Desking for Maximum Profits - AutoSuccessOnline

Desking for Maximum Profits

Learn how to ensure your desking process delivers maximum profit.

You know what car shoppers really hate? Feeling like they’re being scammed. 

When a salesperson runs to their manager during desking to ask if they can discount the vehicle, reduce the down payment or change the terms, most buyers automatically assume the dealership is trying to take advantage of them.  

So, how can your dealership counteract these incorrect assumptions on the part of the buyer? Let your salespeople take more control of the desking process. 

No time to read this article? Listen to it instead!

Click HERE.

This is a win-win for your dealership. Any time your salesperson moves away from the desk, the buyer has a chance to do more research on their phone. And if your salesperson doesn’t come back from their chat with the manager with the exact terms the buyer wants, they’re often up and out the door.  

Today, the ideal desking process would increase pricing transparency, speed up the car-buying process for customers and improve satisfaction scores. But it’s also critical that your desking process helps your salespeople obtain the highest possible gross for every deal. 

Want to ensure your desking process delivers maximum profit? Here’s how.

Negotiate Terms, Not Price 

A common mistake I see during the desking process is how salespeople set up the first pass. Right out of the gate, are you presenting 48-, 62- or even 78-month terms to your customer? If so, this doesn’t leave you with many secondary options.  

On the first pass, it’s smart to go shorter. That way, you’re negotiating on terms rather than price. If you present the longest terms and the customer doesn’t like what they see, then you’ve got nowhere to go with your second and third passes, other than money — which costs you profit. 

Starting with shorter terms gives you more room to negotiate and the customer will like what they see on the second or third pass, when price comes down. And you’ll like what you see in the final profits.  

Options Rule 

The more options you present, the more likely the customer will see an option they like and make a purchase. Ideally, you want to generate and present at least six options immediately, but trust me when I say more is better. So if six options are good, 12 or 18 are exponentially better! 

This is where a strong desking tool is critical for the best outcome. Your desking presentation should show customers side-by-side comparisons of multiple lease and payment options. If the customer wants to change the monthly payment or down payment scenario, all the salesperson has to do is plug in a new number and multiple new options appear. 

Additionally, salespeople should be able to use their desking tool to structure the deal however they want, whether by selling price, max profit for negative equity, max advance, desired payments or lowest rates. 

Integrations are Critical 

Perhaps the single greatest factor that impacts the quality of your desking process is how well your desking tool is integrated into your CRM, DMS and third-party rates and incentive providers, such as Market Scan. 

Logging in and out of alternate systems wastes time and costs you money. When integrated with your DMS and CRM, a desking tool allows salespeople to present A/B comparisons, multi-quotes, one-payment worksheets or four squares. These should all be visible on one screen so you don’t have to go from tab to tab in order to cobble together payment information. Additionally, you can pre-screen customers and run credit and compliance, all from a single screen in your CRM.  

Not only does jumping from tab to tab waste valuable time, but it increases the likelihood that a salesperson will miss an incentive the customer qualifies for, or that crazy-good new deal from your manufacturer.  

Bottom line: an integrated desking tool not only speeds up your desking process, but also makes it more accurate by eliminating redundancy, human error and overlooked details that cost your dealership money and deals.  

Ask your desking tool vendor how many fields are integrated between their software and your DMS. There should be at least a hundred integrated fields to maximize data capture for use in the desking process. 

Make sure your desking process is fast, transparent and accurate; but most of all, make sure your salespeople know how to leverage your desking tool to deliver maximum profit to your dealership.

You May Also Like

The End is NOT Nigh

Car buyers abandon digital tools when the process gets too complex — easy-to-use ecommerce capabilities are essential.

Boost Revenue, Streamline Operations & Improve the Car-Buying & Selling Experience by Connecting Your Technology

From supply chain snarls and production holdups to skyrocketing interest rates, car buying today is fraught with friction. This friction, however, presents an enormous opportunity for dealers to differentiate themselves by streamlining the car-buying process and making it easier for consumers and their staff.

Is the Sky Falling, Chicken Little?

Don’t let anyone fool you into settling for mediocrity in the showroom or online. 

Merchandising Strategies from Online Disruptors

Your online merchandising needs to rival Carvana’s. Here’s how to generate that emotional attachment.

The Game Plan Has Changed

Winning consistently never happens by accident; it’s time to focus on the fundamentals and get your game plan in order.

Top 10 Reinsurance Mistakes (& How to Avoid Them) Part 1

The right program can benefit every aspect of your dealership enterprise — from F&I and fixed ops to succession planning and retention.

Other Posts

Dominion DMS to Showcase DMS Offering at NADA 2023

VUE is customizable. Dealers add only the tools they want, keeping their operations on track without paying for unnecessary applications.

Podcast: CRMs: Data Management of Customer Engagement Tool?

Steve Roessler from DriveCentric discusses how dealerships should be utilizing CRMs in a modern business world.

If It’s Not Broken, Break It

Recon software provides the data to manage and motivate by the numbers.

Keep the Spark with Curb Appeal

When inventory levels improve, the dealerships that lost the spark of what makes buying a car exciting are going to suffer.