil, to have your transportation needs met in that van any longer.  Maybe your lease is up, or you're upside-down your financing.  (That is, you owe more than the vehicle is worth.)  Maybe you need four wheel drive and only have two in your current car.  Maybe you need a truck for work, or maybe you need more seats as the family grows.  Maybe you've worked hard and want leather with heated seats.  Maybe a navigation system or a DVD player is becoming something you dread driving without.

Whatever the problem, The Truck Merchant is here to listen.  I'd like to hear what reasons you have for considering changing from whatever you're driving now to something else.  I'd like to help you clarify what you want fixed, and what you want to change.  I'd like to find out what you like about your current car that you'd want to stay the same in your next one.  I'd like to help you find a solution.

When you have a vehicle problem you're going to get it solved one way or another, to one level or another.  If you let me, I'd like to help you solve it quickly, for the long term.  Just let me know when you're ready to start.

We have an inventory of approximately 300 quality used vehicles.  Check out our website!  www.crossbordervehicle.com    Distance is no problem-- we transport, too!

Jeff The Truck Merchant
Toll-free 1-888-327-6712 or 604-825-8571
jeff@applewood.ca
http://truckmerchant.blogspot.com

Applewood Crossborder Vehicle Sales
19820 Fraser Hwy
Langley, BC V3A 4C9
www.crossbordervehicle.com
Dealer#7889


WARRANTY AND FINANCING AVAILABLE ON ALL VEHICLES!!

Christmas Party

Merry Christmas to all!  We're off to our Christmas Party.  I've been under the weather for two days but the holiday spirit is welling up and my wife and I are on our way.  Feliz Navidad!

2009 Dodge Calibre - SOLD

The Truck Merchant sold a car last night.

I am shocked, sir.  Shocked!

I've pointed out before that I am willing to go to such extremes to serve customers.  In fact, I'm proud of it.  Proud, I say! 

 This is not me.

The fact is that although trucks meet the needs of almost every man, woman and child on the face of the earth, there are those who for one reason or another find themselves in the appalling position of requiring a different kind of vehicle.  Some are world leaders/famous rappers forced by the iron bonds of convention to sail regally through city streets in ostentatious stretch limosines. 

Some are starlets or movie moguls who flit about in sports cars while savoring the flashbulbs of paparazzi. 

 Others resort to rickshaws or jeepneys due to extremes of cultural and economic circumstances.

 

Yesterday a young family whom I've enjoyed dealing with for some time now purchased a lovely 2009 Dodge Calibre.

It proved to be roomy enough for several child seats and thus satisfied the lady of the house.  The gent found the SRT-4 pickup and brakes and sporty handling to meet his need for speed.  And their two strollers fit in the hatchback.  The styling and price were right, and they drove off out of sight into the night.  The whole thing was poetic, really.

This also is not me.

So if you find yourself at an impasse and are forced to countenance the purchase of a non-truck, do not despair.

Remember the monkey:  The Truck Merchant sells cars, too.