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by WalterBright 1334 days ago
> some people think they deserve to pay less than their neighbor did blows my mind still to this day

Deserve has nothing to do with it. It's about both parties negotiating for the best price.

That said, there may be very good reasons not to push too hard. You might want to do business with the other party in the future. You might want a good review on Google. You might not want to take advantage of an elderly person or an inexperienced wide-eyed kid.

But any party going on about what they "deserve" is not going to earn sympathy.

BTW, did you ever watch "King of Cars", a reality TV show at a car dealership? I found it both entertaining and instructive.

1 comments

I haven't seen the show unfortunately.

My basic summary of the entire absurdity of the common tactic of "what's the best price you can do?" is as follows..

The best price is a vague concept depending on where we want to draw the line.

Best price I can do and keep my boss happy with my performance?

Best price I can do if I want to be below average at this company?

Best price I can do if I want to ask for a personal favor from my boss to allow me to heavily discount this car beyond established metrics we have and sell it this one time?

Best price I can do if I want to be yelled at tomorrow morning?

Best price I can do if I want both my boss and I to be yelled at tomorrow?

Best price I can do if I want my boss to negatively impact his career by the owner seeing him make deals like this too often?

Best price I can do if I want to get myself or my boss fired the next day? I could probably somehow secretly sell a car $10k under what I should... Once.

Where do we stop? Some nice people pay MSRP. Some people ask for a gesture of a discount. Some people ask for what discount is fair to market and we'd be ok with, and take it. Some people want below market, and we try to stop it if the car is in demand or we have enough volume. Some people want prices so low they'd fall into the "negatively impact the salesperson or teams career". Sometimes we even take those, but it's always a calculation between taking a below market average offer or waiting for one of the earlier described people to walk in.

I happened to know beforehand that the car had been on the lot a while, and the dealer probably wanted to be rid of it.

Unsold cars on the lot are burning cash, as they're there on borrowed money.

BTW, he had to get the manager's signoff on the final price, so I'm sure he wasn't getting fired for it. A savvy manager isn't going to let a salesman underprice a car to sell to his buddy.

You mention a lot of considerations, all perfectly valid. That's what makes the game interesting and fun :-) I'm sure the salesmen also size of the customer based on his clothes, the car he arrived in, his demeanor, etc. I remember shopping for a new car long ago, arriving at the dealer with my usual worn out jeans. None of the salesmen would talk to me. So I bought the car from the dealer's rival. These days, Seattle is full of millionaires wearing jeans, and the salesmen know that, and don't make that mistake.

Unless there's value in it to me, I generally dress down for anything where I'm paying money.

My thinking? If I'm polite and verbally confirm that I'm good for the amount and the salesperson treats me poorly? Not someone I'd want to do business with anyway.

Actions >> appearance

I'm from California where ignoring someone for the way they dress doesn't really happen often. And honestly, any car salesman that's been in it for more than a month has seen a blue collar worker come buy a $80k diesel pickup or escalade for their wife.

What we do screen for a bit is basically time wasters. It is possible to be accidentally picked up in this net, and then say "they sure missed out, I bought a car at the next place". That's unfortunate for the salesperson sure, but you're ignoring the countless hours saved by quickly dismissing the true time wasters.

I sold cars and was very good at it (better than top 1%) and would sometimes get in a mood when I would ignore intuition for a few weeks and just do an amazing job with everyone. Doing an amazing job works well, and you can get people to buy a car who swear they stopped with ZERO intention of actually buying a car that month even, very often. But you almost never even get CLOSE to selling a car to someone you have a bad vibe about, even if you go all in.

If you're good at car sales, you have more people to follow up with and do a good job with than you have time. I sold 34 cars a month average over years. National average is 11. Eventually you have to trust your judgement to save yourself 10+ hours a week, even if once a month it costs you a sale.

Fair enough. I have another anecdote about this. Another friend went into a Ford dealer to buy a truck with all cash. The salesmen just ignored him, chatting around the coffee machine. He came up to them, and pulled out the roll of cash, saying he came there to buy a truck and "I'm going to the other Ford dealer." The salesmen rushed him, but he said "too late".

He walked out, went to the other Ford dealer, and drove out with a new truck.

I can see not wasting time if there are many customers in the place, of course you triage them. But if you're chatting around the coffee machine because there are no customers in the showroom ... !