Sales Tip - EDL Doesn’t Work In a Negotiating World
I went out looking for a new vehicle. The salesman introduced himself and quickly went into a pitch that they are a no-haggle dealer..."We make it a comfortable buying experience; every vehicle is already at the very best price." I told him he was out of business and didn't know it.
I've seen it before; dealers that fell for some consultant's advice to promote Everyday Low Pricing (EDL) with no negotiation. Dealers either abandoned the concept or closed their doors.
Consumers have expectations there is wiggle room built into automobiles...and they expect dealers to wiggle. That's just the way it is.
Retailers who fall for the same EDL advice suffer the consequences. J.C. Penney is the latest example of the concept. They were in trouble, went to EDL ("No Sales"), and as I predicted, things got worse. Notice lately they are trying to rebound by re-introducing sales, and lots of them?
Radio advertising has been negotiated in most markets for years. Leave yourself a little wiggle room when you make a presentation and be prepared to wiggle.
Source: John Potter, SVP/Professional Development, RAB
(Note: RAB's Brandeis Hall will be conducting a webinar on the 10 principles of negotiation on December 10th and 12th. Member registration is $49, with details available here.)