4 Square Sales Presentation: GOOD or BAD?
67What is the 4-Square designed to do?
Let's face it. Those of us in sales are looking for one thing...SALES! Right? Professional salespeople today have to work harder in order to make a sale. Customers are smarter and the internet is available to everyone.
Almost every customer that comes on your lot is looking for information. They want to know all about the RV they are looking at, but more importantly they want to know what your bottom dollar is. When they get this information, they want to have time to walk away and to have some breathing room so they can shop around making sure they are getting the best possible price.
You can't blame people for trying to get the best possible price. We would do the same thing if we were the customers, wouldn't we? The problem is this. We spend all day with a customer and they leave the lot. You have now invited scavengers that sit back waiting on that one phone call to steal your commission! It's not right, is it? So what do we do about this?
We use a 4 square, that’s what we do about it. The 4 Square is designed to present ALL of the different buying scenarios that the customer needs in order to make a buying decision.
I’ve heard all the comments from salespeople, managers, owners and etc. The truth is this; the customer 9 times out of 10 will make his or her buying decision based on the monthly payment and down payment. They might tell you that the only thing that matters is the difference, but when you give them the trading difference and they leave, the first thing they do is find a way to convert that difference figure into a payment. Most cash buyers are getting their cash from somewhere and when they borrow that money, it becomes a payment to them.
Actual 4 square
What goes in each box?
TOP LEFT BLOCK
In this block write down the FULL list price, do not discount...yet!
TOP RIGHT HAND BLOCK
In this block you will write down either an actual trade ACV, or a slightly inflated one, depending on your customer.
LOWER LEFT CORNER
There are different guidelines for this block. Some will put 20% of the selling price, others will put as low as 10% and as high as 25%. It depends on what you are selling and the bank requirements. Put it as high as you can without offending the customer. I like to use 20% as a rule.
LOWER RIGHT HAND CORNER
In this block you will want to use a range of payments. I like to inflate the payment for negotiating purposes. This is where the negotiating will normally occur so keep it as high as you can.
First Pencil
Second Pencil
Stay COMPLETELY away from discounting the Sales Price!
If you have to work on the top two numbers at all, only work on the Trade Allowance. As you increase that amount, it is like reducing the selling price, right? Giving the customer is ALWAYS better then taking. When we work on the Sales Price, we are taking. When we work on the Trade Allowance, we are GIVING! There is a big difference. If you have to negotiate on the top two squares, always remember to circle the original amount. This shows the customer they you are working hard to earn his business. No matter which of the 4 boxes you negotiate in, circle and make small changes in your offer. When you write down figures below the original amount, you are asking the customer if this figure will work. If he doesn't bite, you continue down, or up, depending on which box you are working from. By the way, it is helpful if you learn to write upside down. That way it will go much smoother, because you can leave the figures in front of the customer the entire time.
Remember this. It isn't the amount of money you drop, it's the number of times that you drop or lower your offer that counts. After about 3 or 4 drops in your offer it is likely the customer will bite or make YOU an offer.
When you get the offer, you turn the 4 square over. On the back you write down in plain easy to understand words just exactly what his offer is. Then ask him to sign it and get a deposit. If you have a signature and money, you have a contract!
The Committment
Additional Questions or Comments
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WritingDeals.com says:
3 days ago
This is a great summary of 4 square negotiating. The bigest key is your point about making it clear to the customer the NUMBER of changes (rather than the amounts). It's not the size of the price drops - it's how many you do that matters! There's another great article on closing in http://www.writingdeals.com discussing the motivation of buyers and how to use it to your advantage when negotiating a deal.