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Failure to Authorize? More like Failure to Communicate!

May 13, 2011 By Captain Reman Leave a comment

Special thanks to my friend and customer Don Saffioti of Clifton, NJ for this great tip!
Captain Reman:
Here’s my best response to a customer who is about to FTA on you:
If the customer says, “The car’s not worth it…” or, “I’m going to get another car…” I ask
“Let’s examine the alternatives. What will you do to replace this vehicle?”
If the customer tells me that they are going to buy another used vehicle, I state “you already own a used vehicle” and then I quantify the cost to buy a new car versus what it will cost to repair their current car.
I explain that a completely repaired vehicle with a warranty is most often less than the cost of purchasing a “new” used car.
Catch phrase:  “Why buy a headache, when you already own one at no cost!”
After all the repairs, if you add up the costs, you’ll find it cheaper to fix your vehicle and have warranties rather than buying another used vehicle.
If the customer tries to defend their decision with something like, “Well, I planned to buy a warranty on the replacement vehicle…” I show them that used vehicle warranties are not complete and do not pay for the repairs in full. Most of the time, extended warranty companies ship in used parts and will cover only part of the labor. Plus, the customer will likely have costs with each repair (deductibles and the difference of new parts vs used parts plus the difference of the labor schedules).
The bottom line is this: Many customers balk at the thought of investing a thousand dollars into their “old” car…but it’s most often their best course of action. I always act in the best interests of my customer – if a car is not worth fixing, I’ll tell them…but that’s a rare occurrence these days.
Don Saffioti, AAMCO Transmissions Clifton, NJ
53 years in auto repair services
Owned and operated  4 centers
http://www.aamcocliftonnj.com
From Captain Reman:
Don, that’s one heck of an approach. Having met you, your passion for helping others and your belief in your ability to serve your customers works magic for your shop. In a business heavily dependent on trust, you succeed because others perceive you as authentic. Maybe that’s because you are. Way to go!
For fun, I often will throw objections at center managers and owners to see how they respond. One such exercise resulted in a killer technique, courtesy of Sam Colarossi (now with RMP Powertrain):
If a customer FTAs because they don’t see the value of repairing the vehicle (i.e., the customer indicates that they will buy a new car), Sam would ask, “Oh, so you’re going to buy a new car, then, huh?”
“Is that a new car or a used car?” Sam would continue.
Most often, the customer would reply, “Well, a used car of course.”
Sam (with a smile) would then say, “Ma’am, you already have a used car.”
That made most people laugh.
Then, Sam would say, “The good news is, you know your used car better than anyone. You know what’s right; you know what’s wrong. With somebody’s else’s used car – you have no idea how they treated it.”
Sam claimed to have a 75% chance of retaining the customer at that point. I didn’t believe him. It sounded too good to be true. So, I asked Sam to call a few customers at ETE’s retail centers in Milwaukee, WI and see if his idea worked.
I can sum up the result in two words: IT WORKED!
Making the sale (avoiding the FTA, in this case) is directly proportional to your ability to communicate.
How well do you (or your managers):
•   Communicate the value of your services?
•   Communicate recommendations and options to your customers?
•   Communicate your services in your customers’ terms (i.e. speak their language)?
•   Communicate with a customer that has just told you they don’t want you to fix their car?
•   Communicate your past history of success and years of reputable service?
•   Communicate your brand promise?
You know you’re the best. You know the customer is better off working with you than with anyone else on the planet. And, most customers are better off replacing a transmission than buying a “new” used car.
Now, all you have to do is prove it.

FILED UNDER: MANAGEMENT

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