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December 6, 2011 at 11:07 am #976107Up::0
Hello, I thought this would make for interesting discussion:
If I ran out and purchased the latest BMW Model Z 3012+, is it likely to make me more sales?
Seems to me real estate agents rarely drive a bomb around. Every head honcho with an ego disorder rarely drives one either.
Would you buy a million dollar property off someone who drove around in a Barina? Why not
December 6, 2011 at 11:40 am #1078722Up::0When I’m buying something from someone in a ostentatious car my first thought is that there must be a fat margin on what they’re selling me.
It’s an occupational habit that all us accountants eventually become tight arses, after we see the ludicrous amounts people pay for their status mobile. You should never pay more than 20% of your annual net income on a car, especially as they lose their value so fast.
Did a tax return the other day for a Chef whose gross salary was $70k, and he’d just bought a BMW M5 for $92k on finance. After five years of payments he’ll have paid about $130k, more than twice his annual net salary.
Goose.December 6, 2011 at 1:02 pm #1078723Up::0NO Don’t tempt yourself
Just have a clean looking car that doesn’t look like an old bomb.
There are better ways to promote professionalism.
December 6, 2011 at 2:00 pm #1078724Up::0as a person who likes to turn costs into self funding profit centres, luxury cars can be a great tool in attracting high value clients but useless if you are an employee.
It does depend on your target market and what you do. ideal when selling big ticket items and it works better when you take your clients for a drive in them without making it look like you are showing off.
avoid the base models (Especially if you are on the gold coast). buy through dealer auctions instead of the public ones.
if you can’t afford the 1 above the base models then consider the alternatives.
these days, leasing is pretty cheap. bmw finance is great.
people judge the unknown by the known but we don’t need to overkill. i’ve known private jet owners drive around in a honda odyssey because their target market is mom and pop.
on the other hand if your target market drives bmws, it’s going to be a struggle with your holden or ford to get in. this is not being superficial. just factual.
however, we do suffer from tall poppy syndrome here so have to watch out. just dont go selling duplexs driving around in a beemer. choose a humble holden or ford instead.
really comes down to your target market. if they are frugal, dress and drive accordingly. if they are affluent then you need to match them but make sure that it matches your personality.
a safe car to have is a lexus, volkswagon or audi. you wont turn off too many people.
Then again, you can automate your lead generation and conversion so at the very least, your prospect is 95% pre sold before you even meet them. best case scenario is that they’ve bought from you and you’ve never communicated with them.
so yes, luxury cars can boost your income but you must have a strong strategy and multiple tactics in place to leverage them.
December 6, 2011 at 6:49 pm #1078725Up::0will it make you more money? no
will it make a better first impression? yesthe trouble is, theres a fine balance between the perception of “this guy mustnt be too good if he’s driving around a bomb” – barina to “this guy looks like he charges a bomb!” – fancy pants car.
you also have to consider if theyll actually see your car in the first place.
bottom line is though, if youre client facing and on the road and youre not a “closer” then it doesnt matter what car you drive.
December 6, 2011 at 7:13 pm #1078726Up::0Thanks for the info. Its definitely the “PERCEPTION”. Driving an expensive car may mean to your clients either you are GOOD/EXPERT at what you do that is why you are paid more or are OVERCHARGING your clients. It definitely depends on your target clients: rich, middle class or “lower middle class” and how you EXPLAIN yourself.
One thing about an expensive car though, you can tell your clients/business associates that you can always sell the car and pay them off should business turns bad.
If I made any errors in posting, I do apologize because its my first post. Would appreciate any corrections.
hymstrategies, post: 99271 wrote:as a person who likes to turn costs into self funding profit centres, luxury cars can be a great tool in attracting high value clients but useless if you are an employee.It does depend on your target market and what you do. ideal when selling big ticket items and it works better when you take your clients for a drive in them without making it look like you are showing off.
avoid the base models (Especially if you are on the gold coast). buy through dealer auctions instead of the public ones.
if you can’t afford the 1 above the base models then consider the alternatives.
these days, leasing is pretty cheap. bmw finance is great.
people judge the unknown by the known but we don’t need to overkill. i’ve known private jet owners drive around in a honda odyssey because their target market is mom and pop.
on the other hand if your target market drives bmws, it’s going to be a struggle with your holden or ford to get in. this is not being superficial. just factual.
however, we do suffer from tall poppy syndrome here so have to watch out. just dont go selling duplexs driving around in a beemer. choose a humble holden or ford instead.
really comes down to your target market. if they are frugal, dress and drive accordingly. if they are affluent then you need to match them but make sure that it matches your personality.
a safe car to have is a lexus, volkswagon or audi. you wont turn off too many people.
Then again, you can automate your lead generation and conversion so at the very least, your prospect is 95% pre sold before you even meet them. best case scenario is that they’ve bought from you and you’ve never communicated with them.
so yes, luxury cars can boost your income but you must have a strong strategy and multiple tactics in place to leverage them.[/SIZE]
December 6, 2011 at 8:23 pm #1078727Up::0Many never get that’s it’s what I drive not who I am. I’m still the same person no matter what car I may be in. In my corporate days I drove all the badge cars (company supplied perk), now as an independent I drive what represents most value and never go over $50k as it’s a fast depreciating asset as has been pointed out. Prospects that judge based on what I arrive in aren’t worth having as clients.
Would I buy a million Dollar property off someone driving a Barina – if I liked the property and it ticked all the boxes. What the sales person is driving isn’t one of them. I feel if you judge on external factors you are selling yourself short and will miss many interesting exchanges in both business and life.
Never judge a book is a well-known saying for good reason.
December 6, 2011 at 8:46 pm #1078728Up::0yourvirtualboard, post: 99286 wrote:Never judge a book is a well-known saying for good reason.never were truer words spoken, but i would challenge anyone on here that says theyve never initially judged someone / something on the initial impression.
its something that (unless you are blind) we automatically do without thinking and even though it may only slightly change the result of a meeting / interview / sale, it could be the difference between getting the deal or not.
another way to look at it is that a car can actually help your chances if the prospective likes cars themselves also (a highly likely event).
i have clients that I look after that have been gained through the “car scene” for a better word and that alone means that relationship is little stronger for it.
dEx
December 6, 2011 at 9:08 pm #1078729Up::0I’m going to go out on more of a limb here. Perceived capability (in regards to your offering) is a hugh part of selling and influence – in particular if you have a weak or non existent relationship with the potential consumer / client. Once your relationship strengthens then its slightly less of an issue. In other words, like it or not, people do judge a book by its cover.
The way you present yourself (your personal and business brand) is very important. From personal grooming, clothes, communication, and yes – bells and whistles. So I say brand association is clearly important ( advertising / marketing / sponsorship industry is built upon that premise).
Like the others here I think a middle ground is good. Don’t drive junk. Don’t drive a supercar.
And hey Nomanby – not all accountants are tightarses. Careful – yes. Conservative – sometimes (not in our case).
Helping build better businesses and better lives with expert financial and taxation advice. info@360partners.com.au www.360partners.com.au 03 9005 4900December 6, 2011 at 9:09 pm #1078730Up::0Tough question – I just finished reading a book called “Blink” – and I would suggest without major research no one could answer your question.
My “guess” is that buyers of luxury properties expect agents to drive luxury cars.
It’s quite possible if you do drive up in something the buyer isn’t expecting it “could” have an impact on the buyers impression of the property – impressions do transfer.
As an example my wife and I bought an investment property a couple of years ago – we looked at maybe 30 houses – often we would recall a house by the agent that showed us (remember the guy who had the slick hair – or talked like a robot etc)It’s easy to say “don’t judge a book by it’s cover” – but in reality we all do it consciously or unconsciously.
We make snap judgements about people and products all the time without knowing the reason why.If it was me – I suggest you follow the lead of the successful people in your industry.
December 6, 2011 at 10:13 pm #1078731Up::0Great thread.
Personally, I drive an old bomb. The front is mangled (blame the wife), it shudders at the thought of going up a hill, and the muffler fell off a few months ago. I could afford to buy a better car, but there are no financial advantages for me in doing that right now, so I’m holding off until it something expensive breaks. (It’s like a cockroach that just won’t die)
None of my clients see my car, and I don’t do a lot of driving anyway, so I don’t see it as a problem. I actually enjoy driving it around town, because it’s unpretentious. When I pull up beside a flash BMW and the driver looks down his nose at me, I’m happy in the knowledge that I’m not $80,000 in debt like him.
I don’t think I could drive a brand new prestige car when there are thousands of people dying from preventable causes everyday.
I guess it’s different for everyone and all the comments above are valid and correct, but I’m from the camp that would rather do business with someone who drives a falcon with a couple of baby seats in the back and an “If you can see this, I’ve lost my caravan!” sticker on the bumper. I always feel like I’m gonna be ripped off as soon as the slick talking salesman pulls up in his Merc.
December 6, 2011 at 10:37 pm #1078732Up::0Hi bluepenguin,
I understand and agree with your comments.
(Until just recently I drove an 11 year old Toyota and never had any issues with status)The question is – if you thought your car impacted your sales – would you buy a more expensive car?
In the same way – If all of your peers wore expensive suits – and you thought your old pants and shirt impacted on sales – would you buy an expensive suit?
The question is more about the economics.
December 6, 2011 at 11:48 pm #1078733Up::0ray_223, post: 99304 wrote:The question is more about the economics.I agree with that, every business decision is about the economics…
I too drive a bomb. A 16 year old Nissan Pulsar. It does not really want to die either. If I had my way, everyone would ride bicycles, but that’s another discussion
My opinion is that people are more likely to buy off people they like…and people like people who are the same as them…..you drive a bomb, I drive a bomb…I like you….You drive a BMW, I drive a BMW…I like you…you got an Ipad, I got an Ipad, maaan you’re the bomb (those pc guys are the suck)
Thing is that people that drive bombs (or say…accountants)…don’t have a habit of spending money…so as a sales guy why would you want to peddle your goods to the guy with a bomb? It would follow I’d best off be in a BMW if I’m in you’re for money….Hmm I guess that’s more about choosing a target market/ideal customer…
I would also be inclined to think people who drive bombs are not driven by status, they have different buttons to push…where as the status guys…that’s easy…their button is obvious…
December 6, 2011 at 11:52 pm #1078734Up::0Oops… I missed the point a bit.
If spending $100,000 on a car will bring in $110,000 grand worth of sales you wouldn’t have got without it, I guess that would be worth considering.
Having said that, we could all probably make small improvements to ourselves for free and boost our sales more than any car or suit could.
I remember reading a few years ago that the founder of Ikea drove a 12 year old Volvo. I’m not sure if he’s upgraded since, but he’s one of the top 5 richest people in the world.
December 7, 2011 at 2:15 am #1078735 -
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