With the holiday season fast approaching, I was looking forward to actually taking a slight break from discussion of navigation systems, radar adaptive cruise control, and other hot topics of current automotive design. This season marks a time of year when all things business-like and industrial typically slow with employees heading off to feast in far off regions with family members they have likely not seen since the last run around. Also, the end of the year generally spurs reflection on the accomplishments of the past year when projects and details are wrapped up with thoughts of a new beginning just around the corner.
With that in mind, I was all set to write about the ingenious ways my wife has been able to transform typical thanksgiving leftovers into downright gourmet fare. The remarkable conglomeration of food is more on par with a freshly cooked Chateaubriand than anything scavenged off a picked-over Turkey carcass. And just a I sat down to give away some of her secrets of meuniƩre, I was reminded that the day marked one of the great commercial phenomenon of modern day: Black Friday.
Apparently, my urge to slow down was a bit premature as I was quickly reminded that this bastion of greed, which marks the beginning of the Holiday shopping season, often includes shopping for a new car. There was certainly no shortage of football-interrupting advertisements touting "end of the year" or "holiday" automotive blowouts. But as these types of campaigns have become commonplace throughout the rest of the year, they weren't what tipped me off.
My parents were in town for Thanksgiving and mentioned that they, in fact, were interested in looking at a new car for my mother. Certainly this marked an occasion for me as someone who has spent the better part of the last six months entrenched in the battle that is automotive retail. I had imagined the day when I might again be on the other side of the transaction and could put everything I had learned to the test. I just had no idea it was to come so soon.
My parents had told me what they were looking for several months earlier, so I had already furnished them with all sorts of research resources, both on and off line. By the time we were set to go to the dealer, we all had a pretty good idea of what we were seeking. I had kept an eye on what the cars were going for at the wholesale auctions in case we decided to go the Certified Pre-owned route, and I knew everything about the mark-up in the cars, including the $715 holdback. Finally, I had every conceivable printout from Kelley Blue Book, Edmunds, NADA, even Reader's Digest. The only thing I needed now was a victim.
With a short drive to the local Lexus dealer, the show down was set. I hadn't bothered to call ahead, as I was sure they would simply say they had exactly what we were looking for, just as I was trained to do. When we arrived, I immediately scouted the lot for either the youngest or oldest salesperson I could find. I didn't see anyone who would be particularly easy to deal with, so I chose to let them decide who would be assigned to me. I had dressed down and decided long before we got there that I would keep my current position as a fellow salesman quiet. I opted instead to play the annoying son who accompanies the parents and obviously spends far too much time reading about how people are buying 2005's for $300 over invoice.
We had the whole clan with us: both of my parents, my wife, even the family dog so that we could attack from all sides, if need be. Shortly after we zeroed in on the car we were looking for, however, it became obvious that this was going to be between me and the schmo across the desk. We quickly went from "we do not discount the 2005's at all" to $2400 off and full book value for our trade-in, sight unseen. It was beginning to look like these low prices weren't just myth, but we were stuck at this point, with the dealer still making a considerable profit on a car that wasn't even on the lot yet. I felt like I might be losing control of the negotiation.
At this point, I was ready to get out of there. There was another dealership just a few minutes up the road, at which I had a friend who happened to mention he had just taken in the exact car we were looking for the day before. The exercise was complete; I knew how low these guys would go, and I had accumulated the necessary ammo for the dealership I actually wanted to deal with. But the salesman (and I have to give him some credit for this) went into "last ditch mode" just as I was walking out the door. He pushed for the sale with every word he said, and put the ball back in our court with the token "how much will it take" line. All I wanted to do was thank him for his time and get to the door, but I found myself taking the time to explain why his offer still wouldn't work.
I can see how the sense of urgency salesmen like this one creates can suck many casual shoppers in, but I had been expecting it and had a better option up the road. This salesman had an added problem, though -- a smug attitude that he held during the entire event that would have prevented us from ever actually dealing with him, regardless of the numbers he came up with.
They say that over 90 percent of the time, a potential car purchaser will decide within the first five minutes whether or not he would purchase a car from a dealership's salesperson. It's very clear to me now how that can be.
In the end, we purchased the car from my friend up the street. While his dealership did make me go through a bit of the song and dance again, I was happier leaving just a little bit of money on the table knowing that it would be going to him. More importantly my parents were thrilled, which is certainly the most important thing given that they're the ones who'll own and operate the car.
There's another unwritten rule in the car business that says it's the people who negotiate the deal to the death, nickel and dimeing all the way, asking for the free T-shirts, who are the unhappy ones in the end. These customers always seem to end up back in the dealership with further problems and issues. Not being one of these people is worth something in my book all day long.
The lesson to be learned here is that whatever you do, every once in a while you might want to put yourself on the other side of the fence. See how your competitors are doing it. You might be surprised by what you can learn.


Thats jus how we do it in Lexus Inc. Hehehe
http://ariasettile.net/lexus/
Posted by: lexus man | December 23, 2004 at 11:00 AM
"even the family dog so that we could attack from all sides" - i love it! i imagine you negotiating hard-core while the family dog steps up and urinates on the salesman, thus claiming its territory.
Posted by: creamy | December 06, 2004 at 10:56 AM