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This is a true story. My daughter recently went to a major car dealership with her boyfriend to buy a used car. I’ve made up the numbers to protect her financial privacy, but the point remains the same.
The dealer, for example, wanted $26,000 “total” for the car, but the daughter had already decided that $20,000 was the maximum. There were a lot of conditions that had to be met before the deal could actually be closed. After some discussion, the salesman did his best and brought the price down to $25,000. However, there was still a big gap, so the salesman told the daughter, “I’ll check with my manager and see if he can come up with anything better.”
Five minutes later, the salesman and manager came into the room together. The manager explained that $25,000 was a great price. It was already well below MSRP and to him, the deal was “razor thin.” He then said the famous line: “Now, here’s what I’m going to do to get you to buy this car today.” The manager pulled out a piece of paper with the revised numbers and confirmed that the current price was $23,995. He explained to my daughter that this was the absolute best price possible. He “went all in” and said that this was his “best offer” and it was up to her to accept or reject it. Finally, and I want to keep in mind that this is a 100% true story, the manager pulled out a big red ink stamp and slammed it on the paper. The stamp had the word “FINAL” written on it in bold red ink. $23,995. FINAL.
She responded, “Thanks, but unfortunately, it doesn’t seem to work out,” and without hesitation, he quickly replied, “How about $22,500?”
When my daughter told me this story I laughed out loud – the manager held the price constant for a full six seconds after the big show – and the idea of ​​the red stamp at the end made it even better – but the more I thought about it the more I realized there was a lot to unpack here about sales tactics, psychology and effectiveness.
Related: 3 Unconventional Sales Tactics to Close More Deals
I’m not in the car industry and have never sold a car, but I see some common sales tactics (and mistakes) here.
Play the waiting game
All of this happened after my daughter had spent many hours on the premises. It was late on a Saturday and the manager knew my daughter wanted to finish early. To some extent, the manager was playing the “waiting game” by tiring my daughter out and running out of time. Although it didn’t work in this case, the idea of ​​using time as a weapon is often very effective. Utilizing time as a strategic element in the negotiation process can be effective, but it must be used carefully and respectfully. Pushing time limits too hard can sometimes be counterproductive.
Contract concluded with changes to sales lineup
When a salesperson reached his personal negotiation limit or felt he was losing a customer, he called his boss. This step not only gained him a little extra time, but also created new opportunities for new dynamics. Dealers never want to see a potential buyer walk out of the store. So if one rep can’t get the job done, it’s always worth trying another one. Involving your manager or company management in the negotiation process creates new dynamics and opportunities for closing the deal.
Present the best and final proposal
When I heard about the red stamp, I laughed out loud, but I soon realized that it was actually a clever way to do things. I think once upon a time, a few sales and marketing people were sitting in a room, and someone said, “I have a great idea. Let’s make a red stamp that says FINAL and use it during negotiations.” They probably all laughed and said, “No, I’m serious!” Then they all thought about it and agreed that, although it was a funny idea, it actually made sense. Communicating something verbally is one thing, but if it’s “official” and written in red ink on paper, it’s human nature to believe it and take it without question. Using psychological sales tactics to create a fear of missing out (FOMO) effect, such as a “final offer” stamp, is effective in communicating seriousness and decisiveness, but if you don’t keep your promises, you’re more likely to lose trust.
All of the tactics I outlined above were smart ones, but here’s where I think dealers fail.
Attempting a premature shutdown
The manager came in cold and instead of taking the time (again, time is on their side) to discuss value, align, and build trust, they tried to hit you right in the feels. While that tactic might work, it felt too pushy. It would have been better to discuss the pain points and goals around the product, offer additional incentives, etc. Understanding your customer’s needs, discussing the value of your product, and building trust are all crucial to making a sale.
Related: How to Master Sales Success – Why Every Answer and Rejection Matters
Make an offer that is out of reach
The manager decided to try to close the deal in a fairly aggressive way. In some cases, that tactic makes sense. But he got the numbers wrong. He decided to go all in for $23,995, even though he knew it was $5,000, or 20% off. Clearly, he had plenty of wiggle room, given how quickly he slid another $1,000 down. If he was going for a hard sell and a “final” offer, he should have been more convincing. By overplaying his game and quickly lowering the price, he completely lost credibility and made the deal less likely. In this case, he lost my daughter’s credibility and the sale. In negotiations, it is important to understand the other party’s budget and limitations before making an offer. Being aware of the other party’s constraints will increase your chances of closing the deal.
Saying an offer is “final” when it is not
If you offer something of value at the right price and say that it’s your “final” price (which I personally don’t recommend as a sales tactic), stick to it and mean it. Your words must mean what you say. If the customer realizes that your “final” price isn’t working, instead of lowering the price, you could have added an additional valuable incentive, such as free services or special financing. If you make a “final offer,” it is essential that you stick to it as final. If an adjustment is necessary, you must include additional incentives or value to maintain goodwill and credibility.
Sales is an art. There’s no doubt about it. Great salespeople build relationships, ask questions and listen, understand their customers’ pain points, and operate with honesty, transparency, and integrity. Of course, there are strategies, techniques, incentives, and a lot of human emotion and psychology involved, but all of that can be done successfully without losing trust.
So, the overall moral of my story? Choose wisely before using the big red stamp!