One of the very first lessons I learned as a young green-pea car salesman was this...
Not very encouraging words for starting out a new career in car sales. Coming into the auto-sales industry in 2003 I held the common misconception that all car guys were the shysters. What I learned was these assumptions were misunderstood battle wounds of an ongoing battle between getting a "good deal" on a car and making a profit for the dealership (which results in commission for the sales person). I can't help but think of how much time could have been saved, on both sides of the desk, if both parties cut out the deceptive negotiating tactics all together.
In defense of the car business I can state, as a season veteran of the sales floor, that most of all "lies" told in car negotiations are of omission. Both parties are trained to reveal only enough information to plead their case, and through the act of discovery we find there is a little wiggle room, or there is some more money in the budget. Now, there are some cases of lying by commission, but these are the exceptions and not the rule (especially with so much information on the Internet).
So, why do we feel we must "lie" to some degree in negotiations? Speaking in car-sales terms, it could be left over knee-jerk reactions from the unregulated years of pillaging consumers for shabby used cars decades ago. Maybe we feel we have to protect what we have for fear of losing it unjustly. I believe it is because trust is not the first pillar of negotiation and an established foundation is an afterthought in building relationships. If you boil down a car sale transaction we find a person with a need, a dealership with vehicles that can fill that need, and a person trained to facilitate the deal. My response to the repeated question of "am I getting a good deal" is this: If you like the car, and it fits in your budget, and you trust that the people involved have a genuine concern for your needs then yes... you got a good deal.
There are a few ways to guard against deception in negotiations. First and foremost... educate yourself. Know what you are getting in to and be prepared. Knowledge is the key to reducing deception, and knowing all the options prior to negotiations levels the playing field... especially when dealing with a professional (car buyer = novice. car salesman = professional). Second, spend some time building the relationship. The research is in folks... we would rather deal with a live, breathing, thinking person rather than a series of prompts or clicks to get what we want. Get to know who you are dealing with. I can usually tell fairly quickly if a person is genuine or not, if they are more focused on their position than mine, or if I can trust them.
Third, be honest. Honesty has an inherent risk associated with it. Honesty not returned can leave a person vulnerable, and that is no fun for anyone. However, I believe we will be more pleasantly surprised than disappointed when we share honesty with those we enter into negotiations with. Honesty is also closely tied in with trust (there's that word again). And lastly, be willing to concede some ground in order to make a deal. Fair negotiations might very well mean both sides win, and a win-win outcome is good for everyone. Find a common ground and come to an agreement. If the terms can't be met, and a win-win can't be achieved then it is 100% ok to find another solution elsewhere. I have seen too many "good deals" fall apart because the heels are dug in to tight to give a little and make a deal that works for both parties.
As a well-trained and successful salesman I can say that I have had my share of tough negotiations. Whether I am selling a $6,000 play system for someone's backyard, patio furniture, or a $100,000 Mercedes-Benz I have found that being friendly, honest, and sincerely listening for the need is the best way to solve problems. I also have been blessed with great mentors and upstanding individuals who have guided me to be a "professional" salesman. I have also learned to say "No" when need be. I sleep better at night knowing I helped someone and made a little profit than hurt someone and "killed the bear".
I think one of the main reasons I enjoy sales is building relationships. Negotiating is part of my environment, and by following these simple suggestions it can be a mutually rewarding venture.
JP
"All buyers are liars!"
Not very encouraging words for starting out a new career in car sales. Coming into the auto-sales industry in 2003 I held the common misconception that all car guys were the shysters. What I learned was these assumptions were misunderstood battle wounds of an ongoing battle between getting a "good deal" on a car and making a profit for the dealership (which results in commission for the sales person). I can't help but think of how much time could have been saved, on both sides of the desk, if both parties cut out the deceptive negotiating tactics all together.
In defense of the car business I can state, as a season veteran of the sales floor, that most of all "lies" told in car negotiations are of omission. Both parties are trained to reveal only enough information to plead their case, and through the act of discovery we find there is a little wiggle room, or there is some more money in the budget. Now, there are some cases of lying by commission, but these are the exceptions and not the rule (especially with so much information on the Internet).
So, why do we feel we must "lie" to some degree in negotiations? Speaking in car-sales terms, it could be left over knee-jerk reactions from the unregulated years of pillaging consumers for shabby used cars decades ago. Maybe we feel we have to protect what we have for fear of losing it unjustly. I believe it is because trust is not the first pillar of negotiation and an established foundation is an afterthought in building relationships. If you boil down a car sale transaction we find a person with a need, a dealership with vehicles that can fill that need, and a person trained to facilitate the deal. My response to the repeated question of "am I getting a good deal" is this: If you like the car, and it fits in your budget, and you trust that the people involved have a genuine concern for your needs then yes... you got a good deal.
There are a few ways to guard against deception in negotiations. First and foremost... educate yourself. Know what you are getting in to and be prepared. Knowledge is the key to reducing deception, and knowing all the options prior to negotiations levels the playing field... especially when dealing with a professional (car buyer = novice. car salesman = professional). Second, spend some time building the relationship. The research is in folks... we would rather deal with a live, breathing, thinking person rather than a series of prompts or clicks to get what we want. Get to know who you are dealing with. I can usually tell fairly quickly if a person is genuine or not, if they are more focused on their position than mine, or if I can trust them.
Third, be honest. Honesty has an inherent risk associated with it. Honesty not returned can leave a person vulnerable, and that is no fun for anyone. However, I believe we will be more pleasantly surprised than disappointed when we share honesty with those we enter into negotiations with. Honesty is also closely tied in with trust (there's that word again). And lastly, be willing to concede some ground in order to make a deal. Fair negotiations might very well mean both sides win, and a win-win outcome is good for everyone. Find a common ground and come to an agreement. If the terms can't be met, and a win-win can't be achieved then it is 100% ok to find another solution elsewhere. I have seen too many "good deals" fall apart because the heels are dug in to tight to give a little and make a deal that works for both parties.
As a well-trained and successful salesman I can say that I have had my share of tough negotiations. Whether I am selling a $6,000 play system for someone's backyard, patio furniture, or a $100,000 Mercedes-Benz I have found that being friendly, honest, and sincerely listening for the need is the best way to solve problems. I also have been blessed with great mentors and upstanding individuals who have guided me to be a "professional" salesman. I have also learned to say "No" when need be. I sleep better at night knowing I helped someone and made a little profit than hurt someone and "killed the bear".
I think one of the main reasons I enjoy sales is building relationships. Negotiating is part of my environment, and by following these simple suggestions it can be a mutually rewarding venture.
JP
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