Editor's note: Although this article is older, the information is still relevant and potentially helpful.
Negotiating trade-ins can be a big challenge for many distributors. Cornwell Tools dealer Jerry Neeley explains his tactics for this process.
Once you’ve discussed the details of the box the customer will be purchasing, it’s time to talk trade-in value. “When you’ve already got them hooked, you start the negotiation,” says Neeley.
He first takes information the customer provides, including what he paid for the box at initial purchase.
“Say the customers tells you ‘I paid $5,000 five years ago,’” explains Neeley. “I say, ‘Would half be fair?’”
Once the customer counters, it’s safe to begin the more detailed conversation, including finer points on why the trade-in amount may be a bit lower. Be sure to name call out these items as you’re inspecting the box. “You show them all the little things to adjust it down to a fair price for the trade,” explains Neeley. “Then you negotiate to a point.”
Overall, Neeley says that selling tool storage is no different than any other purchase made off the truck.
It’s about “finding out your personalities, finding out level of interest, finding out level of ability, credit wise,” he says. “It’s just a qualification, over and over again.”
