True story: Recently, my daughter was at a major car dealership with her boyfriend, intending to purchase a pre-owned car. Note: I've made up the numbers for my daughter's financial privacy, but the bottom line is still the same.

The dealership asked for, say, $26,000 “all in” for the car, but my daughter had already decided that $20,000 was the amount she would pay. There was a lot of ground to cover to get a deal done. After some discussion, seller did his best, dropping the price to $25,000. But that still left a big gap, so he said, “Let me go check with my manager and see if he has any ideas.”

After five minutes, the salesman and his manager entered the room together. The manager explained that at $25,000, this was a great prize; it was already well below their MSRP, and the deal was “too slim” as it was for him. He then used the famous line, “Okay, here's what I'm going to do to get you into this car today.” The manager pulled out a piece of paper with revised numbers showing his price now at $23,995. He explained to my daughter that this was the absolute best price possible. He was “all in;” this was his “best offer”, and he told her to take it or leave it. For the grand finale – considering this is a 100% true story – the manager took out a big red ink stamp and slapped it on the paper. The stamp read “FINAL” in bold red ink. $23,995. FINAL.

My daughter replied, “Thanks, but I'm sorry; it doesn't look like it's going to work.” Without hesitation, he immediately said, “What about $22,500?”

When my daughter told me the story, I had a great laugh. After the big show, the manager held onto his award for a full six seconds. And the idea of ​​the final red seal just made the story even better. But the more I thought about it, the more I realized that there's actually a lot to unpack here sales tacticspsychology and effectiveness.

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I'm not in the car business and have never sold cars, but I can see some popular sales tactics (and mistakes) at play here:

Playing the waiting game

All this came down after my daughter had spent hours in tears. It was getting late on Saturday, and the manager knew she hoped to finish it. At some level, the manager had worn him down and was playing the clock, playing the “waiting game”. It didn't work in this case, but often, this notion of using time as a weapon can be very effective. Using time as a strategic element in the negotiation process can be effective, but must be used with care and respect. Pushing too hard against time constraints can backfire.

Closing the deal by changing the sales line

When the salesperson reached his personal bargaining line or thought he was about to lose it, he brought in his manager. In addition to adding some time to the clock, this step created a new opportunity for a new dynamic. The dealership never wants a potential buyer to walk out the door, so if one person doesn't get the job done, it's always worth trying someone else. The involvement of a company manager or administrator in the negotiation process can create new dynamics and opportunities for closing a deal.

Proposing your best and final offer

Although I laughed hysterically when I heard about the red stamp, I soon realized that it was actually a smart move. Once upon a time, I think some sales and marketing people sat in a room and someone said, “I have an idea—let's make a red stamp that says final and use that during negotiations.” Everyone probably laughed and said, “No, I'm serious!” And then everyone thought about it and agreed, no matter how ridiculous an idea it was, it actually made sense. It's one thing to tell someone something verbally, but when it's “official” and in red ink on paper, it's human nature to believe it and take it for granted. Using Psychological sales tactics creating a fear of missing out (FOMO) effect, such as The “Final Offer” stamp can be effective in conveying seriousness and finality, but you must keep your word, or you're likely to lose out. reliability.

All of the tactics I described above were smart, but here's where I think the marketer dropped the ball:

Trying a closing move too soon

The manager came in cold and instead of taking some time (again, time is on their side) to talk value, create some alignment and build some rapport, he went straight for the kill. This tactic can work, but I felt it was too aggressive. He would have been better off discussing pain points and goals regarding the product, coming up with some additional incentives, etc. Understanding customer needs, discussing product value, and building rapport and trust can be critical to successful sales.

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Putting an unattainable offer on the table

The manager decided to go for the shutdown in a fairly aggressive manner. In some cases, this tactic makes sense. But he played the numbers all wrong. He knew they were a full $5,000 or 20% off and decided to bring them all in line at $23,995. Of course, given how quickly he dropped another thousand, he had a lot more room. If he was going for the narrow and “FINAL” offer, he should have made it more convincing. By making the big show and then immediately lowering his price, he completely lost credibility and decreased his chances of closing. In this case, he lost my daughter's trust and the sale. In negotiations, it is important to understand the other party's budget and limits before making an offer. Being aware of their limitations will increase the likelihood of closing a deal.

Saying your offer is “final” when it isn't

If you offer something of value at a good price and tell them it's “final” (which I personally don't recommend as a sales tactic), then stick with it and understand. Your word should mean something. Once he realized his “final” price wasn't going to work, instead of lowering it, he could have thrown in a valuable additional incentive, perhaps some free service amount or some kind of special financing. If a “final offer” is presented, it is essential to stick to it as your final word. If adjustments are needed, they should include incentives or additional value to maintain trust and credibility.

Selling is an art, no doubt about it. A great salesperson builds a relationship, asks questions and listens, understands customer pain points, is honest and transparent, and acts with integrity. Of course, strategies, techniques, incentives, and a lot of human emotion and psychology are at play, but all of that can happen successfully without losing your credibility.

So the overall moral of my story? Choose wisely before using the big red button!