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When it�s time to be tough

Sometimes customer satisfaction requires being honest and direct

Case Study
The young married couple sat in front of me as I presented the benefits of the extended service contract. They were purchasing a 5 year old �out of warranty� vehicle, and they were on a very tight budget. Up to this point, the process had been very smooth and they were enjoying our low pressure approach to car sales.

Then I went for the close:

�For only twenty-two dollars per month, you can have the confidence that all of these items (I pointed to the brochure) will be covered during your first three years of ownership. Wouldn�t you agree that this makes good sense?�

�Yes,� the customer replied, �but we really can�t afford it. We�re already pushing the payment as far as we can go.�

Time to be honest
Depending on the customer�s circumstances, there are a number of ways you could respond. In this case, the customer was on such a tight budget that any major repairs would have created a financial hardship. So I just told it to them straight. Here�s how I handled it:

�Joe and Susan. I can appreciate your situation since my wife and I were in the same place early in our marriage. And just to clarify, do I hear you saying that you agree with the benefit of the service contract, but you don�t know how to budget the additional $22.00?�

They both nodded.

�Well, I�m usually not this blunt. And I never try to push customers into something that they don�t want or need. But it�s my responsibility to remind you that the cost of repairs for many of these components can be hundreds of dollars. And if you can�t find $22.00 a month right now, I know you won�t be able to find an additional two hundred, five hundred or even a thousand dollars when you need a major repair. So I�m absolutely certain we can find a way for you to come up with an additional .73 cents a day, because frankly, you can�t afford not to have this protection in your budget.�

Joe and Susan bought the contract and the car. And less than a year later they called to thank me because a $1200.00 repair only cost them a $50.00 deductible.

So don�t hesitate to tell it like it is when the best interest of the customer is at stake.