All good points, but why should the sales people be selling the service dept’s CPL? Ive talked to a few seasoned manager that have tried selling the recon, and they all said the same thing. Customer will buy the car at the low advertised price if you include ALL the recommended work. I agree training and changing your approach and thinking would have to change–but ultimately, why should the sales dept be selling your hours per RO. WII-FM is a lost sale because the car is not recon’d and the customer walks. That is the challenge in my super competetive market. When I tell you I can throw a stone and hit 7 stores, Im not kidding. As I type this, Im staring at Mazda/Mitsu/VW/Infiniti/Subaru/Volvo/Audi stores. On top of this, I have BMW/MBenz/Toyota/Lexus/Jaguar/LandRover/Chrysler/Jeep/Cadillac/Hummer/Hyundai within 2 miles. 2 Miles!! Not sure if anyone else outside my market has fierce competetion like this market.

-John Creran

All good points, but why should the sales people be selling the service dept’s CPL? Ive talked to a few seasoned manager that have tried selling the recon, and they all said the same thing. Customer will buy the car at the low advertised price if you include ALL the recommended work. I agree training and changing your approach and thinking would have to change–but ultimately, why should the sales dept be selling your hours per RO. WII-FM is a lost sale because the car is not recon’d and the customer walks. That is the challenge in my super competetive market. When I tell you I can throw a stone and hit 7 stores, Im not kidding. As I type this, Im staring at Mazda/Mitsu/VW/Infiniti/Subaru/Volvo/Audi stores. On top of this, I have BMW/MBenz/Toyota/Lexus/Jaguar/LandRover/Chrysler/Jeep/Cadillac/Hummer/Hyundai within 2 miles. 2 Miles!! Not sure if anyone else outside my market has fierce competetion like this market.

-John Creran

In Dale’s scenerio, you’ve listed your unit on all of the 3rd party classified sites without Recon and list the recon seperately. The low price makes the phone ring (a lot more), the sales rep now has can work with the shopper to sell your service facility vs a “guy” down the street. Customer does not have to fix everything.

Build the presentation to include tools needed for the Service Dept winning over the shopper. Have the Svc dept issue these “tools” to help the reps close more deals (keep the money in-house). Tools can be any kind of promo item to let them know they’re in the right place (i.e. free GPS it pruchace includes your service)

Now your selling the service department. Can you see this improving your Service Department business? This is a great environment to sell service contracts too.

It’ll take training and a brave leap into the dark to pull it off.

In Dale’s scenerio, you’ve listed your unit on all of the 3rd party classified sites without Recon and list the recon seperately. The low price makes the phone ring (a lot more), the sales rep now has can work with the shopper to sell your service facility vs a “guy” down the street. Customer does not have to fix everything.

Build the presentation to include tools needed for the Service Dept winning over the shopper. Have the Svc dept issue these “tools” to help the reps close more deals (keep the money in-house). Tools can be any kind of promo item to let them know they’re in the right place (i.e. free GPS it pruchace includes your service)

Now your selling the service department. Can you see this improving your Service Department business? This is a great environment to sell service contracts too.

It’ll take training and a brave leap into the dark to pull it off.

I’m a dealer who believes in reconing our cars to the “nines”. However, I’m always interested in making our operation more effective and more competitive in today’s market place. My gut tells me that customers would try to negotiate the “pre-priced” reconditioning costs…”if you throw it in on the deal…we’ll take it”. In my opinion many of our customers have come to expect quality used vehicles to stand tall and they’ll pay for it! A good salesperson with an exceptional walk around presentation, can use the reconditioning process a the difference maker not deal breaker.

Jeff

I’m a dealer who believes in reconing our cars to the “nines”. However, I’m always interested in making our operation more effective and more competitive in today’s market place. My gut tells me that customers would try to negotiate the “pre-priced” reconditioning costs…”if you throw it in on the deal…we’ll take it”. In my opinion many of our customers have come to expect quality used vehicles to stand tall and they’ll pay for it! A good salesperson with an exceptional walk around presentation, can use the reconditioning process a the difference maker not deal breaker.

Jeff

I read a few months back a thread about a dealer NOT doing the Recon, but instead offering it to the buyer at time of sale. Im in the New York/New Jersey Metro market. I’ve been questioning Recon practices constantly as we all do. My fear is most buyers walking to another store (dozens within 2 miles) to buy a traditionally recon’d car. Since you brought it up again, I will give it a try on a few cars and test the waters.

For those dealers reading this, are most of your Pre-Owned departments paying full retail on labor rate? I saw the prior thread on CarMax, but I read a response that contridicted and claimed their re-con bills are almost as high as a traditional franchise store.

-John Creran

I read a few months back a thread about a dealer NOT doing the Recon, but instead offering it to the buyer at time of sale. Im in the New York/New Jersey Metro market. I’ve been questioning Recon practices constantly as we all do. My fear is most buyers walking to another store (dozens within 2 miles) to buy a traditionally recon’d car. Since you brought it up again, I will give it a try on a few cars and test the waters.

For those dealers reading this, are most of your Pre-Owned departments paying full retail on labor rate? I saw the prior thread on CarMax, but I read a response that contridicted and claimed their re-con bills are almost as high as a traditional franchise store.

-John Creran