Tuesday, September 13, 2011

Miracle on Your Street

In any survey of the least trusted professions, lawyers and politicians are usually ranked near the bottom, but there is one group that has consistently beat them to earn the dubious distinction of being the least trusted: used car salesmen. You’ve seen the stereotypical salesman who waits like a vulture for the next unsuspecting victim and then pounces with a smile showing his gold tooth and wearing a plaid jacket and tie with the mustard stain from the cheeseburger he had for lunch.

Society tends to view these individuals as sleazy shysters who will say and do anything to offload a hunk of junk vehicle, so when I was contacted by the owner of a used car dealership in Smithfield, Utah to help him improve his sales, I was somewhat hesitant. Cal had been in business for over 30 years and his older son was being groomed to take over. Sales were steady, but he wanted to know what he should do to bring in more business.

Across town, he competed with another used car dealership that used some panache to drum up business. The owner did his best to create an amusement park atmosphere with a duck pond, petting zoo, an inflatable character, and lots of colored flags and whirling things that screamed for attention. He regularly advertised on TV, radio, and newspaper announcing his super low prices.

Cal, on the other hand, never advertised in the newspaper and his car lot seemed bland by comparison with only a sign and some simple triangular flags hanging to capture attention. When I asked where most of his business came from, he told me that most of them came from his regular customers who bought from him in the past. Many had been buying from him since he opened and now their children and some of their grandchildren were now buying used cars from him.

I was curious as to how he was able to keep such a loyal base of customers, so I asked why they trusted him so much and would even travel hundreds of miles after they moved from the area to continue buying from him. He told me that he wouldn’t sell a car to one of his customers that he wouldn’t sell to his own mother. Cal and his son would go to the same major car sales that other used car dealers went to buy their inventory, but they used a 30-point checklist to evaluate each vehicle. He said that if a car had ever been in a wreck, he would not even consider buying it, even if it was fixed and looked mint-new. The reason was that the frame could still be bent and it might cause problems later with an unsuspecting owner.

When I asked Cal what he would do if he accidentally sold a “lemon” to a customer, he didn’t hesitate telling me that he would trade it for a car of similar value or refund their money. As he talked, I found myself wanting to buy my next car from him. I asked if he wrote or communicated any of what he was telling me, such as his meticulous 30-point checklist and iron-clad guarantee, to new prospects and customers and he said “no” because most of them already knew it because they were referrals from his loyal customers.

You can see that the solution to his “problem” was simple. He just needed to tell his story to others who weren’t fortunate to know that there was a used car salesman who was totally honest. While many people won’t even go near a used car lot because of the fear of being ripped off, his customers would travel from great distances to buy from him because they knew he had their best interests at heart and would always do the right thing.

Most businesspeople would love to have the reputation and loyal following that Cal and his son enjoyed. How much is your reputation worth and how loyal are you customers? Looking out for the best interests of your customers may not be a quick-fix for improving sales, especially when you realize that a customer may need something that you’re not currently selling. However, it will make an impression, and possibly bring back a person for future sales. If you’ve seen the movie “Miracle on 34th Street” then you know what I mean. The new Macy’s Santa creates a stir with management when they find out that he’s referring customers to competitor’s stores because Macy’s doesn’t have what they want. They’re ready to fire him until they realize that Santa’s honesty is actually bringing more customers to shop at their store.

Create a miracle on your street by sincerely looking out for the best interests of your customers. Promise to only make promises you intend to keep. Make sure each of your employees understands your expectations by creating a set of core values that you expect everyone to live by and use to make decisions. Look at each sale as the first step in a long-term relationship where people will gladly return and refer their friends, children and grandchildren to your business.

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