Working Sales at a High End Dealership

[edgemar]

Can one make a decent living selling Porsches, Mercedes...etc? It seems everytime I go into one of those dealers I know more about the cars then the salesperson. What are your thought?

[oldE]

I would say the very best salespeople, blend their enthusiasm for the product they sell with their desire to serve the buyer. That means using his /her skills to find out about your likes/dislikes, what your price range is and how serious you are about a purchase today/tomorrow/next week. They will not stuff a lot of information down your throat, but will be knowledgeable about the product represented.
Good salespeople are the exception to the rule, but will do well for themselves whether selling Hondas or Porsches.
(And I know what you mean about knowing more than the ernest young man in the suit and tie who is showing you the car.)
Les

[notfarnow]

What he said.

A good salesman balances product knowledge and good sales skills. I worked at a car dealership when I was going to university in Montreal, and the sales manager was an excellent example of a great car salesman. He knew cars inside out, up and down. However, he was very careful about not overwhelming customers with information they didn't understand or didn't care about. He was very, very skilled at giving information that was important to the customer in front of him. That man sold A LOT of cars, and when I was there he was only selling to previous customers & referrals, he didn't take customers coming through the door. He had a great way with people, and I'd say customers who dealt with him enjoyed the experience of buying a car. When they brought their car in for service they'd often go over and chat with him, and he genuinely enjoyed it.

To your question, yes you can make a decent living. But it's going to depend a lot more on your ability as a salesman than your car knowledge.

I don't know what the commission structure is like in high-end dealerships, but I'd be interested to see how a Toyota salesman who sells a few Corollas a week would fare compared to a Mercedes salesman who sold a few cars a month.

[VaSteve]

Somewhat OT: Is selling for a car dealer a good job?

[edgemar]

Thanks for your replies...and for that link as well. I'll take a good look at those postings.

[Hugh R]

One of my daughters high school friends who is now 20 or 21 sells new cars at the local Ford dealer. Pretty, smart and listens, she made about $100k her first year!

[Moses]

My father-in-law has been selling Mercedes for decades. He's a calm, no pressure type. Genuine and sincere. A real gentleman. He does very well.

[Jims5543]

Originally posted by Hugh R
One of my daughters high school friends who is now 20 or 21 sells new cars at the local Ford dealer. Pretty, smart and listens, SHE made about $100k her first year!

The key word was SHE. If she is attractive and knows how to use it she will do well. My neice was trying it but was too dense to figure out how to work the gender thing in her direction. The sales manager pushed her onto the sales floor and I am sure he thought he had a winner. She had the looks but not the smarts.


To sell high end cars is a dream job to me. I would love to do that, I would know the product line insude and out and know when it was needed. You can sniff out a motorhead in a second.

[Vipergrün]

Originally posted by Hugh R
One of my daughters high school friends who is now 20 or 21 sells new cars at the local Ford dealer. Pretty, smart and listens, she made about $100k her first year!

One word...."cleavage"....nuff said

[LeeH]

The Porsche dealership in Phoenix had an ad a few years ago for a sales position. I called the manager who informed me that with no prior high end sales experience he would not even consider hiring me.

[kqw]

High end sales can be REAL tricky and different attitudes and strategies are necessary to get the customer to sign on the bottom line.

As seasoned sales person should be able to spot a serious buyer whether they are wearing Gucci's or flip flops.

There is a portion of high end car sales that take place with sight unseen and over the phone discrete buyers.

There are a portion of high end car sales that take place in the office after hours or in the home of the customer.

Some high end buyers scrutinize the dealership by finding out the reputation and policies of the dealership prior to identifying themselves as a customer.

Some customers are ethnic-centric. I.E., If the customer is a member of a minority group, Asian, Black, Spanish etc, they will look to see if the dealership employees are diverse at all levels not having minorities sweeping the floor, washing the cars or in some other subservient capacity.

Don't walk the customer through the service area when there are a lot cars on the lift having major sugery. It'll bring up the question of reliability. Know when to "schedule" a visit to the maintenance area.

etc, etc, etc

[kaisen]

Like anything, the company you work for may determine your success and happiness in your career. Pick the wrong dealership and you will hate car sales. Pick the right one and you may love it.

Not all auto dealers are scum. There is no doubt that some are. I say they just don't get it.

Advertising is stupid expensive. Just getting a new customer in the door can cost hundreds of dollars. See any Sunday paper with the 'screaming' full page dealer ads? They may cost up to $10,000 a throw. And most of them just scream PRICE, not product or relationship. So dealers are spending huge money to bring in a new customer that will buy a car only because of the cheapest price. Not a great business model.

The best dealers don't advertise much, or when they do they will also highlight their product or relationship strengths, not just price or promotion. They see their best advertising as a happy customer. Some literally see handling customer issues as advertising expense. If you spend $10,000 on an ad, or make 10 customers happy with a $1000 policy adjustment to repair a car that wasn't covered by warranty, which has more long term impact? Happy customers keep returning, lowering costs, and increasing sales volume. A great business model.They have learned that you can skin a sheep only once, but you can shear it over and over.

So as a salesperson, you would want to find that dealer.

Turnover there wouldn't be as high - salespeople want to stay because they have a large investment and advantage in those returning customers. The industry average closing ratio for new customers is 15-19%. For repeat customers it is 45-50% because they already know, like, and trust you. Talk to fewer customers, with less headache, and sell more cars.

Other industry figures:

The average car salesperson makes ~ $42,000 per year
The average car salesperson sells ~ 110 units per year
The average car dealer 'makes' ~ $1800 per unit
The average car dealer pays out ~ 20% as commissions

Selling 10 cars at most dealerships will pay you about $3500
Selling 15 cars at most dealerships will pay you about $5500
Selling 20 cars at most dealerships will pay you about $9500

High-end dealers may make double the profit per car (cars are more $, same expressed as %, usually between 8-10%) but then sell half as many units.

As it was said, the top 20% make 80% of the money. I know a few car salespeople that make $200K+ but for every one of them there are 100 that make less than $60K.

There are two reasons for high turnover in the car business:
1) Customers can be real jerks. If you are thin skinned, having 4 of 5 customers NOT buy a car can make you feel worthless. Most people who come through the door think you are scum and treat you as such.

2) Retail sales hours. Saturdays are mandatory. Most dealers have hours until 9PM. Even though you may be scheduled 45 hours, just like any job, the shifts aren't 'normal' and can put quite a strain on family life. Especially if your spouse works 9-5.

Sales isn't for everyone and it isn't easy. It is a skill, perhaps an art form, that is honed over many years. They don't teach it in college, but maybe they should. The most lucrative careers are in sales.

High end car sales is no different than average car sales, but higher highs and lower lows. You may sell only 5-8 units per month, each at $800-1000 commission. A couple unit swing can make you a hero or zero. Bummer when you only sell 3, awesome when you sell 10. The market can be quite fickle on higher end cars. When you're hot....etc.

Used inventory can swing quickly. Fresh inventory may have huge margin, aging inventory can kill you. Selling that used 03 SL600 for $70,000 only to make a $300 'mini' sucks. If the dealer bought it for $72,000 four months ago, that's what happens.

E