I don’t think so. In the past two months I have purchased or been involved in the purchase of three new cars. It seems like auto dealers operate (or at least think they operate) in a dimension where basic principles of consumer behavior do not exist. For an industry that is reported to be struggling, they sure don’t seem to be too concerned about their customers.
Given that my tax money has gone to help some auto manufactures, I thought it was my civic and patriotic duty to try to provide some support. So, for those dealers that haven’t had time to read up on consumer behavior and expectations in the 21st century, I’ve compiled a few quick lessons. I hope they help.
Consumers have access to information now. I’m not sure if you’ve checked out the internet, but there’s all sorts of cool stuff on it, including the invoice price of your cars. Most people take MSRP about as seriously as the first price given for the six piece knife set on an infomercial. I do applaud you for applying good psychology research. Starting with the MSRP is called “anchoring”. It provides a baseline in my brain from which I decide whether the deal is good or bad. Because the baseline is the anchor, I am more likely to accept a price that is closer to the original number. However, here’s the problem. When I walk in the door (or call or email), I’ve already anchored myself on the invoice price. I have two prices in mind: the absolute highest price I’m willing to pay and the price that, if offered, will get me to commit to the purchase on the spot. So, how about if we just start with those numbers and you can quickly let me know where you stand. I won’t think badly of you if you believe that it’s not in your interest to meet those prices. But I will think badly if you make me play some long drawn out game to find that out
Speaking of walking in the door, if I don’t do that, assume that I’m not really looking for a conversation or relationship. I’m sure that you are very nice, but I’m very busy. Whatever choice I made in how I contacted you, I did so for a reason. I’ll let you know when I want to interact in a different way. Until then, assume that the channel I chose is the channel I want to use. People exchange information and conduct transactions electronically now. You can do that too. You might want to check out this cool website called Amazon.com. People can go there, get a price for the product they want, and can buy it without ever talking to someone. If I ask you for the price of something, how about if you just send me a note back telling me what that is.
And when I say I am looking for a price for “something”, I actually mean the thing I want. Remember that internet thing I told you about? It has a lot of information about your cars. I can learn about the various trim levels, available options, all sorts of cool stuff. So, when I tell you that I want your base model in electric red with the entertainment and convenience packages, it’s pretty safe to assume that I actually want that. I’m not looking for your limited edition model with the deluxe leather seating and driver side massage chair – if I did, I would have told you that. I did look at those options but already decided that they weren’t important to me or that they didn’t fit my budget. You aren’t really helping me when you tell me to give you a call so we can discuss some alternatives that you have available. So, when you do give me the price, please make sure it’s for the product that I actually requested.
Yes – I am asking you for a price because I’m shopping around. I’m used to being able to shop around for most things. I typically go to this really cool mall called “the entire world.” I get to compare prices from pretty much anyone (with electricity and internet access) who wants to sell me the product. I realize that I can’t buy my car from Malaysia. But, with a few clicks of my mouse I can find all of the dealers within a certain range of my house. I’m going to shop and compare. After all, I’m doing it at my computer and it costs me just about nothing in time or effort. I understand that you don’t want me to, but you really don’t have a choice. Consumers have a lot more control than we used to and we get sort of cranky when you try to take that from us. If I believe that you as trying to strip control from me, I’m walking.
Make the process simple, fast, and transparent. I’m pretty impatient these days. I really don’t like to wait to get information and I especially hate it when I have to wait for my purchase. Did you know that I can purchase a book from a company out of state and actually start reading it within a minute because it gets wirelessly downloaded to my ebook reader? Lots of stuff is like that now. I’m getting used to it and I think I like it.
So when I do finally come in and you have me sit around at a desk for 10 minutes while you check on the final price with your manager, I get annoyed. First, I thought we agreed on a price. When I order stuff on-line and hit the “purchase” button the deal is finalized. I don’t get a little pop-up window that says they need to check with their manager or that they forgot to include the price of the box. This is true even if we are negotiating the price in person. When you do the “manager” thing, I know you are just stalling (believe it or not, no one actually believes that you are in some heated debate with your manager working to get me the best price) Remember that control thing I talked about? I really don’t like being played.
OK, but enough about my reaction. There is something else that you really need to know. I’m not sitting there passively nor am I reading the pretty color brochure that you left me (remember, I already got all of the information I needed before I even walked in the door). See, I have this cool little thing called a cellphone. And, it’s not like the old fashion kinds of phones. It connects me to the internet. That means that I’m not limited to just the information that you make available to me while I am waiting. I’m checking to see if any of the emails that I sent to your competitors have come in. I’m double checking to see if any new rebate or incentive programs are available. I’m checking into financing options at other places. The bottom line is that whatever I am doing, it is not helping you. There might have been a time when prolonging the process worked to your advantage. Not anymore. The longer it takes, the more annoyed I get and the more time I have to gather even more information to use as leverage against you. (by the way, this is true on-line as well – each email that you send me with questions instead of answers allows me to get more answers from somewhere else). The faster you get me to a point where I can make a decision, the more likely it is that the decision will go in your favor (assuming you give me a good price). And, if it’s not going to go in your favor, the faster you can move on to work with someone else. See, we both win.
One final thing on speed, if you leave me too long and I really get bored or aggravated, I’m going to start Twittering or blogging to all of my friends. And guess what I’m going to talk about? No, it’s not going to be about your five star service or coffee in the customer lounge. It’s going to be about how annoying it is that I am sitting in a car dealership. But don’t worry, I’ll mention your name, you’ll get all of the credit and word of mouth that you deserve.
Be honest. OK, that’s not really a new expectation but it’s always worth mentioning. I’m sure that you would love to get me a car for $2000 less than all of your competitors. But remember, I’m not buying the quote, I’m buying a car. Don’t quote me prices on products that you don’t have. I’m not used to that anymore. If one company doesn’t have what I need, I move on to the next one. Giving me a price and then later telling me that you’ll have to find the car only disrupts my process of moving on, it doesn’t stop it.
I hope this brief summary of customer expectations helps. The world is changing rapidly. I know it’s hard to keep up.
Chief: Great post. I think everybody who’s car shopping should print out a copy and present it to any car salesperson that approaches, saying something like, ‘if you want to do business with, read this first’!!!
As a woman (and someone who dreams of an alternate career as an Indy 500 driver), I purchased a demonically fast $75k car a few years ago. In that vein, I would propose adding a section that women can present, something along the following lines:
“Perhaps you have noticed that I am a woman. Now, I couldn’t care less about your personal opinions about women, what your wife or girlfriend or “ladies” like in a car, or your gender politics more generally. I may or not be in a relationship with a man. That is none of your business.
“Don’t call me Honey or Sweetie. Don’t call me maam or refer to me as a lady. Call me by my first name or Ms _____.
What you should care about it that I have my own source of income, an excellent credit rating, and that I am ready to spend money. I also have enough knowledge of the internal combustion engine to know what I want.
“It’s your job to make sure that you attend to my wishes. If I sense that you condescend to me in any way, I will simply walk out of this dealership and tell every woman I know to avoid doing business with you.
“If I am here with a man, do not address him. Do not look at him. Do not joke with him. If you do, I will leave, but not before letting you know that you are an antediluvian representative of your species.
“Thank you very much.”
Too harsh??? It worked for me! But I didn’t write it down–I said it in a matter-of-fact way. Believe it or not, I still keep in touch with the guy who sold me my car.
Wow. Great point. I can’t even imagine how the process plays out for a woman. I hope people will take your advice to heart and keep these dealers in their place!