So, as I posted a few days ago, I’ve been shopping for a new car.

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Coincidentally, a few weeks ago, my wife and I were looking at property values for a nearby neighborhood with million dollar houses. We found that two of the most valuable houses were owned by the owners of a couple of the local car dealers.

There’s lots of money in selling cars, I guess!

I was torn between two similar models from Jeep and Hyundai. Well, I decided that if I could get the price I was looking for, I would go with the Jeep.

So I went to the dealer – let’s call it Smith’s Chrysler Jeep to protect the innocent – to negotiate, backed by all of the Consumer Reports information I gathered.

The sales person went back to his manager and improved upon his most recent quote. Of course, I said that I wanted a lower price.

The sales person said “We’re not really making any money on this vehicle at this price point. I mean, it’s not like a Dodge Ram that has thousands of dollars of markup. There’s no markup left.”

I said, “C’mon Jim. You know and I know that there’s markup left. I got all of the information from Consumer Reports. True, it might not be enough to pay Mr. Smith’s mortgage, but there’s still some juice there.”

Then I hear a voice from over my shoulder saying: “What’s this about Mr. Smith’s mortgage?”

I turn to find Mr. Smith – the owner of this rather large dealership. Ha ha!

So Mr. Smith sat down and got more aggressive with the deal, I challenged a few numbers he wrote down, and he further swung the price my way. We reached a price point I was happy with and bought the car.

I always teach my students to negotiate directly with the decision-maker and was planning on asking to speak with the sales manager/finance guy once we got to the appropriate point, but didn’t plan on things happening the way they did – in such a funny way.

To Your Career,
Charles Dominick, SPSM
President and Chief Procurement Officer
Next Level Purchasing, Inc.
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Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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