negotiating with auto dealers

RAB Radio Training AcademyRAB Radio Training Academy

Negotiating with Auto Dealers

Ploys, Dirty Tricks, And Sneaky Stuff Auto Dealers Do To Media Reps

John PotterVP/Director RAB Radio Training Academy

jpotter@rab.com

Negotiation

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• Dealers are well practiced at negotiating

• They have developed techniques with customers

• They use these techniques when making purchases of advertising

Negotiation: A Way of Life

Negotiation

Ploys, Dirty Tricks, And Sneaky Stuff Auto Dealers Do To Media Reps

RAB Radio Training Academy

To come to agreement…

Definition: Negotiation

Negotiation

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Determine the situation– Selling

“The seller wants to sell more than the buyer wants to buy”

– Negotiating“The buyer wants to buy as

much as the seller wants to sell”

First Step

Negotiation

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Determine optionsExercise: Your rate for mornings is $100. The client wants to pay $70. What do you say?

– Give and Take– Quid Pro Quo– Trade! Never give a

concession without getting something in return.

– Get everything on the table before any concessions

– Lock-downNegotiation

Second Step

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• Time is power– Creates stress– Causes mistakes in

judgment– Slow down

• Ask questions• Take a break

• Information is power– Dealers share little

information (true information)

– Gather information in advance Negotiation

Principles: Time and Information

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• Maintain the appearance of neutrality

• Both parties must feel satisfied

• Calm, friendly, and smile• Win-win

Negotiation

Principle: Neutrality

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• Always best to deal with the decision maker

• More important than ever in negotiation

• Hidden decision-makers start at your already low negotiated deal

Negotiation

Principle: Decision Maker ONLY

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Herb Cohen: – “Care”– “But not that much.”

• Shows we are at the bottom

Negotiation

Principle: Be Prepared To Walk

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• Once our goal is accomplished, leave

• Always let them feel they won

Negotiation

Principle: Let Them Win

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Principle: Be Prepared

Negotiation

RAB Radio Training Academy

• Big bait• Escalation• Crunch (time crunch)• Cherry pick• Deliver garbage• Change the pace• Nibble• Flinch• Good guy/bad guy

Negotiation

Dealer Negotiating Tactics

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Exercise: Case Study

Trader Bud’s

Negotiation

RAB Radio Training Academy

Exercise: Case Study

Dealin’ Dave

Negotiation