Dealer Panel: End Price Wars by Exchanging Commitments - Tire Review Magazine

Dealer Panel: End Price Wars by Exchanging Commitments

Dealers share how they've moved away from focusing on price in customer conversations in a panel hosted by Dan Molloy, inventor of The Language Of Commitment and Power Sales Training.

Most of the time when customers call a repair shop to ask about price, they are really calling to solve a vehicle problem.

“They are calling for help; they just don’t know how to ask, so they ask for price,” said Dan Molloy, inventor of The Language Of Commitment and Power Sales Training, who hosted a dealer panel webinar May 6 to help tire dealers’ service advisors change the narrative with price callers to one of trust and commitment.

About 90% of the time, service advisors are quoting prices over the phone, said Molloy, because it’s the easy answer with the path of least resistance—but he says that doesn’t help boost closing percentages.

For commerce to occur, the seller and the customer must exchange commitments, explained Molloy. “Price is never the lead issue. “They ask about it, but it is never the No. 1 issue if their car is not running.”

While the closing percentage on oil changes is around 90% because customers make a commitment to come in the same day, for tires, it’s significantly lower, Molloy says. “People don’t have to pull the trigger on tires the same day; they have a week or two, so it requires more work to close the deal,” added Molloy, who noted that when customers call about tires they make a commitment to come in to buy them the same day 25-27% of the time.

Neal Maier, a former dealer in the Charlotte market and now a partner in 3VE Marketing, an advertising agency that specializes in digital marketing for tire dealers, said that one way to encourage more commerce with your business is to differentiate it.

“While the $14.95 oil change is the quick lever to pull to fill your bays, it sets your differentiator as a low-price option,” he explained. Knowing that will bring in price shoppers, he advised to instead focus on what makes your dealership special, and then tailor your marketing messages around those differentiators.

Jeff Tucker, owner of three Triple T Tire stores in Dyersburg, Tennessee, said “it’s not about price, but it could be about the money,” realizing that customers who lead a conversation with price typically need help with financing the repairs. After years of dealing with this scenario in his own business, Tucker said he invented the TAPPS-Pay program, a financing and payment plan app that simultaneously sends a customer’s financing application to multiple lenders, to help service advisors handle the money conversation with customers at the beginning of the call.

Danny Smith, owner of Same Day Automotive, who operates six stores in the Tulsa, Oklahoma, market, shared his philosophy on running his business.

“It’s about the person, not about the car… you focus on the problem and take care of the person,” Smith said. “That requires a passion and a piece of your heart to do the right thing. Not everyone is wired that way. Once I took the focus away from the money… my business exploded.”

Smith said that in these trying times, he realizes that businesses everywhere are struggling. And, while other dealerships in his area are off to the tune of more than 40%, his dealership is down only 8%. He credits that to laying the foundation for a commitment to taking care of people.

You May Also Like

SRNA promotes director of product planning for Falken PLT tires

With more than two decades of experience in the tire industry, Johnson is now coming up on eight years with SRNA.

Tsuyoshi-Johnson-SRNA

Sumitomo Rubber North America (SRNA), a subsidiary of Sumitomo Rubber Industries, has promoted Tsuyoshi “TJ” Johnson to director of product planning for Falken passenger car and light truck tires.

Johnson graduated from the University of Texas at Austin with a B.S. in mechanical engineering and began his career in outdoor tire testing, before spending several years in the original equipment business in both technical and account management roles. With more than two decades of experience in the tire industry, Johnson is now coming up on eight years with SRNA.

Ascenso Tires North America finds new president

Thomas Clark brings with him a three-decade-long career, marked by progressive responsibilities at companies such as Michelin and Carlstar Group.

Ascenso-Thomas-Clark
Turbo Wholesale Tires partners with LA Rams’s Kyren Williams

The All-Pro NFL running back will appear in promotional print and social media campaigns for Turbo Wholesale Tires.

turboCombo
VIP Tires & Service donates $275,000 to Make-A-Wish in 2023

Last year’s donation brings VIP’s total contribution to Make-A-Wish in recent years to over $1.275 million.

MAW-VIP-Tires-1400
Wes Samperio named Dunlop Motorcycle Tires’ product planning manager

Samperio has held several positions throughout his eleven years with SRNA, from warehouse operations to customer service to sales.

wes-samperio-dunlop-motorcycle-tires

Other Posts

SRNA names national sales manager (West) for commercial truck tires

Sam Williams has been with SRNA since 2016, most recently working as a senior strategic account manager.

Sam-Williams-SRNA-1400
Plews & Edelmann launches factory-direct shipping program

The factory-direct program is currently available for Edelmann power steering hoses and provides an alternative to off-shore DI Programs.

Pirelli earns CDP’s highest A rating for climate action

The “A” rating was awarded to 346 companies out of the more than 21,000.

award-stock
Nokian Tyres partners with tire recycling JV

The joint venture plans to recycle up to one million tons of end-of-life tires annually by 2030.

Nokian-Tyres-Tire-Recycling-JV-1400