Some objections you may face from elderly customers when offering an Extended Warranty on their new(er) vehicle may sound something like this:
|  |
- This is the last vehicle I will ever own, I don't need a warranty
- The car may outlive me, I don't know if I will be driving for another day, another month or another year, I don't need a warranty
- I trade my car every few years, I don't need a warranty
| |
To overcome these delicate objections, you need to be
inquisitive and get more information with further questioning. Your
customer is handing you an easy disguise to the real objection which is typically "I don't want to spend any more money today". Be sincere. To do that, you must understand that your questions may not always lead to a sale. You want to ask questions that lead to certain future outcomes:
| |
- What will the customer do with the vehicle
once they are no longer able to drive? For example, will someone in
the family be gifted the car who will be responsible to take them on
their errands? Perhaps a younger grandchild who is deserving will be
gifted the car. They certainly don't want the future family owners to
be burdened with unexpected repair costs. If they purchase an extended
warranty for the car now, at today's prices, they will appreciate the
peace-of-mind later when they no longer own the car but someone in the
family does.
|  |
- Once their ownership time has come to an
end, what will they do, sell the vehicle? A vehicle will sell much
faster in the private market if it has a valid extended warranty on it and
a customer will pay more for that vehicle. Ask your customer, "If you
were in the market today for a used vehicle, would you pay a little
more for a car that had a comprehensive extended warranty on it? If
you were comparing two like vehicles, which one would be more
attractive to buy, one with or without a comprehensive extended warranty?" It's a fact, as a vehicle ages, it is more likely to need mechanical repairs.
| |
- If it is a concern to spend the extra $
today, then it's imperative to break down the cost of the warranty in
terms of mechanical repairs. Seek some concrete evidence from your
service department, ask them for copies of mechanical repair warranty claims
(for privacy reasons, be sure to remove all information about the
customer). That's right, show your customer how much money the
warranty company spends on various repairs. Make sure your invoices
are from different vehicle models and for different types of repairs,
from a basic alternator, to the mid-summer crisis of having no air
conditioning in extreme temperatures and facing an unexpected air
conditioner repair while on vacation (ouch!), to the absolute misery of
an engine or transmission failure, putting a major kink into their
budget!
| |
- An alternative to tossing copies of
warranty repair work orders in front of your customer or displaying
them in your Evidence Binder, you may prefer to show your customer the
cost effectiveness of the extended warranty by presenting a breakdown
of the hourly service rate plus parts costs compared with the
warranty cost. This is a much more detailed approach but very
effective and commonly used as a technique to overcome extended
warranty objections. If you would like more explicit details, let us
know by clicking "Add Comment" below.
| |
The idea here, is to present a visual experience
when overcoming the objection. These will apply to many situations
other than only elderly clients. Imagine what could possibly happen if
an unexpected repair bill faced your family. What would be the
worst possible time for that unexpected bill to occur? Create a story
and a picture of what that would be like for you and use it to
overcome objections. You see, if you could imagine an $800 alternator
repair causing havoc in your household; if you could imagine the crisis
on your hands when your vehicle breaks down on a road trip; if you
could imagine the lean Christmas gift-giving if your engine or
transmission pack it in right before or worse, during the festive
season, then you can express that major concern sincerely! This becomes much more than just a story, it becomes a potential fear within yourself...people buy for two primal reasons: to gain pleasure and avoid pain.
By far, THE most compelling emotion that drives sales is FEAR. If you
can sense the FEAR of not purchasing this product, your customer will
sense that sincerity in you and there is a very good chance that they
will buy what you are offering!
If you have objections that are a challenge for you to overcome and you
would like some suggestions, let us know by clicking "Add Comment"
below!
| |
What's YOUR Willingness to be a Top Performer?
| |
Comments