David Lowe: 0:00

Buyers shop price, but they buy value. Welcome to Prepare to Win. Today we’re going to talk about the difference. Stay tuned.

Grace Lupoi: 0:18

All right, hi guys, I’m Grace Lupoi and and I’m here with David Lowe, the Automotive Sales Coach, and, like he said, today we’re talking about the difference between price and value, and really those are two big different topics and sometimes we have a hard time separating the two, don’t we?

David Lowe: 0:31

That’s well said. I think a lot of times we think they’re the same thing. Right, price is what you Shop. Yeah, that’s what you shop, and because that’s what you end up paying. Right, that’s what I’m going to pay. And since buyers always concern with never paying more than they have to, right, number two fear. Right, I don’t want to pay more than I have to, so I shop price, but in reality, I buy what fits my lifestyle. We call that value. In reality, I shop price, but I buy what I want. Isn’t that normal? That’s right. So what is the difference? Price is what you pay. Value is what you get for what you pay. So probably, when you go shopping for something, do you do the same thing All the time. Here’s what I want to spend and you end up buying something usually costing more than you set out, because we rarely want to pay what it takes to buy what we want to buy. In fact, when I say rarely for me, it’s never I was. I want to pay here when I find what I want. We know that and if you’ve been joining us and prepared to win, we’ve been really focused on delivering kind of the thinking and the tools. I have had. This discussion, the teaching time about becoming better today than we were yesterday. Preparing to win simply means living with joy, peace and satisfaction and that only comes from healthy pride, right, that self-approved conduct that we find as we constantly seek to improve ourselves. And it’s so cool. So we’re talking about price versus value and whether you’re a shopper or a professional sales consultant, sales manager, these are things that are on our mind and it’s so often we go into dealerships and we see sales consultants and managers can assume with what Price. So the buyer calls and talks price and the salesman talks price back to them and they come to the sales manager, say my buyer is talking this price and the manager says what about this price? And it’s price, price, price, price, price, price. That’s what we’re talking about and what we want to remind everybody today is, although buyers start with price, they end up making a decision based on what they’re getting for their money, which is really value, and but it’s their job. They don’t know how to. I’ve never had a buyer call and say ring, ring, hey, I’m calling to talk about, tell me about the value of this car. You know what I mean. They always talk you got a car, what’s your best price? They don’t know how to ask is this the best car for me? Is this the best car for my money?

Grace Lupoi: 3:15

That’s right, and really it walks right into once again the psychology which we’re big on. That Again, the reason why I love our training so much we go back to here’s what do I already know.

David Lowe: 3:25

Yeah.

Grace Lupoi: 3:25

A buyer’s number two fear, not number one fear. Yeah, number two fear is paying too much. Their first fear is what?

David Lowe: 3:31

Yeah, yeah, maybe, yeah, maybe you can push.

Grace Lupoi: 3:32

That’s the value comes in anyway.

David Lowe: 3:34

That’s it.

Grace Lupoi: 3:34

And because sometimes I think, whether you’re a consultant or any day, any area of your life, and you are actively selling, and they go straight to price. We think to talk price back because we don’t remind ourselves what do I already know.

David Lowe: 3:47

That’s right. And what? Yeah, that’s so true. And, by the way, isn’t it probably true that when buyers are uncertain, is this the right product for me, they might hide that uncertainty in price questions, like had a customer come and say I’ve gotten four prices already from four different dealers on the same car and I call timeout. Maybe it’s not the price that’s a problem here, right? Maybe it’s the value. It’s, because obviously, if you’ve been the four dealers, you’ve gotten four good prices. Right, we’re all price, we’re competitive, and so you can’t go to four places without getting a good price. And yet she still hand-bought, right. So what does that mean? Maybe she’s shopping the wrong product, the car’s not doing the values not there, for you know what I mean. And we have it all. The time where people will keep hiding their decision on what to buy Behind the price is too much. It’s funny how, as soon as we find what we want, price becomes secondary. It’s always a alright. So let’s just talk about a few of the ways so buyers can talk price. A lot of different ways, like what’s your best price? I was online and I saw a book price your competitors, price right. Right, here’s what we decided. We want to spend price. They can Put price in terms of payments, price in terms of trade, discount amount, finance. There’s a million ways to just keep talking money. So when we talk about price what you pay we’re really talking about money topics, and that’s cool and that’s important. That’s part of the whole financial package, isn’t it? But price alone doesn’t mean much. It’s a hundred dollars, a good deal. Well, what am I getting? Oh, right, right. And so we always say, when our buyer talks price, we want to respond with value. What are you getting from value? What does it mean? What am I get? So let’s talk in terms of cars. When you’re looking at a car, how do you determine? Is this the car? That’s about my lifestyle. What do you look at? Do you look at the equipment?

Grace Lupoi: 6:06

Absolutely.

David Lowe: 6:06

I do Well what else do you look at? What else do you look at what else? On a used car, what would you look at, say is this a good value?

Grace Lupoi: 6:11

How does it? How does the performance? Okay, do you like the way that I need it to drive?

David Lowe: 6:15

Okay, there you go. That’s a big value. Do I like the way it handles right? What else?

Grace Lupoi: 6:20

am I comfortable, comfortable in?

David Lowe: 6:21

the car? Yeah, does it? Does that have the features I want? How about, if it’s a used car, going backwards and saying, what’s the history on this car? I don’t want to buy somebody else’s problem. Was it taking care of what’s the car need? If I bought it, what would I have to do to the car? And maybe what was done before I got it? What’s been done? Uh, color could be valuable. We find that all the time the same car at an auction will go for less. Like I used to stock when I had budget, I used to stock the nicest cars and and, um, you know, you could buy. In the day when I was doing that, big torsos were big. I know they’re not around any, but torsos were big and you could buy a white tors with tan interior for $1,000 less Than a black one with gray interior right or a red one right. So I’d always stock one of those price leaders because they were cheaper. People’d see them online, they’d shop price, but they came in and they bought value. They bought the car that they wanted, right? Uh, as recently as running the vw store, we would go to enterprise and buy some high mile Jedis, and we wouldn’t do much too, and we’d buy the hubcap jettah with no rough 40 some thousand miles, didn’t do it quick, clean them up, you change the oil and put them out there and that would be our price leader. You know, blank 999, right? So people go online Well, that’s a really good price. And then they would come in. They go Well, I don’t really like this car and most of the jettas we sold were $4,000 more People would like what about that? That’s one of our better than new jettos. Why? Because it’s a certified. Let me show it to you, right. And so people, they would shop price and often come in on price, but they eventually bought what they wanted to right Now. So price what I pay, value what I get. So salespeople, professionals, sales sales professionals, managers, salespeople, whoever’s talking to buyers out there, no matter what you’re selling, it doesn’t matter. The price is important, right, and what you’re getting for the price is called value, and that’s actually more important. That’ll make your buying decision. Does that make sense? Now, if I can only afford so much? That’s true, but really we find that’s this. Many people are making a decision based on affordability. It really comes down to I don’t wanna pay more than I have to to get what I want.

Grace Lupoi: 8:49

Right, and I think some people will try to argue with that and we can even flip the scripts. How about buying a TV? How about buying a jacket, buying a pair of shoes? It’s always the same.

David Lowe: 8:59

It’s the same thing.

Grace Lupoi: 8:59

That doesn’t change. And then once they see that, oh, I see that value is gonna outweigh price. Most times when I’m buying a new TV we’ll let that back to the car and it’s similar.

David Lowe: 9:09

That’s right.

Grace Lupoi: 9:10

It’s the exact same.

David Lowe: 9:11

Yeah, so I think that. And then when you look up on the wall and you see the TV you bought because it was the cheapest and you don’t like it you remind it every day of the bad decision you make. I really think our past mistakes buying is what makes us scared of buying the wrong product, right? And I think that naturally everybody’s sale, sale, price, price, price, best buy everybody’s like you’re talking to, they’re yelling price and so, as consumers, we respond with price and it’s normal and it’s cool. Don’t worry, if I’m selling cars and a customer talks about price, I’m gonna tell them I get it. Price is really important. It is to me right. Empathy I hear you and we talked many times during these episodes about the power of empathy, absorbing the emotion of price, and then we can use logic to move them to and redirect them back to what that whole value, that whole package. So I think, as you’re looking to improve your serve, to be better today than yesterday, you might wanna say what am I doing? Am I spending most of my time talking about money? Or I’m spending a good amount of time reminding buyers of what they’re getting for their money, and I have to do it in an empathetic way. It can’t be well, there’s people who say price, yeah, well, the cheapest one doesn’t mean it’s the best, right? I don’t want to start an argument, so we have to be skillful with our words. We don’t want to bludgeon them. Like you know, like that six foot tall, you know sixth grader, the bully on the playground, that’s not who we are. We’re. We’re supposed to be craftsmen, surgeons, surgeons, right, and we want to have a relationship for life. So, as people talk, money we absorb. That’s so important. It is to me, and it’s really not just what I pay but what I’m getting when I pay. That’s really important, right, let’s kind of walk through and make sure that this is something that you that’s really going to serve you well, that it fits your lifestyle, it’s going to make your life better. If it is, I’m confident we can work out the whole financial package, isn’t that true? So, price versus value, ask yourself and observe people around you. Which one am I spending more time focused on? Do I have the skill sets needed to show empathy to price concerns, price objections, price questions, and do I have the skill to turn that around using logic and redirect to focus our buyer back to value Because that’s really worth it? We’re going to talk more about this because it’s interwoven, right? Hopefully, if you’ve been joining us and I hope you have, and I hope you continue to join us and Grace is always telling you like us follow us right, and it’s true, but as you continue to go, I think you’re going to see how everything we do is interlocked, isn’t it? So yeah right now, in the playbook, the dealership playbook, we’re creating a course and in that course it’s the psychology to sale. We’re breaking down every question. See, nothing we do is by accident. We’re skilled. We want our buyer to feel comfortable and confident, they’re buying the right car from the right place, right, and that they’re getting the right deal. We want them to leave satisfied, right, and we don’t believe that the lowest price is what satisfies people. In fact, from coast to coast, I say to salespeople who’s your happiest customers? I want to pay the least, I want to pay the most, it doesn’t matter where I’m at. They always say that’s true. So if that’s true, I want to eliminate the buyer’s fear by building so much value that the price makes sense right, and to do that it’s the whole process, isn’t it? And so relationship and trust does that matter?

Grace Lupoi: 12:57

It really matters.

David Lowe: 12:58

And so how we respond to price questions, price concerns, price objections matters, because that builds relationship or destroys it. Right, I know that you could bully your way into car deals. You can. You could push and push. It’s happening all over. There’s a lot of prominent trainers that kind of teach you how to bully them. You got to put them in their play. I think that’s baloney. I think this week, I think it’s amateurs and yeah, if that’s all you got, that’s all you got. But I think you deserve the right to be better today than yesterday, don’t you? And why not develop the skill sets that make you feel proud of what you’re doing, how you do it, not just get your results, but make you feel proud of how you get everything’s interwoven. Value and price are interwoven, and relationship and trust is something that we can use and build, as we discussed it to right.

Grace Lupoi: 13:47

I like it Cool.

David Lowe: 13:48

So we’re going to talk more about that. Thank you for joining us. We really appreciate it. Right, Grace, Absolutely, and we hope that it’s been a benefit to you. And this week, as you go out there, remember you’re worth it. What you do matters and how you do it matters, and it’s really important that your thinking is right this week. Right, An attitude of gratitude as you go out there, because your attitude, your right, your thinking is contagious and it’s going to infect your buyer. So let’s focus on the things that are good in our life, the things that are right in our life, and let’s focus on now value instead of the negative of price. The positive of this is what you’re getting for what you’re paying. Until next time, I’m David Lowe.

Grace Lupoi: 14:32

I’m Grace Lupoi.

David Lowe: 14:33

Good selling.