conduct sales and support services

F E T C : A u t o m o t i v e S a l e s a n d S u p p o r t S e r v i c e s

US ID 259886 Learner Guide

Conduct sales and support services

i | P a g e

Table of Contents

Table of Contents ............................................................................................................. i

INTRODUCTION ................................................................................................................ 1

PROGRAMME OVERVIEW ..................................................................................................... 2

UNIT STANDARD 259886 ..................................................................................................... 4

Introduction ................................................................................................................... 9

SECTION 1: THE CURRENT STATE OF THE MOTOR INDUSTRY ....................................................... 10

1.1 Introduction ......................................................................................................... 10

1.2 The Value of the Motor Industry for the South African Market (SO5 AC1) ............................... 10

1.3 Industry Trends (SO5 AC2) ........................................................................................ 11

1.4 Legislation guiding the industry (SO5 AC3) .................................................................... 13

1.5 The South African Automotive Industry Code of Conduct ................................................... 14

SECTION 2: IDENTIFY EARLY BUYING SIGNS ............................................................................ 22

2.1 Introduction ......................................................................................................... 22

2.2 Selling Techniques ................................................................................................. 22

2.3 Early Buying Signs (SO1 AC1) ..................................................................................... 22

2.4 Characteristics of Early Buying Signs (SO1 AC1) .............................................................. 23

2.5 Identifying Early Buying Signs (SO1 AC1) ....................................................................... 24

2.6 Questions, Statements and Body Language .................................................................... 24

2.7 Service Advisors reaction to Early Buying Signals (SO1 AC2) ................................................... 26

2.8 Creating Desire......................................................................................................... 27

2.9 Obtain Commitment .................................................................................................. 27

2.10 Preparation to sell in the After Sales Department ............................................................. 28

2.11 Qualifying Customers ................................................................................................ 28

2.12 Types of Products and Services available for sale from the Service Department ........................ 29

2.13 Company Operating Procedures (SO1 AC3) ...................................................................... 31

2.14 Summary ............................................................................................................... 31

SECTION 3: NEGOTIATION ................................................................................................. 32

3.1 Introduction ......................................................................................................... 32

3.2 Negotiation (SO2 AC1) ............................................................................................. 32

3.3 Strategising .......................................................................................................... 34

3.4 Win-Win / Mutual Gains ........................................................................................... 34

3.5 Stages of Negotiation (SO2 AC1) ................................................................................. 35

3.6 Negotiation Style (SO2 AC1) ...................................................................................... 36

3.6 Negotiation Techniques (SO2 AC1) .............................................................................. 37

ii | P a g e

3.7 Qualities of a Good Negotiator (SO2 AC1) ..................................................................... 38

3.8 Negotiating Skills (SO2 AC1) ...................................................................................... 39

3.9 Buyer’s Concerns ................................................................................................... 39

3.10 Concluding the Agreement (SO2 AC2-3) ...................................................................... 39

3.11 Summary ........................................................................................................... 40

SECTION 4: PREPARATION OF QUOTATIONS ........................................................................... 41

4.1 Introduction ......................................................................................................... 41

4.2 Conditions of Sale (SO3 AC1) ..................................................................................... 41

4.3 Preparing Quotations (SO3 AC3) ................................................................................. 41

4.4 Preparing and Presenting Quotations (SO3 AC3) .............................................................. 43

4.5 Presentation......................................................................................................... 43

4.5 Summary ........................................................................................................ 44

SECTION 5: HANDLE AND DEAL WITH CUSTOMER OBJECTIONS AND CONCERNS ................................. 45

5.1 Introduction ......................................................................................................... 45

5.2 Objections (SO4 AC1-2) ........................................................................................... 45

5.3 Dealing with Unresolved Objections and Concerns (SO4 AC3) ............................................. 50

5.4 Summary ............................................................................................................. 51

The procedures to deal with unresolved objections and concerns described in terms of company

policy.SECTION 6: CLOSE THE DEAL AND OBTAIN CUSTOMER COMMITMENT ..................................... 51

6.1 Introduction ......................................................................................................... 52

6.2 Obtaining a Prospective Customers Commitment (SO6 AC1) ............................................... 53

6.3 Closing Techniques ................................................................................................. 53

6.4 Closing the Deal and Securing Customer Commitment ...................................................... 54

6.4 Securing a Future Relationship with your Customer (SO6 AC2) ............................................ 57

6.5 Completing the Paperwork (SO6 AC3) .......................................................................... 58

6.5 Summary ............................................................................................................. 58

BIBLIOGRAPHY .............................................................................................................. 60

PERSONAL DETAILS

Name

Contact Address

Telephone (H) Telephone (W)

Cellular

ID Number

Learner Number

INTRODUCTION This module belongs to you. It is designed to serve as a guide for the duration of your course and as a resource for after the time. It contains readings, activities, and application aids that will assist you in developing the knowledge and skills stipulated in the specific outcomes and assessment criteria.

Follow along in the guide as the facilitator takes you through the material, and feel free to make notes and diagrams that will help you to clarify or retain information. Jot down things that work well or ideas that come from the group. Also note any points you’d like to explore further.

Participate actively in the skills practice activities as they will give you an opportunity to gain insights from other people’s experiences and to practice the skills. Remember to share your own experiences so that others can lean from you too.

Each section will be preceded by outcomes and assessment criteria taken from the South African Unit Standards, where available. These will describe what you must know and be able to do in order to successfully complete the course. If the course is aligned to Unit Standards, you will be able to receive credits towards a National Qualification upon successful assessment.

2 | P a g e

PROGRAMME OVERVIEW

Purpose

In order to achieve the credits and qualify for the this appropriate registered standard, determined by the Sector of Education Training Authority, you are expected to have demonstrated specific learning outcomes.

Specific Outcomes

Specific Outcomes describe what the learner has to be able to do successfully at the end of this learning experience.

Assessment Criteria

The only way to establish whether a learner is competent and has accomplished the specific outcomes, is through the assessment process. Assessment involves collecting and interpreting evidence about the learners’ ability to perform a task. This module includes assessments in the form of self-assessments, group tasks, quizzes, projects and a practical training programme whereby your are required to perform tasks and collect, as portfolio of evidence, proof signed by your facilitator that you have successfully performed these tasks.

To Qualify

To qualify and receive credits towards your qualification, a registered Assessor will conduct an evaluation and assessment of your portfolio of evidence and competency.

Range of Learning

This describes the situation and circumstance in which competence must be demonstrated and the parameters in which the learner operates.

Responsibility

The responsibility of learning rests with you, so ………

▪ Be proactive and ask questions

▪ Seek assistance and help from your facilitator, if required.

How You Will Learn

The programme methodology includes facilitator presentations, readings, individual activities, group discussions and skill application exercises. Know what you want to get out of the programme from the start and start applying your new skills immediately. Participate as much as possible so that the learning will be interactive and stimulating.

How you will be assessed

This programme has been aligned to registered unit standards. You will be assessed against the outcomes of the unit standards by completing a assessments that cover the essential embedded

3 | P a g e

knowledge stipulated in the unit standards, and by compiling a portfolio of evidence that provides proof of your ability to apply the learning to your work situation. When you are assessed as competent against the unit standards, you will receive 10 credits towards your National Qualification.

4 | P a g e

UNIT STANDARD 259886

Unit Standard Title

Conduct sales and support services

NQF Level

4

Credits

16

Purpose

A Learner is capable of conducting sales in a specific industry by presenting the products and services to the customer in such a way that is conducive to a successful sale. A Learner is capable of acting in such a manner to enhance the image of the specific retail industry.

• On achievement of this unit standard, the learner will be able to:

• Identify early buying signals and act thereupon.

• Negotiate and/or agree to the terms and conditions of the sale.

• Prepare quotations according to organisational standard policies and procedures.

• Handle and deal with customer objections and concerns.

• Describe the current state of a specific industry.

• Close the deal and obtain customer commitment.

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

It is assumed that a learner will be competent in:

• Communication at NQF Level 3.

• Mathematical Literacy at NQF Level 3.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Identify early buying signals and act thereupon.

ASSESSMENT CRITERION 1

The characteristics of early buying signals are described, as is applicable to a specific industry.


The reaction to early buying signals is demonstrated according to organisational procedures in a structured scenario.

5 | P a g e


The standard company sales procedures are explained in terms of obtaining a prospective buyer's commitment.

SPECIFIC OUTCOME 2

Negotiate and/or agree to the terms and conditions of the sale.


Items requiring agreement are identified to the satisfaction of the customer and organisation.


An agreement on the supply of the product/service is concluded that meets the requirement of all parties.

ASSESSMENT CRITERION RANGE

All parties may include but is not limited to the client; external suppliers and the retailer.


Agreements are formalised and documented according to organisational requirements.

ASSESSMENT CRITERION RANGE

Organisational requirements may include but are not limited to legal prescripts.

SPECIFIC OUTCOME 3

Prepare quotations according to organisational standard policies and procedures.

OUTCOME RANGE

The above specific outcome must take cognisance of any impacting legislation.

ASSESSMENT CRITERIA


Conditions of the sale are defined in terms of company procedures and legislative framework.


The commitment of, internal and external departments are formalized to meet the requirements of the quotation.

6 | P a g e


Quotation is presented according to organisational and legislative and legal requirements.

SPECIFIC OUTCOME 4

Handle and deal with customer objections and concerns.

ASSESSMENT CRITERIA


The method of clarifying and addressing concerns and objections of customers are described in terms of organisational policies.


A proposal to address customer objections and concerns is formulated in terms of company policies and procedures.


The procedures to deal with unresolved objections and concerns are described in terms of company policy.

SPECIFIC OUTCOME 5

Describe the current state of a specific industry.

ASSESSMENT CRITERIA


Divisions of a specific industry are described with reference to the role and contribution of each division to the industry.


Industry specific information is analysed to determine trends and availability.


The purpose of specific Legislation relating to an industry division is described in terms of the objectives.


The consequences of non-compliance to industry specific legislation are described in terms of the legislation.

7 | P a g e

SPECIFIC OUTCOME 6

Close the deal and obtain customer commitment.

ASSESSMENT CRITERIA


The Customer's commitment to purchase is formalised and a cause of action agreed according to organisation policies and procedures.


The ability to secure a future relationship with the customer is demonstrated in terms of company policies and procedures.


The process to distribute the different documents is explained according to company procedures.

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE

• Presentation skills related to the retail industry.

• Product knowledge, FAB's (Features and benefits), communication skills.

• Selling skills (buying psychology).

• Add on products and services.

• Negotiation skills related to product, price, terms and conditions.

• Organisational policies and procedures.

• Legislative requirements.

• Organisational policies/Trading concessions.

• Market intelligence.

• Basic financial and business skills.

• Conflict handling skills.

• Identification of buying signals.

• Features Advantages Benefits.

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO IDENTIFYING

Identify and solve problems in a critical and creative way when presenting products and services to the customer in such a way that is conducive to a successful sale.

UNIT STANDARD CCFO WORKING

Work effectively with others as a member of a sales team in the automotive industry.

8 | P a g e

UNIT STANDARD CCFO ORGANISING

Organise and manage oneself and one's personal activities responsibly and effectively.

UNIT STANDARD CCFO COLLECTING

Collect, analyse, organise and critically evaluate information relevant to conducting sales in the automotive vehicles.

UNIT STANDARD CCFO DEMONSTRATING

Understand and apply a range of office management-related techniques, procedures and experimental approaches required in the different specific programmes leading up to this qualification.

Understand the world as a set of related systems by recognising that conducting sales in the automotive industry do not exist in isolation.

9 | P a g e

Introduction This manual will be useful for learners who sell retail and commercial motor vehicles, service and maintenance interventions, tyres, motor bikes and vehicle parts.

In this program we will discuss the concept of developing and growing your business by conducting sales in your industry and presenting the products and services in a way which will lead to a successful sale.

The learning outcomes are:

• Being able to describe the current state of an industry

• Being able to identify early buying signals and acting on them

• Being able to negotiate and/or agree to the terms and conditions of the sale

• Being able to prepare quotations according to organisational standard policies and procedures

• Being able to handle and deal with customer objections and concerns

• Close the deal and obtain customer commitment

Contextualisation Activity

10 | P a g e

SECTION 1: THE CURRENT STATE OF THE MOTOR INDUSTRY

Specific Outcome 5: Describe the current state of a specific industry.

Assessment Criteria

1. Divisions of a specific industry are described with reference to the role and contribution of each division to the industry.

2. Industry specific information is analysed to determine trends and availability.

3. The purpose of specific Legislation relating to an industry division is described in terms of the objectives.

4. The consequences of non-compliance to industry specific legislation are described in terms of the legislation.

1.1 Introduction In this program we will discuss the concept of developing and growing your business by

conducting sales in your industry by presenting the products and services in a way which will

lead to a successful sale.

1.2 The Value of the Motor Industry for the South African Market (SO5 AC1) The motor industry in South Africa accounts for an average of 6% of the GDP of the Country.

The motor industry sector’s contribution to GDP peaked at 7.35 percent in 2006. The motor industry’s contribution to GDP is based on research conducted by Econometrix and takes account of the value addition in broadly defined sectors. These cover vehicle retail, distribution and servicing, automotive parts production, as well as vehicle production.

The Department of Trade and Industry has frequently acknowledged that the automotive industry is the most important segment in the manufacturing sector.

Gross Domestic Product – GDP - The monetary value of all the finished goods and services produced within a country's borders in a specific time period. GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlay, investments and exports, fewer imports which occur within a country.

GDP = C + G + I + NX

Where:

"C" is equal to all private consumption, or consumer spending, in a nation's economy

"G" is the sum of government spending

“I" is the sum of all the country's businesses spending on capital

"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)

11 | P a g e

1.3 Industry Trends (SO5 AC2)

1.3.1 Sales trends

Vehicle manufacturing in South Africa:

12 | P a g e

Vehicle sales trends have shown a marked improvement during 2011, and have passed the 2004 sales volumes.

The Sales Department sells the first vehicle, and the Service Department sells the second vehicle. It is the Service Department which develops the long-term relationship with the customer during the interaction when the vehicle is being serviced.

13 | P a g e

The Sales and Service department therefore depend on each other to develop the Dealership’s business.

1.3.2 Service Trends

The major brands in the South African market have launched vehicles with service or maintenance plans to ensure that the vehicles will be serviced by the franchised motor dealers. These vehicles present the opportunity of having the customer return to the Dealership during the lifecycle of the vehicle. He or she can be convinced to continue using the Dealership after the expiry of the service plan or can be sold a new vehicle.

1.3.3 Service and Parts Contribution to the Dealership

The Dealer’s role and contribution to the market is thus a very important one. The Service and Parts Departments contribution to the Dealer’s profit is shown in the table below. The average benchmark figures for the first quarter 2011 were used for the total cost recovery of the Dealership. The Service and Parts Departments thus contributed on average 55% to the Dealership.

1.4 Legislation guiding the industry (SO5 AC3)

Why do we need legislation to guide the industry?

1) To promote a fair, accessible and sustainable marketplace for consumer products and services. 2) For that purpose, to establish national norms and standards relating to consumer protection. 3) To provide for improved standards of consumer information. 4) To prohibit certain unfair marketing and business practices. 5) To promote responsible consumer behaviour. 6) To promote a consistent legislative and enforcement framework relating to consumer transactions and agreements. 7) To establish the National Consumer Commission.

14 | P a g e

The people of South Africa recognise:

• That the apartheid era and the discriminatory laws of the past have burdened the nation with unacceptably high levels of poverty, illiteracy and other forms of social and economic inequality.

• That it is necessary to develop and employ innovative means to:

(a) Fulfil the rights of historically disadvantaged persons, and to promote their full participation as consumers.

(b) Protect the interests of all consumers, ensure accessible, transparent and efficient redress for those consumers who are subjected to abuse or exploitation in the marketplace, and

(c) To give effect to internationally recognised customer rights.

Recent and emerging technological changes, trading methods, patterns and agreements have brought, and will continue to bring, new benefits, opportunities and challenges to the market for consumer goods and services within South Africa.

It is desirable to promote an economic environment which supports and strengthens a culture of consumer rights and responsibilities, business innovation and enhanced performance.

The Consumer Protection Act 68 of 2008 was drafted to protect the rights of the South African consumer, and as of 31st March 2011 all provisions are in force. The Act brings about an important change in the way business is conducted, as it requires businesses to interact and deal with customers in a fair, reasonable and honest manner.

We are all consumers in our personal capacity. We should all know our rights and obligations. The Automotive Industry of South Africa will at all times endeavour to comply with the contents and spirit of this Code of Conduct when supplying goods and services to consumers.

1.5 The South African Automotive Industry Code of Conduct

The Automotive Industry of South Africa will achieve its vision in three ways:

• Subscribing to this Code of Conduct

• Providing goods and services which are safe, and at prices that are fair and reasonable

• Publicly acknowledging the consumer’s rights 1) To be heard, 2) To be informed, 3) To have the right to safety, 4) To have the right to choose, and 5) To have the right to redress with regard to the South African Automotive Industry

15 | P a g e

This Code, prescribed by the Minister of the Department of Trade and Industry of The Republic of South Africa, and voluntarily established by the Automotive Industry of South Africa, shall regulate the interaction between the Automotive Industry and its consumers in relation to the matters dealt with in the Code. It will provide for alternative dispute resolution between the consumer and all participants in this industry through a scheme for alternative dispute resolution by an accredited Industry Ombudsman.

The objectives of the Act for businesses operating in the Automotive Industry are:

• Promotion of fair business procedures and protection of customers from:

• Unreasonable conduct

• Unfair, unreasonable, unjust contracts and contractual terms

• Unfair, unreasonable, unjust or otherwise improper trade practices

• Deceptive, misleading, unfair or fraudulent conduct

Automotive suppliers should adhere to the following:

• Establish complaints handling processes

• Display the Code of Conduct which binds the Automotive Industry suppliers

• Train all relevant staff members

• Endeavour to resolve disputes in the spirit of the Act

As a member of the Automotive Industry, the steps to consider when handling a complaint could include the following:

• Document the steps you are going to take

• Document, and write down the details of the complaint

• Take down all the dates and details of the people to whom you spoke

• Be assertive, but keep your temper in check

• Give the company a reasonable time for a settlement (7 days)

•

Should a complaint not be resolved to your customer’s satisfaction, contact the office of the Ombudsman for information and assistance. You need to lodge the dispute with the Ombudsman within 10 days of the customer informing you that he or she is not satisfied with the outcome.

The Ombudsman has the necessary skills to adjudicate a dispute, especially when the matter concerns technical issues. It is therefore important that a dispute is sent for adjudication the moment you become aware or are informed that the customer is not happy with the outcome of your dispute resolution. A court of law does not necessarily have technical expertise and therefore the outcome could be different to the outcome from the technical experts (such as the Ombudsman).

16 | P a g e

The decision of the Ombudsman is final, and both parties are bound by the decision.

➢ Consumers’ rights to pre-authorisation of repairs or maintenance

If a Service Provider supplies a repair or maintenance service to or supplies or installs any replacement parts or components, the Service Provider must

• Give the consumer an estimate which complies with the requirements of the Act. The consumer then authorises the work after receipt of the quote or estimate

• Get the consumer to authorise the work up to a maximum amount. The amount charged must not exceed the maximum amount authorised

• A Service Provider may not charge a consumer for such an estimate unless the cost is disclosed to the consumer

• A supplier may not charge a consumer a price in excess of an estimate unless

o After providing the estimate, the Service Provider has advised the consumer of the additional charges

o The consumer has authorised the work to be continued

o Proof of this authorisation is in writing/sms

➢ Consumers’ right to cancel advance reservation, booking or order

A consumer has the right to cancel any advance booking, reservation or order for any goods or services to be supplied.

A supplier who made a commitment, or accepts a reservation or goods or services to be supplied can require payment of a reasonable deposit in advance, and impose a reasonable charge for cancellation of the order or reservation, unless the consumer is unable to honour the booking, reservation or order because of the death or hospitalisation of the person for whom, or for whose benefit the booking, reservation or order was made.

A charge is deemed unreasonable if it exceeds a fair amount in the circumstances, with regard to:

• The nature of the goods or services reserved or booked.

• The length of notice of cancellation provided by the consumer.

➢ Consumers’ right with respect to delivery of goods or supply of service

A Dealership should be transparent, fair and honest in all dealings with customers. Contact, interaction and transactions should be recorded if meetings took place.

During trade-in evaluations the Dealership needs to disclose the basis of the evaluation to the customer in case of accident damage, mileage and service history.

Over-allowances can put a Dealership at risk if this is not disclosed to the customer. This should be in writing in case a vehicle is returned or cancelled. The risk will be that the

17 | P a g e

Dealership will then have to refund the full trade-in value/amount, if the over- allowance had not been disclosed.

It is an implied condition of every transaction for the supply of goods or services that the supplier will deliver the goods or perform the services at an agreed date and time (or otherwise within a reasonable time after concluding the transaction) – (within 30 days of goods being available), and at an agreed place of delivery or performance, at the supplier’s cost, unless specifically agreed otherwise. Goods to be delivered remain at the supplier’s risk until the consumer has accepted delivery of them.

When a supplier tenders delivery of any goods to a consumer, the supplier must, on request, allow the consumer a reasonable opportunity to examine those goods for the purpose of ascertaining whether he or she is satisfied.

If the supplier tenders the delivery of goods or the performance of any services at a location, on a date or at a time other than as agreed with the consumer, the consumer may either:

• Accept the delivery or performance at that location, date and time:

• Require the delivery or performance at the agreed location, date and time, if that date and time has not yet passed:

• Cancel the agreement without penalty, treating any delivered goods or performed services as unsolicited goods or services.

➢ Unacceptable conduct

A supplier or an agent of the supplier must not use physical force against a consumer, coercion, undue influence, pressure, duress or harassment, unfair tactics or any other similar conduct, in connection with any:

• Marketing of any goods or services

• Supply of goods or services to a consumer

• Negotiation, conclusion, execution or enforcement of an agreement to supply any goods or services to a consumer

• Demand for, or collection of, payment for goods or services by a consumer

• Recover goods from a consumer.

In addition to any of the conduct above, it is unacceptable for a supplier to take advantage of knowing that a consumer was unable to protect his or her own interests because of physical or mental disability, illiteracy, inability to understand the language of an agreement, or any other similar factor.

In relation to the marketing of any goods or services, the supplier must not, by words or conduct:

18 | P a g e

• Express or imply a false, misleading or deceptive representation concerning a material fact to a consumer

• Exaggerate, or fail to disclose a material fact if that failure amounts to a deception

• Fail to correct an apparent misunderstanding on the part of a consumer, amounting to a false, misleading or deceptive representation

• Require any other person to do so on behalf of the supplier.

Dealers must ensure all the facts required are disclosed, as well as other facts which may not be hidden from the customer. For example:

• Fuel consumption to be stated (at what speed, under what road conditions)

• Power output

• Price

• Accessories (standard and optional)

• Warranty (time, distance covered and exclusions)

• Service and maintenance plans (time, distance covered as well as exclusions from plans).

➢ Unfair, unreasonable or unjust contract terms

A supplier must not offer to supply or enter into an agreement to supply, any goods or services at a price which is unfair, unreasonable or unjust: or on terms which are unfair, unreasonable or unjust.

A supplier must not market any goods or services, or negotiate, enter into or administer a transaction or an agreement for the supply of any goods or services, in a manner which is unfair, unreasonable or unjust.

A supplier must not require a consumer, or other person to whom any goods or services are supplied, to waive any rights, assume any obligation or waive any liability on the part of the supplier, on terms which are unfair, unreasonable or unjust, or impose any such terms as a condition of entering into a transaction.

The Dealer OTP’s, job-cards, invoices, receipts, and trade-in valuations are drafted in plain and simple language to ensure customers’ complete understanding.

The CPA documentation supplied to the customers must be completed in full and signed by all parties involved in the transaction. This is a requirement by law.

➢ Right to fair value, good quality and safety

When a supplier undertakes to perform any services for, or on behalf of a consumer, the consumer has a right to:

19 | P a g e

• Timely performance and completion of those services, and timely notice of any unavoidable delay in the performance of the services

• Performance of the services in a manner and quality which consumers are generally entitled to expect

• Use, delivery or installation of goods which are free of defects, and are of a quality which consumers are generally entitled to expect:

• The return of any property, or the control over any property of the consumer in at least as good a condition as it was when the consumer made it available to the supplier for the purpose of performing such services.

If a supplier fails to perform a service to the standards above, the consumer may require the supplier to either remedy any defect in the quality of the services performed or goods supplied, or refund the consumer a reasonable portion of the price paid for the services performed and goods supplied, having regard to the extent of the failure.

Except otherwise advised or agreed to, every consumer has a right to receive goods that:

• Are reasonably suitable for the purposes for which they are generally intended

• Are of good quality, in good working order, and free of any defects

• Will be useable and durable for a reasonable period of time, having regard to the use to which they would normally be put, and to all the surrounding circumstances of their supply

• Comply with any applicable standards

➢ Implied warranty of quality

In any transaction or agreement pertaining to the supply of goods to a consumer there is an implied provision that the producer , importer, distributor and retailer each warrant that the goods comply with the requirements and standards contemplated in section 55 (consumer's right to safe, good quality goods), except to the extent that those goods have been altered contrary to the instructions, or after leaving the control, of the producer, or importer, or distributor, or retailer, as the case may be.

Within six months of the delivery of any goods to a consumer, the consumer may return the goods to the supplier, without penalty and at the supplier's risk and expense, if the goods fail to satisfy the requirements and standards contemplated in section 55 (consumer's rights to safe, good quality goods). The supplier must, at the direction of the consumer, either repair or replace the failed, unsafe or defective goods, or refund the consumer the price paid by him or her for the goods.

If a supplier repairs any particular goods or any component of any such goods and within three months of that repair, the failure, defect or unsafe feature has not been remedied, or a further failure, defect or unsafe feature is discovered, the supplier must:

• Replace the goods

• Refund the consumer the price paid by him or her for the goods

20 | P a g e

➢ Warranty on repaired goods

A Service Provider warrants every new or reconditioned part installed during any repair or maintenance work, and the labour required installing it, for a period of three months after the date of installation or period as the supplier may specify in writing.

A warranty in terms of this section is concurrent with any other deemed, implied or express warranty, and is void if the consumer has subjected the part, or the goods or property in which it was installed, to misuse or abuse.

The warranty does not apply to ordinary wear and tear, having regard to the circumstances in which the goods are ordinarily intended to be used.

➢ Subcontractors

A Dealership is responsible for the workmanship of any subcontractor. Staff dealing with sub-contractors needs to inform the customer if work is being done by a subcontractor. Dealerships need to ensure that they work with reputable subcontractors, and have contracts in place for the work performed to mitigate risk.

➢ Safety monitoring and recall

The Commission must promote the development, adoption and application of industry-wide Codes of Practice providing for effective and efficient systems to receive notice of:

• Consumer complaints or reports of product failures, defects or hazards

• The return of any goods because of a failure, defect or hazard

• Personal injury, illness or damage to property caused wholly or partially as a result of a product failure, defect or hazard

• Monitor the sources of information in the above paragraph, and analyse the information received with the object of detecting or identifying any previously undetected or unrecognised potential risks to the public from the use of, or exposure to these goods

• Conduct investigations into the nature, causes, extent and degree of the risk to the public

• Notify consumers of the nature, causes, extent and degree of the risk pertaining to these goods, and if the goods are unsafe, recall these goods for repair, replacement or refund.

If the Commission has reasonable grounds to believe that any goods might be unsafe, or that there is a potential risk to the public from the continued use of or exposure to the goods, and the producer or importer of those goods has not taken any steps required by an applicable code, the Commission, by written notice, may require the producer to:

• Conduct an investigation

• Carry out a recall programme on any terms required by the Commission.

➢ Consequences of Non Compliance to the Act

Enforcement by the National Consumer Commission, the NCC is responsible to issue compliance notices:

21 | P a g e

If a supplier is found non-compliant, the Commissioner may either:

• Apply to the NCC Tribunal to impose an administrative fine, or

• Refer the matter to the NPA for prosecution as an offence.

➢ Penalties

Fine or prison (up to 12 months), or both.

The tribunal may impose an administrative fine up to a maximum of 10% of the respondent’s turnover during last financial year, or R1 million, whichever is the greater.

➢ Summary

The motor vehicle industry is a significant contributor to the overall GDP of the country and is therefore an important sector. The Service Department plays an essential role in maintaining the customer relationship due to the frequent interactions between the customer and the Service Department. South Africa has the Customer Protection Act which governs the interactions between customers and retailers.

In this session we identified:

• The state and value of the South African Industry

• The role and the contribution of the Service Department in the Dealership

• Service Department specific information determining trends and availability

• The purpose of legislation applicable to the Service Department

• The consequences of non-compliance to Service specific legislation.

In session 2 we will identify early buying signals in the interaction between customers and the Dealership in order to increase your business.

Formative Assessment 1

22 | P a g e

SECTION 2: IDENTIFY EARLY BUYING SIGNS

Specific Outcome 1: Identify early buying signals and act thereupon

Assessment Criteria

1. The characteristics of early buying signals are described, as is applicable to a specific industry.

2. The reaction to early buying signals is demonstrated according to organisational procedures in a structured scenario.

3. The standard company sales procedures are explained in terms of obtaining a prospective buyer's commitment

2.1 Introduction This session will focus on the different stages involved in conducting a sale. We will consider

how to interact with a prospective buyer/customer and how to identify early buying signals.

We will also consider how best to formalise a prospect’s commitment to purchase a service or

vehicle, using specific procedures and documents, such as quotations, paying special attention

to the specifications outlined by your organisation. This will include dealing with customer

objections and ensuring that customer needs are met so that the sale concludes in a successful

manner, and results in the establishment of a long-term business relationship.

2.2 Selling Techniques This learning unit will focus on the different stages involved in conducting a sale. We will consider how to interact with a prospective buyer/customer and how to identify early buying signals. We will also consider how best to formalise a prospect’s commitment to purchase a vehicle, through the use of specific procedures and documents, such as quotations, paying special attention to the specifications outlined by your organisation. This will include dealing with customer objections and ensuring that customer needs are met so that the sale concludes in a successful manner, and results in the establishment of a long-term business relationship.

2.3 Early Buying Signs (SO1 AC1) Once the customer accepts the offered solution, you are actually at the start of the closing

process. It is important to remember that the customer’s needs must come first, and you must

ensure that you know exactly what your customer wants. If a customer does not accept what

you have offered him or her, there is no deal, and it is unlikely that a sale will take place.

One way in which to determine whether the customer is interested in closing the deal is to look

for ‘buying signals’. Buying signals indicate that a customer is now ready to buy, and the deal

should be closed as soon as possible. Typical examples of buying signals include:

23 | P a g e

• Kinaesthetic signals - if the customer starts touching the accessories, vehicles for sale, or

looks at a banner or poster explaining service special offers

• Visual signals – changes in the customer’s facial expressions or behaviour. For example, if

the customer’s pupils expand, or if he or she smiles

• Auditory signals - If the customer says things like “This looks good” or “I like this.”

When the customer gives a buying signal in the form of a question, you may choose to answer it

with a question. For example, the customer asks if the service plan is available after 120,000

kilometres, and you ask if the customer would like the service plan to be available after

120,000 kilometres. This will show that you have heard the customer and that you are

interested in fulfilling his or her needs as far as possible.

Buying signals are a chance to move towards formalising the sales agreement through

discussing more specific sales terms and options with the customer and securing his or her

commitment to purchase.

If the customer chooses not to continue with your sales presentation at this stage, remain

professional, and ensure that you leave the customer with your contact details, relevant

brochures/documents, and a favourable impression of both you and the organisation. You

might also offer to take their contact details so that you can contact them at a later stage.

Buying signal: an indication that the prospect appears convinced and may be ready to conclude

the sale. Buying signals might include positive statements, leading questions, or relevant

actions/body language such as smiling or nodding.

2.4 Characteristics of Early Buying Signs (SO1 AC1) Once the customers are aware of the product or service and his or her interest is sparked, the

Service Advisor can expect the customer to send out some early buying signals. These buying

signals normally take the form of non-verbal (Body language) and verbal (Request for

Information).

The body language of the customer is normally characterised by:

• Positive nodding

• Inspecting the product with interest

Verbal early buying signals normally take the form of request for information on:

• Pricing

24 | P a g e

• Discount available

• The benefit of the product /service

• Availability of the product

• Time of delivery

• Available options

• Alternative products/ brands

• Warranty on the product/service

• References from other clients

• Track record of the product and reviews

2.5 Identifying Early Buying Signs (SO1 AC1) The customer will display early buying signals only if his or her attention has been drawn to the product or service available and he or she is interested in it. The desire to buy must be created by offering the service, or making the customer aware of the service. The Service Advisor should be aware of the buying signals and act on the signals

2.6 Questions, Statements and Body Language

2.6.1 Questions

The questions the prospect asks will tell you a great deal about his or her thoughts. Some

typical questions which are buying signals include the following:

• "Could I try this out one more time?"

• "What sort of credit terms do you offer?"

• "How soon can you deliver?"

• "How can I even think of buying with interest rates so high?"

• Do you have this part available?

25 | P a g e

• Do you sell rebuilt engines?

Questions, which are concerned with terms, delivery, quantity, benefits and service, usually

indicate a positive buying attitude. Questions which ask about product features, ease of use,

maintenance are more neutral. Questions, which are negative, are usually pretty obvious. "This

computer was rated tenth by Consumer Reports, wasn't it?"

2.6.2 Statements

A prospect might comment about a product or service indicating various buying signals. You

might hear statements like:

• "That's very interesting"

• "We could probably afford that"

• "This is much too expensive"

• "It's not exactly what I need"

• "That's better than I expected"

2.6.3 Body Language

26 | P a g e

We give our thoughts away through our posture, facial expressions, and hand and arm

movements. If you watch your prospects carefully you will see many correlations between their

body language and their intentions. Keep these clues in mind:

• If the client is sitting, open arms indicate receptiveness: tightly crossed arms indicate

defensiveness

• Leaning forward and listening carefully shows interest

• Supporting his or her head with one hand and gazing off into space means you have lost

your prospect

• Increasingly tense postures are not a positive indicator. People tend to relax when they

have made a decision to buy. Happy, animated facial expressions show that the prospect is

relating well to you and your product

2.7 Service Advisors reaction to Early Buying Signals (SO1 AC2) When the Service Advisor identifies an early buying signal (which could be any one or a combination of the buying signals above) it is critical that he or she first builds value into the product or service to increase the desire. Do not start discussing pricing and discount. The first step in building value after creating desire is to qualify the customer.

You need to react immediately to Buying Signals. These signals can and do go away as quickly as they appear. You should make suggestions instead of keeping on 'presenting'. You can talk yourself out of an order that was there for the taking. Any information you give a prospect after they have decided to buy from you begins to give them reasons to change his or her mind.

You should further respond by making suggestions. If the signal took the form of a question, answer it briefly, but move straight away into making suggestions. These signals can be misinterpreted, so you have to be careful. The prospect may just be seeking clarification, but you must have their attention to change their “seeking” into “wanting”. You have to be alert for the specific signal that they are ready to buy!

27 | P a g e

2.8 Creating Desire Creating the desire to purchase is often the most difficult stage of the sales process as you must convert basic facts, such as vehicle features, into relevant information which responds to the needs of the customer. This desire to answer an established need creates an impulse within the customer to act and purchase. In matching need and desire, you are, in effect, identifying the customer’s problem and offering him or her, a viable solution through the purchase of a relevant product/service plan. This moves the customer from his or her current state to the desired state. In order to affect this move, you must shift from a purely product focus to a situational focus. Ask yourself what is the customer’s desired state? What does he or she need to get to that state?

It is important to present the customer with a simple and relevant solution to his or her perceived problem. There is no need to be over-technical at this stage, but it is important to focus on how the technical aspects of a vehicle can benefit the customer, addressing his or her established needs. This proof of product/plan suitability will also help lessen customer objections and concerns.

2.9 Obtain Commitment When you pick up on these signals you should never hesitate, but:

Dig deep to clarify. Probe deeper to explore the buying signals. In most cases, your prospect

will give you the necessary information. Keep your approach non-confrontational and neutral.

Learn to handle objections in a non-

argumentative manner. If you talk too

much, it will seem that you are trying

to justify your product or price.

Sometimes you can talk yourself out a

sale!

Ask for the sale. As long as you do not

pressure the customer into making a

decision, he or she will not be offended

by your request. Ask with confidence for the sale and begin asking your qualifying questions.

28 | P a g e

Recognize that many people want to be given permission to make a decision and look to the

salesperson for that permission. At a certain point, it becomes necessary to ask if the customer

intends buying from you. Questions are a selling technique which can be used to determine this

intention. In this context, ‘closing’ means asking indirectly if the customer is going to buy the

product.

Examples of typical closing questions include:

• “Would you like us to fit a tow-bar for you?”

• “Would you like me to take a few details and contact you with more information?”

• “I can do it for you tomorrow, would that suit you?”

• “Would it help if we could arrange finance to assist you with the replacement of the

engine?”

Use Polite Persistence: The most successful salespeople ask for the sale seven or eight times

and do not give up at the first sign of resistance. Research has shown that these salespeople

consistently earn more than others in the team.

The benefits of creating customer desire and commitment include:

• Providing a better service to the customer by offering a range of service options:

• Increasing customer satisfaction because he or she will appreciate your perceived

thoughtfulness:

• Increasing profits from sales.

2.10 Preparation to sell in the After Sales Department Service Advisors have the opportunity to research customers on the system before they arrive at the Dealership. The system will give you information about the client and allow you to match your services to the customer’s needs. This simply means that you are qualifying customers through preparation in order to make additional sales.

2.11 Qualifying Customers

2.11.1 What is Qualification?

Customer qualification is nothing more than fact-finding. Find out as much as you can about the customer or potential customer before you start selling anything. This will help you sell the product or service because you will understand why the customer could be buying.

29 | P a g e

2.11.2 Why do we Qualify?

If we qualify customers properly and thoroughly, we can more than double our chances of making a profitable sale. When we qualify customers we can discover exactly how we can help them to make the right buying decision

2.11.3 How do we Qualify?

We qualify in three ways:

1) First by investigation.

We look at the customer’s vehicle service history and at the information at hand. (Kilometres, type of vehicle, vehicle age and so on)

We ensure that we know who the customer is, and what he or she wants.

2) Secondly we qualify by observation.

We then also look at the customer. The way the customer dresses, his or her manner and the way he or she behaves. We also look at the vehicle. The condition of the vehicle can tell us a lot about the customer.

3) Thirdly we qualify by communication.

We talk to the customer and ask questions (the who, what, why, when and how).

We ensure that we thoroughly understand exactly who the customer is and what he or she wants before we react to any early buying signals and start selling anything.

2.12 Types of Products and Services available for sale from the Service Department Products and Services available for sale from the Service Department include regular servicing, routine maintenance and replacement of components, sale and fitment of accessories, as well as value added products like extended warranties on refurbishing and replacing of major components.

30 | P a g e

The stages in the service process which allow an opportunity to sell the above products are in the table below.

Stages in the Service Sales Process Potential Products to Sell

Appointment Service, tyres, valet

Booking in Service, tyres, valet, paint protection, extended warranty, extended service plan, any additional work.

Repair Authorisation Repair, extended warranty, extended service plan, valet, tyres.

Vehicle Servicing Additional work for example, brake pads, clutch repair

Quality Control Paint protection, stone chips

Vehicle Delivery Paint protection, stone chips, valet, and confirm holiday safety check.

Follow-up Safety check, reminder brake pads, clutch, tyres, valet service.

The possible motivation for purchasing the products is shown in the table below:

Convenience Only Supplier Price Trust Relationship

Regular Service x x x x

Major

replacement/engine

overhaul

x x x

Non warranty or

service repacements

(tyres, shock

absorbers)

x x x

Accessories (canopies,

tow bar, wheel rims)x x

Vallue add products

(extended warranty or

service plans)

x x x x

Motivation to Purchase

Other services offered could include car hire and delivery to workplace.

31 | P a g e

2.13 Company Operating Procedures (SO1 AC3) The Company policies and procedures when entering into a sales agreement should be observed

at all times. The Sales and Service processes, as documented by your company’s policies, must

be followed. The credit agreement acts as well as the customer protection act must be

observed.

The definition of Company’s policies are usually, a documented set of broad guidelines,

formulated after an analysis of all internal and external factors which can affect a firm's

objectives, operations, and plans. These policies are formulated by the company's board of

directors. Corporate policy lays down the firm's response to known and knowable situations and

circumstances. It also determines the formulation and implementation of strategy, and directs

and restricts the plans, decisions, and actions of the firm's officers in the achievement of its

objectives.

2.14 Summary During this session we discussed:

• The characteristics of early buying signals applicable to a specific industry

• The reaction to early buying signals according to organisational procedures in a structured scenario

• The standard company sales procedures in terms of obtaining a prospective buyer’s commitment.


http://www.businessdictionary.com/definition/guideline.html

http://www.businessdictionary.com/definition/analysis.html

http://www.businessdictionary.com/definition/external-factors.html

http://www.businessdictionary.com/definition/objective.html

http://www.businessdictionary.com/definition/operations.html

http://www.businessdictionary.com/definition/plan.html

http://www.businessdictionary.com/definition/board-of-directors.html

http://www.businessdictionary.com/definition/board-of-directors.html

http://www.businessdictionary.com/definition/response.html

http://www.businessdictionary.com/definition/strategy.html

http://www.businessdictionary.com/definition/decision.html

http://www.businessdictionary.com/definition/action.html

http://www.businessdictionary.com/definition/officer.html

32 | P a g e

SECTION 3: NEGOTIATION

Specific Outcome 2: Negotiate and/or agree to the terms and conditions of the sale.

Assessment Criteria:

1. Items requiring agreement are identified to the satisfaction of the customer and organisation.

2. An agreement on the supply of the product/service is concluded that meets the requirement of all parties (all parties may include but is not limited to the client; external suppliers and the retailer)

3. Agreements are formalised and documented according to organisational requirements (organisational requirements may include but are not limited to legal prescripts)

3.1 Introduction Once the customer has indicated a willingness to buy the vehicle, it is time to draw up a written sales agreement. While your organisation might have specific rules on how to conduct a written sales agreement, some general aspects of such a process will be discussed here.

3.2 Negotiation (SO2 AC1) People learn and practice the art of negotiation from the time they are young children. For a

business, negotiation can make or break your company. Making the best deal possible is

especially critical in tough economic times. By following several tips, you will be able to apply

negotiating skills effectively in many situations to tighten your bottom line.

Having identified the customer’s needs and presented the product that you feel will solve the

problem, or satisfy the need, you might still find that purchase (in terms of signing the

paperwork) does not automatically take place. There might very well be a number of items to

be included in the written sales agreement which require the customer’s acceptance or certain

conditions of the sale needing negotiation.

These items should be identified as early in the sales process as possible and might include:

• Price of service, repair or vehicle

• Completion date/time of repair or delivery date of new vehicle

• Warranty/guarantee agreements

• Maintenance contracts

• Available product colours.

33 | P a g e

In a service environment the following items form part of the negotiation elements:

• The brand of the product:

• The ability to deliver on time:

• The warranty on the service or product:

• The price of the service or product.

3.2.1 The Skill of Negotiating

As a Dealership employee, interacting with customers, and negotiating is a technique you must

master. The act of negotiating takes place when attempting to influence others to improve or

adopt a new practice. Negotiation can take place throughout the sales process, from trying to

get an appointment, to getting your customer to agree with a certain point included in the

sales documents, to finally closing the deal.

3.2.2 Why do we Negotiate?

It is important to remember that in any sales negotiation price is not the only item open to

negotiation. Some companies do not negotiate and are totally inflexible and then sales are

lost. Sometimes Service Advisors do not negotiate and go steaming straight into offering the

maximum discount. When this happens, then negotiation cannot take place any further

(without making a loss) and again the Service Advisor comes up against a brick wall. The reason

for negotiation is to prevent any of these factors from happening.

3.2.3 How do we Negotiate?

Always start to negotiate with the customer at full profit by giving them the retail rate for the

product or service. Once you have told the customer the price of the service or product, wait

for the customer to speak first. Occasionally he or she will say “as much as that?” It is then

that you need to start negotiating for maximum profit retention. All the time you are

negotiating it is important to remember that “discount is always optional”. It is the wise

Service Advisor who always remembers that profit comes from the discount which was not

given away.

3.2.4 When to Negotiate?

It is probably more important to know when not to negotiate. Too many Service Advisors

negotiate far too soon in a sale. They try to talk money to the customer as soon as he or she

gives the first buying signal. You must qualify the customer first, and you must present the

product. You must convince the customer that your offering is true value for money

3.2.5 Prepare for Negotiation

Know with whom you are negotiating. This requires some background and research on your

part. Talk to other business associates who have worked with the person or company before.

They can provide valuable insight.

34 | P a g e

Understand the product or service you plan to negotiate. Use strategic psychology in dealing

with people, remember the personality styles you covered during session one. Have pricing in

mind before you begin. Consider budgeting, management directives, sales goals and other

outside forces. Deal with the right person who can make business decisions so you do not need

to talk to someone else with more authority when you think you have already reached an

agreement. For example, check before you start whether the service authorisation is the driver

or maybe a Leasing Company like Avis Fleet Services.

Be mindful of the following when negotiating:

• Be attentive not only of what is being said, but what is not being said (non-verbal

communication, posture, gesture, eye contact, clothing):

• Be a good listener (signals, hidden meanings):

• Know how to ask questions:

• Know how to use persuasive language and concepts:

• Show sensitivity to cultural or national differences:

• Be aware of the advantages and disadvantages of negotiating via different channels of

communication:

An effective negotiator is aware of the numerous strategies and tactics in negotiation.

3.3 Strategising Your first offer will usually set the tone for the rest of the negotiations. While you want to

make an aggressive initial offer, do not be insulting. The ultimate goal is to arrive at some type

of agreement. See if you can bring something to the situation which is not necessarily

monetary, such as delivery, availability, service or another intangible. You can ask for these

things as well. Some negotiations will only be concerned with the bottom line, so offering

intangibles may not work in every situation. Be very cautious when discussing budget

limitations. Watch for nonverbal cues when negotiating. Do not let the pressure to make a deal

force you into a decision you will not be happy with later. Do not be forced into negotiating

with yourself. If you make an offer, wait for a counteroffer from the other person.

3.4 Win-Win / Mutual Gains Before you go into a negotiating session, it pays to prepare by asking yourself what result you

want. Define your desired result and your customer’s desired result in clear and measurable

terms and see how you can compromise. For example, a customer indicates that he or she

expects to pay R25 000 for engine repair, while the price of the repair is R30 000. See if there

35 | P a g e

is some common ground where both parties can meet and decide how far you can shift towards

your customer’s aim, and how far he or she will shift towards you in order to reach a suitable

compromise or acceptable alternative solution.

Assess what is most important to both parties. You might care about price on the service menu

or delivery time: the other person might be

concerned about service quality or follow-up

service. Look at his or her priorities so you

can give what is needed without

compromising your own position. Know your

bottom line in each area. If you might get

further work with this business, take this

into consideration during negotiations.

Maintain your professional demeanour. Help

the other person believe he or she has got

the best possible deal.

3.5 Stages of Negotiation (SO2 AC1)

Stage 1: Presenting a case

Either you present and support your case with persuasive facts and a logical sequence, or the prospect presents his or her case and you listen. You can then ask questions to get more information, if necessary.

Stage 2: Moving forward

Keeping your argument short and to-the-point, discuss each other’s aims and try to move forward in a positive way. You must ensure that you spend time listening to the customer and understanding his or her position.

Stage 3: Reaching agreement

When the opportunity arises, present an appropriate solution. If there is agreement, then you can move on and quickly conclude the deal, confirming the responsibilities and actions of each party.

While progressing through these three stages, you should aim for the win-win situation (an agreement satisfactory to both parties, maybe including a compromise). You should also seek to build trust to develop a solid long-term relationship with your customer. Win-Lose approaches will only damage long-term relations, as the prospect’s resentment will increase along with non-co-operation. Always check with everyone involved in the negotiation throughout the process so that you ensure how all those concerned are feeling. If there are any feelings of reluctance then you can deal with them immediately.

36 | P a g e

Negotiation: Process of trying to reach agreement or compromise through discussion with others.

Compromise: An agreement which is reached where both sides make concessions.

Maximum possible shift: How far someone is willing to shift from his or her aim to meet the other person on common ground.

If your aims are the same, then the negotiation will probably be quite straight-forward. If your shift closes the gap between your positions, you have a strong basis on which to begin bargaining.

3.6 Negotiation Style (SO2 AC1) This model shows the five distinct styles of handling negotiations.

Competitive (High on assertiveness, low on co-operation)

This represents a battling, hard style, with both parties striving hard to achieve their objective, showing little co-operation towards each other. This style can be justified if unpopular actions need to be taken, like cost-cutting, or in emergencies when time does not permit other approaches.

Avoiding (Low on assertiveness, low on co-operation)

37 | P a g e

This kind of person would feel uncomfortable in negotiation situations, and prefers to avoid having to resolve differences through negotiating. This style may be appropriate, if the dangers of confronting the differences outweigh the benefits.

Accommodating (Low on assertiveness, high on co-operation)

The ‘nice-guy’ approach. This shows a high degree of co-operation, but is often ready to give way on objectives. This might be justified if the issues are regarded as trivial. Credits may then be built up which can be used in subsequent negotiations on more important issues.

Compromising (middle position on assertiveness, middle position on co-operation)

This style might be used if the issues do not justify the use of greater assertiveness associated with competing and collaborative approaches. If both parties have roughly equal power and status, but are pursuing opposite objectives, then this approach might be the only realistic option.

Collaboration (high on assertiveness, high on co-operation)

In an ideal situation, the two parties who are each pursuing their own, different objectives and advocating different courses of action, talk through the issues in a constructive, co-operative fashion. They develop a new course of action which permits both sets of objectives to be achieved.

3.6 Negotiation Techniques (SO2 AC1)

Negotiation techniques can range from competitive to compromising. Whatever your style,

during a negotiation with a customer, you should aim to keep the lines of communication open

and work towards a suitable solution. Do not allow differences to cause a breakdown in the

negotiation process.

Example - the customer wants to pay R25 000 for his or her engine but was quoted R30 000.

• Service Advisor’s aim - to repair the engine for R30 000.

• Customer’s aim - to pay R25 000 for his or her new engine.

• Common ground - replacing the present engine with a new or rebuilt engine.

• Service Advisor’s maximum shift - prepared to offer a further R2 000 below the original

quotation.

• Customer’s maximum shift - increase expectation by R2000.

• Alternative offer/solution - Service Department to work over the weekend to reduce

customer inconvenience and expense on hired vehicle, but offer only additional R2 000

discount.

38 | P a g e

There are a number of influencing tactics you can use to sway a negotiation towards your aim.

These include:

• Selling benefits - persuade the customer to see the situation your way by emphasising a

benefit, expressed in terms of the customer’s needs.

• Using a precedent - state a precedent (such as a previous experience) which supports your

proposition.

• Using better information - if you possess information that the customer does not have which

will support your proposition, use it to convince the customer of your position.

• Bringing in - try to involve the customer in building the solution by asking a question which

has an answer supporting your case. Alternatively ask the customer how he or she would like

to resolve the situation.

• Matching interests - make observations or suggestions which demonstrate that you are

thinking about the customer’s needs.

• Offering assistance - you might offer assistance or change your position in exchange for a

shift in the customer’s position.

• Using your status - in some situations, you might decide to use your status as an authority

on the product to ask the customer for agreement.

• Threats or penalties - you can use a price increase or similar condition to put pressure on

the customer, but you should only do this as a last resort. Such a tactic might backfire, and

your customer might back out of the sale. It is often best to focus on the positive aspects of

a purchasing experience.

Negotiation is what takes place when the main parties involved in the service or sale get

together to:

• Work out a deal which is acceptable to the customer:

• Work out a deal which is acceptable to the company.

Unless both the customer and the company benefit from the deal, a sale cannot take place.

3.7 Qualities of a Good Negotiator (SO2 AC1) • Patience

• Endurance

• Stamina

• Willingness to continue

39 | P a g e

• Risk taker

• Tolerate ambiguity

3.8 Negotiating Skills (SO2 AC1) • Allow time for planning

• Collect all available information

• Negotiate internally first

• Be flexible

• Do not give concessions too early

• Do not respond too quickly to demands

• Call "time-outs" when appropriate

• Put yourself in the customer’s shoes

• Do not let egos interfere

• Always follow through

3.9 Buyer’s Concerns • Do we really need this product or service?

• What will the savings be for the company?

• Are there alternatives?

• Do we have sufficient budget?

• Will I be at risk?

• Will this reflect positively on me?

• Will this solidify my position?

• Will this mean more work for me?

• Do my potential gains outweigh the risks?

3.10 Concluding the Agreement (SO2 AC2-3)

3.10.1 Make an offer

Make an offer including all the specifics. This addresses not only financial compensation, but

how much work is involved. This should include clarification regarding type of product, any

incentives, warranties and service and paperwork. You can also trade a lower price for less

service, and use any points listed as bargaining chips. Negotiate any terms you find difficult.

Get all the pertinent aspects in writing. Learn from what you have already accomplished. Make

notes so you can track why you made each offer.

40 | P a g e

3.10.2 Documenting the agreement

Each company has its own formal way in which an agreement is documented. Although your

Manager is fully aware of the documentation process, it is the Administration department

which prepares the documentation and finally processes it. They can thus be regarded as the

custodians of transaction documentation. Each Dealer Group has documented procedures for

delivering quotations and you need to ensure that the written quotation is completed within

Company guidelines and procedures.

During session four we discuss preparing to make an offer by supplying a written quotation.


• The concept of negotiation:

• Preparing for negotiation:

• Recognising the stages of negotiation:

• Familiarising yourself with your negotiation style:

• Using negotiation techniques.


41 | P a g e

SECTION 4: PREPARATION OF QUOTATIONS

Specific Outcome 3: Prepare quotations according to organisational standard policies and procedures.


1. Conditions of the sale are defined in terms of company procedures and legislative framework.

2. The commitment of internal and external departments are formalized to meet the requirements of the quotation.

3. Quotation is presented according to organisational and legislative and legal

requirements.

4.1 Introduction Preparing quotations involves writing, either a formal quotation on a letterhead or email using the correct company corporate identity. It also involves the use of clear language to convey information in a way that is easily understood by the intended audience, in this case your customer. Writing skills are essential to success in many other fields as well, from attorneys and physicians to business managers and social workers. Writing skills focus on informing or persuading an audience, and a successful writer is able to create interest in his or her product. Moreover, compiling a clear and concise quotation with all the information and benefits of your service or product, including all your customer’s requirements creates a professional image of you and your Dealership.

4.2 Conditions of Sale (SO3 AC1) The condition of a sale is the terms you have agreed with your customer regarding the product/service he or she is buying from you. During the discussions you have agreed on certain conditions which might include:

• Delivery

• Terms of payment

• Return of goods

• Liability

• Warranty

• Breach

• Governing law

4.3 Preparing Quotations (SO3 AC3) At times, you might be asked to present your customer with a quotation rather than just conducting a straight-forward sale. A quotation allows the customer to see the costs involved

42 | P a g e

in purchasing a particular product, service or part before he/she or she engages in the written agreement. You might choose to include a quotation in the informative materials you present to the customer during the initial contact so that he/she has this information as soon as possible.

4.3.1 Quotations Formats

A short quotation only containing relevant financial details.

A more involved quotation containing relevant financial details and service or product specifications.

A formal quotation, normally to a business, containing relevant financial details, service or product specifications, company and service details as well as an overview of your organisation’s management.

Whatever quotation you are requested to complete must be prepared in terms of certain criteria. While your organisation might have a set format for presenting quotations, you should always present them in a neat, accurate manner using an appropriate format and organisational stationery. The use of headings, bullet points and sections can help organise the key points neatly and clearly. For example, if you group key points or aspects under headings this will allow the customer to get a quick overview of the presented information.

While the format of each quotation will be quite similar, the content will differ depending on the customer, and the items quoted on. It is important that this content is clear to the customer, and that it motivates him or her to act. When compiling the quotation’s content, you should use clear, simple sentences and phrases, highlighting one idea at a time

4.3.2 Formal Quotation Sequences

There are two possible ways to sequence a formal quotation, which requires close attention to the customer’s specified needs.

Option 1 Option 2

Subject heading Subject heading

Background information Summary or action point

Technical information and detail Background information

Organisational details Technical information and detail

Summary or action point Organisational details

Further information and contact Further information and contact

The only difference between the two sequences is that, in Option 1, the summary or action point is near the end and, in Option 2, it is the first part of your message. You should use Option 1 where it is important that the reader understands the background and detail before being asked to take action and Option 2 where the action point is the most important part of

43 | P a g e

the message.

When preparing a quotation, remember to follow organisational procedures and legal guidelines on what you can offer to a customer. This might include ensuring that internal and external organisational departments can offer what is on the quotation, at the price suggested, within the time frames you have indicated.

4.4 Preparing and Presenting Quotations (SO3 AC3) These guidelines will help you to produce a good first draft which will save you time later. Quotations need to be viewed by a second person to ensure that the guidelines below are observed and that all company and legal matters are covered.

• One idea or price at a time:

• Use your plan to divide the information into separate paragraphs

o Limit the paragraphs to 1 to 3 sentences

o Use short sentences

• Keep the sentences clear, direct and simple

• Choose your words carefully.

You should check the following:

Points

Are all the points covered?

Sequence

Is the sequence logical? Is it right for the message and the reader?

Structure

Have the guidelines on headings, paragraphs and sentences been followed?

Tone and style

Is it clear and direct? Will the reader be able to follow it?

Accuracy

Have all the errors been found, and corrected?

4.5 Presentation ➢ What is presentation

Presentation is simply showing the product to the customer in a personalised way based on the information gathered during the qualification steps.

Presentation is also showing the customer other reasons to buy the product or service. This could mean that you have to take the time to sell yourself and your company as well as the product.

➢ Why present?

44 | P a g e

One of the service customer’s greatest needs at this point, is to be confident in your dealership’s ability to deliver the product. If you present the product properly, then this will raise the customer’s desire, and will reduce discount demands and possible objections. During the presentation you have the opportunity to point the unique features and benefits of the product to the customer

➢ How to present?

rough your qualification you should be able to personalise the presentation. . Remember never give a feature without a benefit.

Examples:

• Our reconditioned engines all come with a 30,000 km warranty. This means that you are assured of trouble-free motoring:

• We only fit genuine factory approved parts to a reconditioned engine. This means that you can be assured of a quality engine:

• We have a highly trained technician who specialises in engine reconditioning. This means your engine will be put together with the same care as when it was first assembled:

• We only fit factory approved canopies. This means that the canopy is tailor made for your vehicle:

• The supplier of the windscreens we fit is not only factory approved but warrants the product and installation. This means you have peace of mind that a quality product is delivered:

• The body-shop which does our body repairs is Factory approved. This means that they only fit genuine Body parts, and deliver work of the highest standard:

• Whenever the body-shop works on any of our customers’ vehicles we do the final inspection. This means the work is of the highest quality.

During session five we will discuss handling customer’s objections and concerns in order for you to conduct sales and increase your business.

4.5 Summary During this session we will discuss the following:

• Conditions of Sale and Quotations defined in terms of Company procedures:

• Commitment of internal and external departments formalised to meet the requirements of the quotations:

Quotation presented according to organisational and legislative and legal requirements


45 | P a g e

SECTION 5: HANDLE AND DEAL WITH CUSTOMER OBJECTIONS AND CONCERNS

Specific Outcome 4: Handle and deal with customer objections and concerns.


1. The method of clarifying and addressing concerns and objections of customers are described in terms of organisational policies.

2. A proposal to address customer objections and concerns is formulated in terms of company policies and procedures.

3. The procedures to deal with unresolved objections and concerns are described in terms of company policy.

5.1 Introduction Handling and dealing with customer objections and concerns is vital in concluding sales. In previous modules units, you have explored how to deal with customer complaints and concerns, but it is worthwhile to reconsider this subject as it is a central part of conducting successful sales. One of the main reasons a customer will stall the conclusion of a sale is that the salesperson has not addressed all the customer’s concerns. In many instances, the customer might just require more assurance and explanation than what has been offered. Once a customer feels more confident about the information you have supplied to him/her, then he or she will become more confident in concluding the purchase.

5.2 Objections (SO4 AC1-2) Objections should be viewed as a positive, not a negative outcome of a sales call. Most sales people view objections as something they want to steer away from. Great sales people know that it is not an objection which is bad, but indifference that is the real killer. Customers who take the time to tell you what they want are much easier to close than those that do not tell you anything at all. Gaining information is one of the keys to closing potential customers.

Think of it this way. Customers who have objections must be interested in your services, otherwise they would just hang-up the phone or leave. Objections allow sales people to discuss the customer’s interests.

5.2.1 What are Objections?

These are the customer's way of having a different view of the situation. Customers want to make the right buying decision for their needs. A solid response to an objection could give your prospect a different way of looking at your product and the one they might be using.

46 | P a g e

Questions are the customer’s way of collecting more information to evaluate the product. Questions demonstrate a greater interest in your product and the customer sees you as a resource.

The customer’s way of asking you to help him or her "bridge the gap". Look at objections as "gateways" to your customer's thought process! Do not let prospects put you on the defensive. You will lose your power. You will lose your influence and you will compromise your edge. You are the service and product expert. Act like it!

Objections will reveal the customer's primary needs or areas of interest. If someone resists a feature of your product, then he or she is telling you an important buying motive. If you demonstrate how this feature is actually a benefit, or insignificant compared to the advantages of your product, then you are that much closer to the sale.

The customer's way of getting to the bottom line. Customers who object to particular aspects of your product or service really want more details in order to make a buying decision. Objections move the sales process forward.

Expressions of the customer’s interest and involvement. These show that the customer is moving closer to the sale. It is a buying signal! When was the last time you took the time to object to a product you were not interested in?

5.2.2 Handling Objections

“If a salesperson can anticipate customer objections and provide credible answers, he or she will close more sales.” Joe Rickard

Many Sales people struggle with objections, especially those who are new to the profession. They do not know how to handle objections. They get flustered when a customer or prospect states an objection. Some simply fear even hearing an objection. Sometimes this prevents them from contacting a customer at all…“oh, he’ll just say our price is too high, he would rather have the engine repaired at a non-franchised workshop. Why should I call him?”

Objections take many forms: price concerns, competitive concerns, and people not interested in your company’s products, and so on. These objections are the bumps in the road which prevent sales people from ultimately winning a customer’s business. Without an effective strategy to work through objections, Salespeople find themselves facing insurmountable obstacles assuring them of major struggles and most likely, failure.

47 | P a g e

So, how should you handle objections? There are many ways to handle objections, but here is one very easy framework Sales people can use when they encounter objections.

5.2.3 Define the customer objections and define a proposal to address customer objections

Listen Carefully

• Hear the prospect out.

5.2.4 Confirm Your Understanding of the Objection

• Validate the Problem:

• Clarify and Classify:

• Use confirmation questions:

• Ask if there is anything else:

• Try to distinguish between genuine objections and excuses.

5.2.5 Acknowledge the Objection

Acknowledging the objection tells the customer a few things:

• You listened to their concern:

• Their concern is understood:

• It’s fine for a customer to have concerns:

• Concerns do not have to be confrontational.

Example – price resistance

Customer: “Your price is too high.”

Sales Person: “I understand your concern about the price of our product and your desire to get the best value for every cent you spend.”

When Dealing with Price Resistance:

DO:

• Add value with a cluster of satisfactions:

• Point out the relationship between price and quality

• Explain the difference between price and cost

• Employ the presumption of exclusivity

o Stress your product's exclusive features

o Identify extras which come only from you

o Sell quality, exclusivity and differential features.

• Sell Down:

o All prospects have a buying range

48 | P a g e

o Show the best first, and then let the prospect reduce price by removing features or lowering quality.

DON’T:

• Apologize for the price

• Make price the focal point of your sales presentation

• Become demanding

• Become defensive

• Become hostile.

5.2.6 Align with the Customer

This means you need to put yourself in his or her shoes and relate to their concerns. Aligning with a customer shows that you and the customer are more alike than different. It shows that you would have the same concerns if the tables were turned, and demonstrates that you have their best interests at heart. Aligning with the customer focuses on creating a long term relationship, not just trying to push your product. Continuing from our previous example:

Salesperson: "….In fact, I am also very particular about getting the best value for my money. It’s important that I’m not over-paying for what I get."

Acknowledging and aligning with customers is very important. It allows the customer to stop and listen to what you have to say. So many sales people try to overcome the objection by indirectly telling the customer that he or she is wrong, or bullying the customer into agreement. We have never seen this work effectively. In fact, it usually alienates the customer and creates a bad feeling which will be shared with other potential customers.

Something to think about: Even if the customer is wrong about his or her objection, would he or she concede that objection to you if you had not acknowledged and aligned first? We doubt it. Think of a time when you have argued with your significant other. Even if you realised he or she were right during the course of the argument, you might not concede. Sometimes ego and the desire to win interfere, and people are not objective

5.2.7 Counter Proposal

This is your counter proposal to the objection. There are many different ways to counter objections. Some counters are: clarifying the objection, presenting specific benefits, probing for other objections/benefits, pre-closing, using an example, and asking the customer for the solution. The appropriate counter depends on the salesperson’s style and the customer situation.

Here are examples of counters. Here again, these counters are to be used after you acknowledge and align, not before, or on their own.

49 | P a g e

➢ Clarify - "You mentioned that our price was too high. Can you give me a little more information on that? Such as, is that because of what you’ve paid in the past? Essentially, how did you arrive at that?"

➢ Benefits - "Although our price might be higher than the competition’s, our value to our customers is also much higher. Let me explain..."

➢ Probe for other Objections/Benefits - "What are your other thoughts on our proposal? Are you concerned about any other specifics in regards to it?"

➢ Pre-closing - "If we are able to alleviate your concerns about our price to your satisfaction, would you buy our product?"

Using an Example - "Mr, Mrs Miss. Customer, what car do you drive? I’m sure that it is not the cheapest car you could have bought. Why did you choose to buy that car instead of a cheaper car?

Salesperson “Well, those are the exact reasons our customers choose to buy our product as opposed to those of our competitors. We believe that the key for all of our customers is the benefits and value our company brings to them."

Customer solution - "Mr, Mrs, Miss Customer, do you have any possible solution in mind which might help us alleviate this concern?"

The counters mentioned can be used together or separately. You can combine any of these depending on the situation, and the benefit you feel it will bring to the conversation.

➢ Ask

Ask the customer if you have answered the objection, if he or she has further questions, if he or she understood your points, and/or if he or she is ready to move forward.

This gives you a true test of whether or not you were effective in discussing the objection/s. It also allows you to plan your next course of action with the customer. It is really easy to feel what the customer is thinking when you ask him or her directly. Do not be afraid to do so.

Handling objections comes down to having a strategy for continuing the conversation, remaining confident, and being optimistic during the course of your conversations with the customer. You will be amazed at the results when you put all of these together.

50 | P a g e

5.3 Dealing with Unresolved Objections and Concerns (SO4 AC3)

An unresolved objection or concern is something which you do not have the authority or

willingness to handle. Sometimes it is also the case that you do not have the knowledge to deal

with such an objection or concern. Using your knowledge as an excuse once is acceptable, but

it is your responsibility to ensure that you up-skill yourself so that you will not be in that

situation again.

5.3.1 Referral

It is all good and well to refer an objection or concern to someone who has the authority to

deal with it but remember that your negotiation process is being delayed as long as this

concern remains unresolved. Thus, it is extremely important to you ensure that you refer the

objection or concern to the correct person so that it can be resolved quickly and effectively in

order for your negotiation to continue.

Note that you are only referring the objection or concern and not the responsibility to the

other person. The responsibility to ensure that the concern or objection has been resolved

satisfactorily for the customer is still your responsibility. You need to ensure that the

resolution is done quickly, accurately and to your customer’s satisfaction.

5.3.2 Communication

Your communication in the referral of an objection or concern is two-fold. You need to communicate with:

• The customer:

51 | P a g e

• The person to whom you refer.

The customer needs to be kept up to date on:

• The name and position of the person to whom you referred the concern or objection:

• When an answer can be expected:

• Who will provide the customer with an answer, you or the person to whom you referred the concern or objection:

• When the customer can expect to hear from you again.

The person you referred the concern or objection to needs to have:

• An accurate explanation of the concern or objection:

• A reason why you cannot resolve it on your own:

• When the customer is expecting an answer:

• Who needs to answer the customer?


• The method of clarifying and addressing concerns and objections of customers described in terms of organisational policies

• Addressed customer objections and concerns formulated in terms of company policies and procedures

The procedures to deal with unresolved objections and concerns described in terms of company policy.

52 | P a g e

SECTION 6: CLOSE THE DEAL AND OBTAIN CUSTOMER COMMITMENT

Specific Outcome 6: Close the deal and obtain customer commitment.

Assessment Criteria

1. The Customer's commitment to purchase is formalised and a cause of action agreed according to organisation policies and procedures.

2. The ability to secure a future relationship with the customer is demonstrated in terms of company policies and procedures.

3. The process to distribute the different documents is explained according to company procedures.

6.1 Introduction Closing the sale or gaining the commitment is part of the sale process. However, many sales professionals and service professionals view closing more as a singularity instead of a process. This results in less sales and more frustration. Sound familiar?

Yes, there are specific skill sets required when dealing with this step in the Sales process - closing or gaining commitment. However these skills should be used in conjunction with the other sales skills and must align to the overall sales process.

The key word here is sales process. When a salesperson uses a proven sales process, which takes him or her through the buying/selling process, then closing is really a sub set skill, and not the most critical skill.

Unfortunately, many in sales forget the most critical skills - developing a relationship. When you have a relationship with someone, and you have taken the time to listen and understand that person, you will actually be making soft closes or trial closes during the entire sales process.

A solid relationship should exist before you sell anyone anything. People buy from people, and only then do they buy the products or services. The Internet creates exceptions to this statement and there are exceptions to many rules. However, most people buy from other people, especially when that product or service is critical to their business or to their own personal life.

If you as a sales person have taken the time to:

• Fact find accurately and truly dig for those unstated needs

• Educate the buyer to those needs and how your product or service meets those needs

• Demonstrate your subject matter expertise with confidence and clarity of purpose

• Be authentic

53 | P a g e

• Separate the stalls from the objections with your negotiation skills

• Overcome any objections by negotiation and clarification.

Then closing is simply a matter of asking: Where do we go from here?

6.2 Obtaining a Prospective Customers Commitment (SO6 AC1) Once the customer’s desire for the product or service has been increased, the Service Advisor needs to ensure that he or she gets the customer’s commitment. Depending on the nature of the product or service, the Service Advisor now needs to present or demonstrate the product to the Customer. Often the product is not visible, for example, a reconditioned engine or gearbox, and therefore the skilled Service Advisor needs to focus on the inherent benefits of such a product.

In negotiations with the customer, you created the inclination to buy. By providing all the information and dealing with logical arguments, all of this was in anticipation of a successful sale. However, you have a last hurdle to overcome. You have to produce a buying action.

6.3 Closing Techniques To produce this action you need a good closing technique. There are times when the prospective customer decides, without the salesperson having asked for or attempted to close the deal. Such events are not the norm, but they do occur when the salesperson has really aroused the prospect’s sense of need and buying desire through a perfect understanding of the problem/s and excellent sales talk.

Generally, a decision to buy is one the prospective customer resists making. It might be so difficult for the prospect that it cannot be done without help, or it might be an either/or decision. Either go without this, in order to get that.

The most skilful closing technique never brings a buying decision unless the salesperson has aroused the customer’s desire to purchase. It produces a buying action when the prospect is already seriously considering the proposition.

Even though the prospect might feel comfortable with the salesperson, and see the problem, they might be reluctant to purchase. Getting the prospect to take action is essential. It saves the salesperson time and allows the process to get underway.

Closing is the activity undertaken by the salesperson to get the order signed and the

transaction finalised.

54 | P a g e

6.4 Closing the Deal and Securing Customer Commitment Every kind of presentation will lead to a logical point at which you can close. However, there can be moments in the presentation which are also psychologically right. One prospect might already be sure of what he or she wants and needs little convincing, while another prospect might be convinced half way through the presentation because of a broader information base.

If you have successfully negotiated with your customer, you have created the inclination to buy, by providing information and dealing in logical arguments, all in anticipation of a successful sale. The final part of the deal requires a buying action on the part of the customer. To produce a buying action, you need to practise a strong awareness of the customer’s position and use a good closing technique when you see that the customer is seriously considering your proposition.

It is important to observe the four stages of closing:

• Buying signals (discussed earlier):

• Trial closes:

• Presenting a close:

• Questioning the close if it fails.

55 | P a g e

It must be understood that the buying signals listed earlier in the learning unit might not mean that the customer is certain to buy. A buying signal might simply be an indication that the customer is, at this stage, positively disposed to the product and the sales intervention. Therefore, the salesperson must test the certainty of the sale by using a trial close. A trial close involves presenting a question to the customer with the aim of establishing whether he or she is ready to conclude the purchase. There are typically two forms of questions which can be used as a trial close. They are:

• The direct question - this involves asking for a direct answer, for example, “ When would you like delivery?”

• The alternative question - involves offering the customer two possibilities from which to choose for example, “Which do you prefer, the normal or the steel belt radial?”

When to use a trial close:

• When observing a positive buying signal

• After making a strong selling point during the presentation

• After a customer has accepted a major benefit

• After successfully answering a customer’s objection

• After the presentation, before suggesting a demonstration drive (discussed in another learning unit)

• After the demonstration drive (discussed in another learning unit).

If a trial close fails, simply go on selling and try again at a later stage. Trial closes are non-threatening, and your chance to close the deal when the customer is ready is increased by your continual use of this technique. Indeed, you should Always Be Closing

After trial closes, there are four other closes which can be used to seal a sales deal. These include:

• The sharp angle close

• The assumptive close

• The special concession close

• The benefit summary close.

The sharp angle close is used when something is stopping the prospect from going ahead with the deal. It could be a misunderstanding about cost, trade-in or specifications, or a doubt about something with the vehicle or your organisation. It is important to ensure that you provide the customer with all the relevant information and allay his or her concerns in order to secure the sale.

The assumptive close is used when both the prospect and the salesperson assume that the purchase will take place. During the sales interaction, the customer might have given you strong buying signals that they intend purchasing the vehicle. When you can safely make this

56 | P a g e

assumption, use a closed question, for example, “When would you like delivery?” to secure the deal.

The special concession close involves a situation where the dealership might have a special financial package on a model range or an accessory on offer with every purchase for a certain period of time. Highlighting how the customer can take advantage of a special offer can help secure the deal.

The benefit summary close involves summing up the benefits and re-emphasising the crucial points of agreement. It can act as a reminder of all the benefits accepted by the customer during your presentation.

➢ A Successful Closing

To close a sales deal successfully, you need to maintain a positive attitude, explain the details to the prospect clearly, and attend to the signing of the deal. After a successful close is done, you can move the customer to signing the necessary paperwork . You will be one step closer to celebrating a deal well done!

➢ When a Close Fails

If the close fails and you get ‘no’ for an answer to your sales proposition, question it. Politely ask why the customer is not going to agree to the sale or why he or she does not want to conclude the sale at this point. Often, the failure of a close is not that the customer does not want the product, but because of:

• Insufficient information to make a decision:

• A misunderstanding:

• An incorrect perception:

• Procrastination on the customer’s part.

Ask closed questions to determine the reasons for the non-sale. By politely questioning the reasons behind your customer’s reaction, you will better understand his or her reluctance to purchase. You will also be able to handle the stated objections, perhaps attempting to close again, or learn in what ways you can improve your future presentations.

Never behave in an aggressive manner, or put undue pressure on the prospect to say yes to a sale. Your job as a salesperson is to help them buy the correct product, not pressurise them into a sale that they might end up regretting at a later stage. By handling the demonstration and close professionally, you will be securing a future relationship with your prospect and perhaps even ensure their long-term business.

57 | P a g e

6.4 Securing a Future Relationship with your Customer (SO6 AC2)

Most professional-to-client interactions involve little if any commitment to each other beyond the current deal. The prevailing principle is “buyers beware.” Mutual guardedness and suspicion exist, and the interaction is full of negotiation, bargaining, and adversarial activity. This is the way many professionals and their clients want it to be. They want a transaction and might not yet (if ever) be ready for relationships. Rather than acting to build relationships, both sides might have to put the brakes on initially.

After all, relationships require making a commitment and incurring obligations. They also mean focusing and being selective: You cannot chase after every opportunity if you want to build relationships. To be good at relationships, you must have patience and know how to trust others.

Moving from a one-night-stand (transactional) mentality to a romance (relationship) mindset is not about incremental actions, but requires a complete reversal of attitudes and behaviour. One approach is not necessarily better than another, but there is a real choice to be made.

➢ Why are Future Relationships Needed?

What will distinguish your Dealership from your competition or other dealerships? Can you still only emphasise your core business?

You should follow the simple philosophy of getting close to your customers. The relationship you have with your customers should drive everything you do. The quality of work should be approved, and then the customer expects this at a reduced cost.

Customer relations, or customer service, are the front line between an organisation and its customers. How customers are initially greeted and treated can influence their decisions to do business with your company. Effective customer relations strategies include listening skills, oral and written communication, analytical and problem-solving skills, and teamwork based on the organization's commitment to meet customer needs while making customers feel welcome and valued.

Relationships concerned with a client’s lead to many benefits: less price resistance, more future work, more referrals to new clients, and more effective and harmonious work relationships with the clients.

58 | P a g e

6.5 Completing the Paperwork (SO6 AC3) Once the customer says yes, the deal is closed but still not completed. There is still the official paperwork which must be filled out and submitted. Whether just a simple invoice, an offer to purchase, or the registration documents, these must be accurately completed as per organsational procedures. The terms and conditions of the sales transaction must be clearly spelled out for the customer, and all documentation must be completed legibly and accurately, reflecting the price, discount and/or trade-in price agreed. You must also ensure that all relevant customer documents are obtained (for example, proof of identity, bank statements if neccesary and so on) before the paperwork is submitted for approval. When the paperwork is properly completed, it will further enhance your relationship with your new customer.

Each company has its own formal way in which an agreement is documented. Ensure that you are familiar with the documents used, how they are to be completed, where/to whom they are submitted for approval, and where they are stored. Being up-to-date and possessing relevant knowledge on all documentation is essential to any successful sale. The same is true of the terms and conditions which form part of any sales agreement. It is your responsibility to familiarise yourself with all these documents. Discuss these documents with your manager if there is anything you are unsure about.

It is important to be familiar with your organisation’s dedicated documents, laws that govern sales transactions, know the details and how to use them, as well as how to store them according to policy and procedures.


• Formalising the customer’s commitment to purchase and agree a cause of action according to organisation policies and procedures:

• Demonstrated the ability to secure a future relationship with the customer in terms of company policies and procedures:

• The process to complete documents according to company procedures.

59 | P a g e

SECTION 7: MODULE CONCLUSION

In this module, developing your Business by creating selling opportunities, we discussed the importance of identifying early buying signals, negotiating, presenting and closing a sale. You need to keep in mind that the following fundamentals need to be in place to be a successful service advisor.

Initial Contact

First impressions might not always be accurate, but they do create a lasting influence on customers. Friendly greetings and a sincere interest in customers’ needs create a basis for solving problems and meeting customer needs.

Positive Impressions

Customers expect to have their concerns addressed quickly and efficiently. Customer relations staff must be knowledgeable and courteous. Bad experiences stay with customers. Front line employees can make or break customer relationships.

Listening Skills

Listening skills help customer relations staff determine how to approach each customer's needs and meet their expectations. Using listening skills to identify problems and determine how to help and calm irate customers can establish customer confidence.

Effective Communication

Customer relations depend on effective communication. Problems can escalate when communication fails. Communicating clearly, both verbally and in writing can prevent misunderstandings and misinterpretation of information by customers and co-workers.

Problem Solving

Problem solving and analytical skills support customer relations. The ability to listen, interpret and act appropriately when addressing customer needs is essential to successful customer relations. Knowing when to escalate customer concerns to the next level of customer support staff is an important aspect of problem solving.

Teamwork

Working together to meet customer needs establishes excellent customer service and provides learning opportunities for customer relations staff. A customer relations department counts on support from all employees and departments when necessary.

Follow-Up

Follow-up can help re-establish customer confidence after resolving major problems. Calling customers to ensure their satisfaction lets customers know that they are valued.

60 | P a g e

During this module we covered:

• The current state of an industry

• Identified early buying signals and acting thereupon

• Negotiating and/or agreeing to the terms and conditions of the sale

• Preparing quotations according to organisational standard policies and procedures

• Handling and dealing with customer objections and concerns

• Closing the deal and obtaining customer commitment.

BIBLIOGRAPHY

1. www.iol.co.za/business-news/motor-sector/ 2. www.rgt.co.za 3. INSETA Learning Material 4. http://www.businessdictionary.com/definition/corporate-policy.html

5. http://www.businessdictionary.com/article/570/basics-of-negotiation-for-beginners/

6. http://en.wikipedia.org/wiki/Professional_writing

7. http://www.selfgrowth.com/articles/definition_closing_sales.html

8. http://www.ehow.com/facts_4912614_definition-customer-relations.html

http://www.iol.co.za/business-news/motor-sector/

http://www.rgt.co.za/

http://www.businessdictionary.com/definition/corporate-policy.html

http://www.businessdictionary.com/article/570/basics-of-negotiation-for-beginners/

http://en.wikipedia.org/wiki/Professional_writing

http://www.selfgrowth.com/articles/definition_closing_sales.html

http://www.ehow.com/facts_4912614_definition-customer-relations.html

conduct sales and support services

Documents