You don’t get what you deserve, you get what you negotiate.
The most powerful tool in any negotiation is leverage. Of course, dealers know this instinctively. A dealer negotiating for a new DMS contract can maximize the leverage he exerts not only by carefully planning his strategy, but also by using every tool at his disposal. Let’s, therefore, review the essentials along with a few less evident ways to take control in these financial skirmishes.
The price you pay is dependent solely on your negotiating strategy.
The strategy many dealers employ is simple. They rely solely on their negotiating skills and assume, if they talk tough and threaten to leave, their vendor will just surrender and give them a great deal. There’s only one drawback to this method – it doesn’t work.
Since so many dealers attempt this tactic, the vendor reps are well prepared. Remember, the reps do this every day, the average dealer only once every five years or so. Everything has changed since the last time the dealer looked at this and while the rep can spend all his time on the deal, the dealer has his business to run. The results are predictably poor for the dealer. Veteran reps just don’t believe the dealer’s blustering and, since most dealers don’t really intend to change vendors, they just have to wait for the dealer to cave. It comes down to credibility.
7 negotiation tips to be sure you hold on to your leverage and get the right deal:
1. Start the DMS selection process early enough.
Interested in one of our eBooks? Download our DMS Negotiation’s Guide and talk to us about how we can help you to get the right solutions for the best possible price and terms.