Quote:
Originally Posted by Macroni
Read the thread about the Doctor who sold the 190SL for $10,000 to a member. I would love to compare names and opinions thread to thread......
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Another good example of the double standard that says its OK for us to not disclose but the dealer has to...
Quote:
Originally Posted by kaisen
Some dealers have a 'pack' they add to a car and calculate the salesperson's commission on anything above that figure. It's really just a way to advertise higher commission rates.... "We pay 40% commissions!!", but 40% of eveerything over invoice and a $200 pack is probably the same as 20% paid from net less holdback.
As you may gather from my other posts, I believe salespeople should be paid based on performance, not profit. In a one-price non-negotiating dealership, the best way is to pay a flat amount per unit with incentives for volume. That way if it is in the customer's best interest to buy a $5000 car rather than a $30,000 car, there's little incentive to 'sell' them something they don't need..... they just help them 'buy' what fits. Chances are the salesperson put as much effort into selling the cheap car anyway
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Back in the 80's, "pack" (I couldn't think of the phrase earlier) was as much as $500-900 on some units. It was a ripoff since the commissions were still based on gross. Flat commission per unit with volume bonuses has its down-sides. The reps cherry-pick the high volume models and don't even show other units (unless there is a spiff added for selling that unit). Worst of all, I've seen where a store that sells 150 units a month has 20 reps but the bonuses don't kick in until you hit 10 units a month. This encourages lot-lizards working bell to bell 6 or 7 days a week. The average working guy who has a family can't get enough volume to make a decent living. Lastly, high volume/low gross stores usually put a heavy emphasis on F&I and if you aren't the F&I guy (or the house) you are on the losing end yet again.
On the other hand, back when I sold based on gross over pack, I had F&I managers that actually lowered my agreed selling price so they could add the Extended Warranty and keep the monthly payments the same for the customer. The $10 bonus I got for the Warranty didn't quite cover the $900 lost gross.
I got tired of:
- reps stealing return customers (they asked for me but the other rep claims they never said a word)
- reps expecting half the deal because my delivery came in 5 minutes before my shift and all the rep did was walk them to the F&I office waiting room.
- customers burning my day with test drives and then remember they know the owner and 100% of the deal gets flipped to his worthless son who can't sell bread to a starving man.
As far as the hypothetical guy that shook hands and then came back but the car was gone:
The rep probably let a sale walk out the door. 99% of the time, the "Be-back Bus" crashed and burned with no survivors. The rep should have said "no guarantee it will be here" (of course, now he's high pressure). I have
never seen a dealer hold a car with no money down, no paperwork. Sad to say but "Money talks, everything else walks".