Not every dealership has a “Closer.” But just in case you find yourself sitting across from one, you might want to get a feel for their role in a dealership.
First off, you probably won’t know who this person is. Closers aren’t likely to introduce themselves as such, but rather as the Manager. Or, your salesman may introduce him as his manager. Make no mistake though. Often, these people disguised as managers are highly polished and experienced Closers. And you’re more likely to find them in larger dealerships. In this article, you’ll learn why dealers have Closers, what they do, and how to best deal with them.
Why do dealerships have Closers?
Dealership Closers improve manageability: Imagine you’re a dealer with 50+ salesmen, and it’s a busy Saturday. Do you really want a line of salesmen crowded into the sales office trying to get numbers? Just using a few Closers, going back and forth, keeps things much more organized.
Dealership Closers enable communication: Salesmen can come and go, and some have more experience than others. A deal can quickly go sour if a greener salesman attempts to discuss figures or get into more technical discussions on leasing or rate tiers relative to your credit. By using a Closer, dealers eliminate miscommunications and ensure that the person talking to a customer has a suitable knowledge base.
Dealership Closers bring more gross profit: Closers are highly skilled with working numbers. An eager salesman, overly anxious for a sale, may be too quick to drop the price or may have made overtures on the lot to get you in the store. A Closer has no emotional connection with you. He hasn’t been showing you cars for the last two hours or following up with you after a store visit to get you back in. So, by keeping the negotiating functions in the Closer’s realm, a dealer can hold more profit.
What do Dealership Closers do inside a dealership?
Aside from the benefits listed above, a Closer helps the dealership make money in three ways:1.) By holding firm on a price; 2.) By increasing gross profit through interest rates, accessories, and other aftermarket products such as an extended warranty; and 3.) By ensuring that deals actually close.
A Closer can also quickly and accurately ascertain any important potential deal-breakers. When a customer comes in with some burning hot button, a good Closer will draw this out and include it in his negotiations. Here are a few common hot-button issues:
1. Price
2. Rate
3. Payment
4. Trade-in Value
For example, if a customer demands a certain value for their trade-in, a good Closer will quickly pick up on this and work with the Desk Manager to over-allow on the trade and make up this over-allowance on your price and/or interest rate. Often, a deal is more about illusion than reality, and Closers are professionals in making bad deals look good – and making those deals now. To a Closer, tomorrow is nothing. Making a deal now is everything.
How to deal with a Closer
The best way to deal with a Closer is to do your research ahead of time. Those hot buttons are really all he has to work with, so research each of these areas thoroughly to reduce or eliminate what the Closer can use against your good deal. In essence, you should have done enough research to know exactly where you stand.
Closer quick tip: If you’re presented with something you haven’t researched (extended warranty, GAP insurance, etc.), your Closer is surely trying to find a way to pick up more gross profit. It’s best not to buy anything additional until you’ve completed your research independently first.
Closer counter weapon: To a Closer, your greatest weapon is “Later.” If you feel uncertain about any aspect of your deal, you can always put it on hold, go home, and do more research. That said, I must offer you this weapon with a warning: Threatening to go home or think it over can make a Closer’s questions sound like offers.
Here’s how it might play out:
“I’m going home to think it over.”
“Would you still leave if the price were xyz?”
“Yes, dear Closer, I would.”
“Even if your rate was 0%?”
“Yes, dear Closer, I would.”
“Even if we stepped it up on your trade and offered you xyz?”
“Yes, dear Closer, I would.”
With these questions, the Closer is trying to ensure he’s scrubbed through your hot buttons again. He’s searching out whatever he might’ve missed, while simultaneously planting these offers in your mind so they sound viable. To him, this might keep you away from competitors’ deals, because you’ll be tempted to return and follow through with one of his last-minute offers. You can be sure, though, that these deals are often only window dressing. And he was merely fulfilling the role made possible by a shopper’s lack of research: a Closer.
When you do your research, you can change the Closer’s role from dealership money-maker to information-confirmer. And I think that’s someone we’d all rather deal with. Don’t you?
