Saturday, March 8, 2008

Appraise This!

There are numerous pros and cons to trading in your former vehicle at a dealership when purchasing a new one. If you decide in favor of trading, here's an important tip that'll help you during the appraisal process...

Turn Around!

That's it! Just turn around and face away from the person doing the appraisal!

Here's the psychology behind what THEY do during the appraisal. The Used Car Manager will do a walk-around of your car, looking for the slightest dent or ding or flaw in your soon-to-be-former pride and joy.

If he finds anything wrong (or, sometimes, even if he doesn't), the Used Car Manager will pause and grunt or snort or give other indicators of displeasure.

His goal is to bait you into believing you're trading in a pile of junk that will be an embarrassment on his lot. He may ask if your car has been involved in an accident. Even if you truthfully answer "no", he might respond with a "huh!" or "reaaaaaally?" that makes clear the fact that he doesn't remotely believe you.

The point of this entire exercise is to plant seeds of doubt in your mind about the true worth of your old car. Then when you get the dealership's low-ball offer, you'll glumly accept it without protest and they'll make another $1000 or more off you on the deal!

So the absolute worst strategy during the appraisal (and also, unfortunately, the most common) is to follow the person appraising your car around and subject yourself to their critical eye and comments.

Now here's the psychology behind what YOU are going to do. You're simply going to remove yourself from the appraisal process! If you can't see or hear their real or imaginary criticisms, then your mind can't be affected by them.

Heck, when I bring a car in for appraisal at a dealership, not only do I turn around and face the other way, I also walk many steps away and pretend to make a call on my cell phone. I don't want to see or hear anything from the Used Car Manager that'll make me feel my old car is worth less than I know it to be worth.

One of my clients told me she now does the same thing when she sells anything of value--whether an unwanted appliance or when she holds a garage sale. She turns away while they look over whatever she's selling. Then when they approach her and offer a lower price because of some flaw or another, she simply smiles and repeats the original price.

Try it and discover for yourself how well this works for you...then share your results in the Comments section if you desire!

Show Me The $

Top sales professionals are well aware of the psychological power and emotional symbolism of the Dollar Sign...and so they avoid it all costs (heh-heh!) during negotiations.

There's a subtle, yet significant, difference between this...

$2500

...and this...

2500

The first represents a real amount of money--a direct reflection of your bank account or credit.

The second is more abstract. Without the "$" in front, it's just a number.

Few people other than professional mathematicians can really conceive of a pure number without reference to anything else and hold it fixed in their minds. A number all by itself has less meaning--and, most importantly--less emotion for us. And if a sales pro can separate your money from your emotions, they'll have a better chance of making a sale at your expense.

Disassociating customers from the actual value of their money is a cornerstone of Mickey Bucks at Disney's theme parks. (It's not really money...just colorful pieces of paper with Mickey Mouse's picture on 'em!) And it's the foundation of the Chip system in Las Vegas and other casinos worldwide. (Ordinary people who wouldn't dare plop down $150 in cash on the outcome of a single spin of the wheel think little about wagering a little pile of white, red and blue chips in amounts that can be staggering.)

Here's how to use the Disappearing Dollar Sign to your advantage on your next major purchase:

At some point in your negotiations, your salesperson will make an offer (it could be their first offer, it could be the twentieth; the principle remains the same) in writing. They might push a piece of paper in your direction with numbers such as this on it...

22,780

Or perhaps this...

1500 down
390/month

If your salesperson knows what they're doing, they will have already placed a pen on top of the written offer for you to sign it.

Now, they're trained to say nothing at this point. Their entire goal is to wait you out in silence and hope you to sign the offer, thus closing the sale. 

As will often be the case as you discover how to turn the sales process around in your favor through reading, "How to Buy A New Car at Used Car Prices!", your goal here is exactly opposite from the person trying to sell you something!

YOUR GOAL in this moment is merely to re-associate yourself with the value of the money on the offer so you can make the best buying decision for yourself.

So you pick up the pen. (As you do, out of the corner of your eye note how your salesperson will often literally hold their breath in excitement at the prospect of closing the sale!) Then you simply add the missing Dollar Signs next to the appropriate numbers on the page, like this...

1500 down
390/month

Then you put down the pen and repeat the offer, out loud, using the word "dollars" when you do so.

"Three hundred and ninety dollars a month." 

This may well be a Great Deal...or further negotiations may be required. Either way, though, NOW you know exactly what you're getting into. 

A nice side benefit from this is that you'll fry your salesperson's brain a bit, which is always fun! You'll have lifted the curtain on their little Disappearing Dollar Sign trick, and also bought yourself some time to consider the deal--since your salesperson will not usually have been trained how to react in this situation. 

And once again you'll be exactly where you want to be--in charge of the buying process, rather than a helpless victim who is being sold something!

Feel free to use the Comments section below to share with other readers examples similar to Disney Dollars or casino chips (the technical term is "Replacement Currencies") where businesses switch out your actual money with some kind of symbolic representation in order to influence you to spend more!

Friday, February 15, 2008

QUESTION: What's the Best Day to Buy A Car?

ANSWER: The last day of the month!

Like most sales organizations, car dealerships are geared towards monthly results. Quotas, bonuses, customer incentives and (my personal favorite!) bragging rights as the Top Producer are all calculated month by month.

When I was a car salesman, I enjoyed the increasing urgency in the air as each day ticked closer to the end of the month. This was where the rubber met the road--literally, in our case!--and the last few sales were made that could mean the difference between a decent month and a great one for both myself and the dealership as a whole.

On the final day of the month, the entire focus becomes Quantity over Quality. From the Sales Manager on down, the goal is push cars out the door, the more the better! There's no time to squeeze every last dime out of a deal...there's barely time to worry about making a profit at all! "Just get another unit on the road" is the mantra.

So for One Day Only, on the final day of the month, selling cars becomes a numbers game. The higher the numbers, the happier everybody at the dealership will be come the first payday of the next month.

There's no logical reason to buy a new car on ANY other day except for the last day of the month--where just showing up will take you a loooooong ways towards getting the best deal of your life.

Of course, not everything any of us do is entirely logical!

In future posts we'll explore in some detail how Buying is usually an Emotional Process and rarely a Logical one. And we'll also learn some specific steps we can take to use that to our advantage and turn the tables on the person selling us something so we do, indeed, end up buying our new car at used car prices!

Most businesses that pay their salespeople commissions operate on an identical month by month paradigm...including health-clubs, advertising sales and insurance.

Feel free to use the comments section to mention other businesses where readers are more likely to get a better deal by going in on the very last day of the month!


One Step at a Time...


Edwin Moses was arguably the greatest American hurdler of all time. A multiple Olympic gold medalist and world record holder in his chosen event, the 400m hurdles, Edwin Moses holds another record that's unlikely ever to be bested...

In 1977, early in Edwin Moses' career, he lost an international race to a rival hurdler from Germany. The following week, Moses ran against his rival again and won handily. Starting with that meet, Edwin Moses went on to win 122 consecutive races...going a staggering 9 years, 9 months and 9 days before his next loss!

An amazing accomplishment, to be sure, but what's even more interesting to us here is his process

And that process was fairly simple. He never worried about winning a given 400-meter race. Instead he focussed on excelling at a series of shorter, more manageable distances.

Before each race, Edwin Moses would walk the track and put a piece of black tape on every 3rd or 4th hurdle. When the race began, Moses didn't think about reaching the finish line before everyone else. Instead his goal was merely to run as quickly as possible to the first hurdle with black tape on it.

Once he reached the marked hurdle, Moses imagined in his mind that the starting gun had just fired and the race was just now  beginning. So his goal then became simply to run to the next marker with all the blazing speed he could muster.

And so on, all the way around the track.

At each meet, Edwin Moses ran a series of 50-60 meter races. By winning each of these little races in turn, he was able to win the overall race as well--122 times in a row, against the best hurdlers of his generation! Nearly a full decade without a loss...and all as a result of focusing on smaller accomplishments within a larger framework!

Setting major goals for ourselves can sometimes feel intimidating. Whereas breaking any goal down into smaller "races" and simply excelling at each of these seems to me like a sound strategy to adopt in many areas of life, from losing weight...to cultivating a vegetable garden...to, say, mastering the techniques and strategies for buying a new car at used car prices!

Feel free to share any examples from your life in the comments section where you achieved a larger goal by breaking it down into easier-to-accomplish steps! 

Wednesday, February 13, 2008

Location Anxiety...

As a Junior at the University of Texas at Austin I was invited to a Halloween party at the house of some friends of my friends. I got all dressed up (as a Pirate...argh!) and found my way to the private home.

None of my friends had arrived yet and I didn't know anybody there and didn't know where anything was in this house, so I decided to take refuge by the beer keg until somebody I recognized showed up. After getting a bit lost in the complicated layout of the house, I finally spied a living room that opened up to the backyard--where, presumably, the Holy Grail of the beer keg would be located.

I walked through the living room, where a dozen or so students lounged on couches and chairs. I was quite shy in my younger years and so I studiously avoided even looking at any of these strangers as I stepped outside to the--

BAM!

I walked right into the sliding glass door that led outside!

The door was so transparent that I thought it was wide open...but, alas, no! I bounced half a step back as the students in the living room started chuckling and laughing. At me. They were laughing at me.

There are few greater pains in life than being humiliated in public!

Still without looking at any of the laughing students, I opened the sliding glass door, went outside and closed the door behind me. Without a moment's hesitation or doubt as to the course of my action, I hurried across the yard, climbed over the wooden privacy fence, got in my car and drove home for the night. True story.

A turning point in Sigmund Freud's work came when he discovered that human beings have a strong DESIRE for Variety in their lives--to meet new people and go to new places and feel new feelings. But often overpowering this desire for newness was our innate NEED for Familiarity--to see people and places we've already seen before and therefore feel comfortable around.

This is one reason why more people claim to WANT to travel than actually DO travel.

Even before beginning my studies into the Psychology of Buying, I was already well familiar with the concept of Social Anxiety--the life-long battle we all face of Desiring to connect with new people but Needing to stay close to our comfort zone so we don't end up doing things like, say, walking into a sliding glass door in front of strangers!

But one of the more unexpected discoveries I made during my journey was that humans also experience Location Anxiety.

You see, it's not just meeting new people that can make us anxious, but it's ALSO our nervousness about going into new and different locations where we've never been before.

Most of us are not conscious of this deeply buried anxiety. Yet we are biologically hard-wired to be wary of any new environment. Because you never know what's out there! There could be a sabre-tooth tiger or hostile band of Cr0-Magnons or even a smiling car salesman lurking just behind the next boulder!

Location Anxiety is one reason why so many of us have regular "haunts"...familiar restaurants or shops or night spots where we go regularly because, well, we've already been there before and we know what to expect.

While most people will certainly venture out to new places now and again, it is fairly uncommon for them to do this all the time.

Generally we'll visit a new place of business...and then return to same places we're already familiar with for a while before venturing out again. Even if the food/service/products aren't the best in the world at the locations we visit frequently, at least we already know what to expect.

So, again, we DESIRE Variety...but we NEED Familiarity.

What does any of this have to do with buying a new car?! Quite a lot, actually! 

Some years back I ventured into a Ford dealership here in Austin, TX and bought a station wagon for my then-wife. A year or so later, I returned and leased an Explorer for myself. When my wife and I eventually split up, I returned again and bought her a mini-van. The lease on my Explorer expired...and I made the bold move of returning yet again and leasing another Explorer.

For those keeping score at home, that's 4 Fords in a row!

Now, Ford makes a fine product and we got great use out of all these vehicles. However there ARE many other excellent car manufacturers out there. Yet I continued to buy Ford after Ford...without ever asking myself why?

It was only when I combined Freud's theory of Variety vs. Familiarity with the concept of Location Anxiety did I realize that it was NOT a particular make of car I was buying, rather it was my increasing Familiarity with that particular car dealership that drew me back year after year.

That dealership--conveniently located less than a mile from my home--just happened to sell Fords. If it had been another brand of car, then once I started buying there I might well have stayed with that other brand for 4 cars in a row...or more!

I finally broke the cycle and haven't returned to that dealership in years. But even now, in my mind, I can still picture the entire layout of the place with crystal clarity. I remember exactly the location of the receptionist's area...where to find the bathrooms...the finance manager's office...the sales manager's desk...right down to a choice spot to people-watch (on a bench just outside the service bays) while waiting for my new car to be prepped.

For a couple of years before I finally "broke up" with my dealership, I craved a new driving experience...but the familiarity of the place kept drawing me back again and again.

It's well-known that the vast majority of people rate buying a new car to be a seriously stressful experience. The goal of the "How To Buy A New Car at Used Car Prices" and the forthcoming ebook of the same name is to reduce my readers stress when purchasing a new vehicle to less than zero.

And one step in that process of reducing your stress is to at least consider the idea that one of the initial causes of anxiety when you decide to go in and pull the trigger on a big purchase is the physical business location itself.

Chances are when you go in to buy a new car you're entering an environment you never been in before in your entire life.

Car dealerships can be vast places with complicated layouts and dozens of sales offices. Or they can be a one-room converted mobile home on the back of a used car lot. Either way, it's foreign terrain to you.

So what can you do about that in advance? Well, there are a couple of simple ways to become familiar with a dealership beforehand and reduce your potential Location Anxiety.
  • Check out the dealership's website. Many of them proudly post photographs of their showroom and lot. Take a moment to really study these pictures and develop a mental map of the layout.
  • Visit the dealership itself, outside of normal business hours...in the evenings or on weekends. Stroll around the lot and take long, hard looks at the make and model of vehicle you're most interested in. Walk up to the showroom itself--customarily a building with two or more walls made of glass--and look inside. Just absorb the environment a bit into your mind.
The crazy thing about either of these strategies is that they actually WORK!

Deep inside your unconscious mind are complex filters that examine every new person--and new physical environment!--you may encounter. These filters decide whether what you're seeing is a Match (in which case you can relax) or a Mis-Match (in which case your defenses, and attendant stress level, go up somewhat until your mind can be convinced that there are no dangers present.)

Just the fact of looking at photographs of a dealership--or walking the lot and peeking into the showroom--provides enough visual references for your brain that when you do go in for your new car purchase it will be labeled as a "Match" and your mind can focus on other, more important topics.

Such as...getting the very best deal for yourself!

Can you think of any times in your life when you might've had Location Anxiety about visiting a new place of business or even a someone's house?