Stay alert for risky sales tactics that will backfire

Money Bizwiz Team
4 Min Read

As an Entrepreneur contributor, I must say that the following story is truly entertaining and insightful. Picture this: my daughter, along with her boyfriend, went to a renowned car dealership in search of a pre-owned vehicle. Despite altering the figures to maintain her financial privacy, the essence of the story remains.

The dealership initially quoted a price of $26,000 “all in” for the car, whereas my daughter was firm on paying a maximum of $20,000. This led to an intense negotiation process. After some back and forth, the salesperson made an effort and reduced the price to $25,000. However, there was still a significant gap to bridge, prompting him to consult with his manager for further strategies.

After a brief wait, the salesperson and manager returned, emphasizing that $25,000 was already a generous offer, well below the MSRP, and the deal was quite tight for them. The manager then dramatically presented a revised figure of $23,995, labeling it as the “best possible price” and stamped it with a red ‘FINAL.’ However, my daughter calmly declined the offer, leading to a surprising counteroffer of $22,500 within seconds.

This amusing incident made me ponder upon the various sales tactics and psychology at play. Here are some key takeaways:

Playing the waiting game

The manager utilized time as a strategic element in the negotiation process, aiming to wear my daughter down by prolonging the discussion. While time constraints can be effective, overdoing it may backfire.

Closing the deal by changing the sales lineup

Introducing a new dynamic by involving a manager or higher authority during negotiations can offer fresh perspectives and opportunities to seal the deal.

Proposing your best and final offer

The notion of using a “FINAL” stamp to create a fear of missing out effect and convey seriousness is a clever psychological tactic. However, it is crucial to honor such declarations to maintain credibility.

While the dealership implemented some smart tactics, they faltered in a few areas:

Trying a shutdown move too soon

The manager’s abrupt approach without building rapport or understanding my daughter’s needs came off as too aggressive. Establishing a connection and discussing product value is vital for successful sales.

Putting an out-of-reach offer on the table

The manager’s aggressive close without considering my daughter’s budget deterred the sale. Understanding the customer’s limits before making an offer is essential for successful negotiation.

Saying your offer is “final” when it’s not

While presenting a “final” offer can be effective, it is crucial to stand by it or provide additional value if adjustments are required to maintain trust and credibility.

Sales is indeed an art that requires a delicate balance of strategies, transparency, and integrity. The big red stamp may seem enticing, but the wise choice lies in utilizing it judiciously. Remember, credibility is key in all successful sales endeavors.

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