I’ve read quite a few complaints about salespeople knowing less about their plug-in vehicles than the potential customers coming in to buy them. I’ve written about the whys behind the phenomenon before.
Things are changing. A tipping point is coming although the general public is still oblivious to it. In the trenches, a small, dedicated staff of salespeople, technicians, service advisors and dealership management have been toiling away, spending their free hours reading voraciously, convincing (or trying to convince) their coworkers and potential buyers, getting a plug-in vehicle themselves (or a dealership demo), attending events to promote plug-ins and, in some extreme cases, changing their career to help others make the transition to driving an EV.
There have been struggles and successes. Just the eight plug-in vehicles, whose sales I track, have exceeded sales of 265,000 in under five years. The buyers of those vehicles, in many cases, have added another plug-in to their garage or have made the transition from their first to a second, newer generation plug-in. I believe the sales trends we’re seeing in some of these vehicles indicates the buyers are becoming more sophisticated with regards to plug-in vehicles. No longer is slapping on an outlet and adding a small battery pack sufficient for these buyers. They’re now paying closer attention to how that battery is used, in the case of hybrid vehicles, and how that affects the results they will experience. I’d like to say I was very astute, when it came to my selection of the Volt, but the fact of the matter is it was just dumb luck. I protected myself by leasing the new technology, but my selection was limited to the Volt, Leaf and Tesla Roadster (which I wanted terribly but could not afford).
So how do buyers help move the dealerships and their respective staffs forward? How does one ascertain the right dealership from which to buy a plug-in vehicle? How does a newbie make sure they’re getting the right EV to fit their needs?
It’s really pretty simple: Feed the good. Starve the bad.
When looking for a dealership, check their ads. Are they running ads on the vehicle you want? That’s one sure sign that the dealer wants to sell that specific model. Ad space is limited, so any specific dealership may have product rotations in their ads that prevent your dream car from always being advertised, but you should expect to see it advertised occasionally. Is the vehicle in the showroom or another prominent place, or is it tucked away in an out-of-the-way place?
Notice the reaction of the salesperson, when you mention the plug-in vehicle. Just today, I was working on the computer, locating a vehicle for a customer, when a potential buyer walked into the showroom. The first salesperson to greet him asked how he could be of assistance. The customer said he had questions about the Volt. Immediately, my ears perked up, several cubicles away. Then, the salesperson pointed toward me and said, “You’ll want to talk to Buzz.” Some salespeople will opt to pass a potential customer to another salesperson, effectively passing on the sale. Since we are paid by selling vehicles, why would the salesperson pass on a potential sale and send them to me? There are a few reasons:
- Making sure the customer gets the answers they need. If the salesperson isn’t well-versed in the EV, its government incentives, the charging requirements, etc., they may choose to pass the deal to someone else that they know will do a better job. Most salespeople are not that noble, but some are. As EV clients become more astute, salespeople can’t just bluff their way through the answers the customer needs.
- Risk/Reward isn’t sufficiently biased toward reward. This salesperson has probably had customers come in before that had questions about an EV. Questions upon questions. Then, after satisfying their curiosity, they left without purchasing a vehicle. The sales person just earned zero dollars for what could have been a three hour discussion. Not only that, but while helping the potential EV client, the salesperson is unable to help someone (or several someones) that would have purchased a traditional car or truck and had very few questions because they already have a strong understanding of gasoline-powered vehicles. Quickly sell a traditional vehicle versus discussing an EV for an extended time without closing a deal. Which would you prefer to do, in the salesperson’s shoes?
- Perhaps this particular salesperson has done their homework and become well versed in EVs. Why would they, after investing the time to learn so much, turn away from an EV sale? Although profit margins on EVs is a lot smaller than on traditional vehicles like SUVs and pickups, prices vary widely. This is especially true of models which are about to be replaced by newer designs with greater capabilities. Dealerships who don’t have a strong EV sales staff, invariably use the only tool they have: discounting. That’s great for the customer’s pocketbook, but very bad for their understanding of their new vehicle, including if it is even the right vehicle for their needs. So, the salesperson goes through several iterations of explaining everything the customer needs to know, charging costs, government programs (state & federal), charging equipment, home wiring, high occupancy lane access, dispelling myths promulgated by a certain conservative news agency, and on and on. A few days later, the salesperson may call the customer to see if they’re interested in taking the plunge, only to be told, “Thanks for the information, but we found a deal we couldn’t pass up at another dealer.” How many times would you go through this cycle, if it meant getting paid nothing every time it happens? How much more studying would you do to keep abreast of developments in the market, changing government programs, etc.? As a customer, you may have gotten a great deal at the 2nd dealership, but you’ve left the next customer with a less-than-motivated EV salesperson.
Here are some ways to not poop the pool, when you buy:
- Determine what kind of buyer you are.
- Are you going to select vehicle/dealership/salesperson based solely on price? If so, let the salesperson know this from the very beginning and don’t be shocked or angry if they tell you they aren’t competitive with dealerships that are dumping the vehicles you want, but don’t have the sales or service staff to take care of you. They may turn and walk away. Don’t take this as an insult, as it is their best effort to be honest and make a living. Instead, try to get as many answers as you can, on your own. There are lots of great resources out there, including: friends and neighbors who currently drive EVs, Green Car Reports, The Electric Generation, EV owners groups on Facebook, Inside EVs, Plug In America, Plug In Cars, Green Tech Media, blogs (like the one you’re reading now), radio and TV shows, the manufacturers’ websites and government websites. In this way, you’ll be more prepared to select your first plug-in vehicle without keeping a helpful, well-meaning salesperson from wasting valuable sales opportunities, when they may have no chance to win your business.
- If you want or need a lot of information and, rather than researching on your own, want to be guided, be prepared to pay more for the vehicle. Have you ever hired a fishing guide, hiking guide, realtor, tutor, etc without paying them? This is no different. The salesperson has very specialized knowledge, that you have determined you need. To make sure you have a salesperson that will be of value to you, ask if the dealership has an EV specialist and if so, ask to be taken to them. Ask them if they drive a plug-in vehicle. If so, ask how long they’ve been driving one. If not, perhaps they won’t have the answers you need. Ask about their experiences, both good and bad. Get all your questions answered to your satisfaction. Then negotiate a fair price that also fairly compensates your EV guide.
- Ask if any of the service advisors or technicians personally own or lease the vehicle in which you’re interested. If so, you know you’ve found great after-purchase support. Ask to meet the service advisor and make this specific advisor your point of contact for service needs.
- If you are served well by a knowledgable EV salesperson, make sure the dealership sales management knows you found them to be helpful. Yes, commissions are important, but its also important that management know the lengths the salesperson has gone to, to help clients making the switch to this new paradigm. As the EV market grows, other salespeople will hop on the bandwagon. In the early development of the EV market, dealership management needs to know who their go-to people are for EVs. Sometimes, potential buyers are referred to the dealership management who then decides which salesperson gets to work the deal. Those referred customers will be better served if management knows of the salesperson’s expertise.
- If your interest was piqued by a friend or neighbor who acquired an EV, ask them to recommend a dealer and/or salesperson. Those that have had a great sales experience will be happy to promote the salesperson that put forth the effort. Since that salesperson also made a sale (to your friend) they are probably still motivated to help others, on their electric vehicle journey.
- If you’ve gotten the answers you need, but aren’t quite ready to buy, remember your salesperson’s name and ask for them if or when you return. Another salesperson will be more than willing to help you, when you’re poised to buy. It’s all reward and minimal effort, at that point. Reward the one who earned your business.
Buzz, you should start the National Association of Electric Car Salesmen. Local groups could meet once a month to share tips for advertising and selling plug-in cars. These salesmen need to support each other.