Looking at the car industry! I have read a ton but...
Hi All,
my name is Matt, I have been in outside sales my whole life. I have sold a ton of products but never cars, I know I have the personallity to sell cars, I have a great follow up, I send thank you letters, I feel I have what it takes to sell cars, my question to all of you is: I have been on a salary plus commission my whole career, how is this field different for pay. Will I ever starve or do dealers offer salary and commission? Need to know before I give my 110% then end up in the same boat. What are the normal hours? what is the dress attire? and anything else you can tell me.
my name is Matt, I have been in outside sales my whole life. I have sold a ton of products but never cars, I know I have the personallity to sell cars, I have a great follow up, I send thank you letters, I feel I have what it takes to sell cars, my question to all of you is: I have been on a salary plus commission my whole career, how is this field different for pay. Will I ever starve or do dealers offer salary and commission? Need to know before I give my 110% then end up in the same boat. What are the normal hours? what is the dress attire? and anything else you can tell me.
Replies to This Discussion
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Permalink Reply by Rebecca Chernek on
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Hi Matt-
Many dealers have salary options that are available for new sales personnel. Once you have earned your wings gained the know how or acquire the "comfort zone" you can choose to come off salary and take on 100% commission or partial salary with a small commission. You must do your homework. You should contact any potential dealer to determine what pay plans they have available and get it in "writing". I like stores that are one pricing for those who haven't been in the car business but yet have a retail background in sales. Dress is always important! You don't have to wear a $1,000 suit but your clothes should be clean and pressed. If you are well groomed it tells the potential customer you mean business. A sloppy dress is a "sloppy mind". One word of advice, stay away from the nay sayers... don't worry about what everybody else is doing... "worry about what you are doing"! Listen to your trainer and implement 100%. I recommend the following trainers, Joe Verde, Grant Cardone and Dave Anderson. I hope I was able to help you out! Go for it...
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Permalink Reply by Mike Scott on
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If you have a passion for cars, like selling retail, are willing to do what it takes the car business if good. If you need a salary plus commission then the business might not be right for you.The car business is looking for people who have enough confidence in themselfs to work for commission and not needt the salary crutch. You will receive minumum wage or commission which ever is greater. You should make between $350 and $500 per/vehicle sold and you should sell in the beginning between 8 and 12 vehicles per/month. This is the average of new salespeople that follow the proceedures. These averages will increase as your prospecting skills increase.
If you would like to look at the procedures you should follow to be successful visit:
http://www.theprospectinggroup.com/Automotive_Sales.html
Good Luck on your new career.
Mike
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Now that is what I call a great pay-plan Marv! You got it in writing! It's fair and pointed with no confusion! I do think some dealers are missing the boat... we could get a lot more talent in the mix with a good pay plan that started someone off with a salary and commission. I am all for commission that is what I do. When you have your own business you bring it in or you die. I like training wheels and the desire to learn and grow!
Marv Eleazer said:Like many stores we pay a weekly draw against commission and if you're good you'll never worry about falling low enough in sales over the course of a month to be concerned about living at that level.
A salesperson managing as little as 12 units a month here will be paid as follows:
* 30% commission of the gross profit
* $200 unit bonus
* Assuming 8 of the 12 units are New an extra $500
* Company Demo
* $100 bonus for 75% Service Contract penetration
* 5% of the Finance Gross
* $25 per Service Contract sold
* $25 per Finance Contract
* April bonus of $100 per unit
Roughly translated the above equates to $6000 not counting the value of the Demo.
40 hour scheduled work week, business casual attire, no Sundays & 5 paid holidays.
We offer a company matched 401K retirement plan as well.
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Permalink Reply by Mike Stimmel on
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Matt -
Most dealers today offer salary plus commission payplans or at a minimum a "starter payplan" that would allow for a weekly salary and reduced commission % while you learn the business. The hours vary by dealership. This is a retail business and that means retail hours. The potential for evening and weekend hours will vary by market. The best thing to do is interview with a few dealers and find one you feel comfortable with. The turnover rate in the first year is generally very high - so make sure you feel good about the dealership you choose. Talk with other employees - both in sales and service to get a feel for how they like it. Google the dealerships and find out what customers are saying about them. Be informed.
The retail automobile business is a great career move! Find a dealership and go to work.
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Permalink Reply by Grant Cardone on
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Matt,
I entered the auto business straight out of college. I had no money, owed the gov't money for student loans and didn't have many options for work. The auto business can be a great business for the person that commits all the way and brutal to those that don't. This business however offers unlimited opportunities for a person to expand and grow into. It is a forever changing business with tremendous amounts to learn and when you become great you stand out like a shining star because there are so many that accept mediocrity.
The only thing that will keep you from being successful is putting anything ahead of your commitment. Learn how to handle your customers rather than handling the product. Maintain the best attitude of anyone in your city, out-train all those you sell against, and have your goals set way beyond what others even dream of and you will love the auto business and it will love you.
grant cardone
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Permalink Reply by Greg McLarty on
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Wow can I get on that pay plan. I get 25% of profit up to 9 cars, 27% if I hit 10, and 30% if I hit 11. $750 bonus if we get to 14 units. $200 flats on new and $300 on used. Extended Warrant $50, and $5 for anything else purchased from business office. I also get $100 bonus if used car is financed.
My demo is a taxable benefit here in Canada.
Marv Eleazer said:Like many stores we pay a weekly draw against commission and if you're good you'll never worry about falling low enough in sales over the course of a month to be concerned about living at that level.
A salesperson managing as little as 12 units a month here will be paid as follows:
* 30% commission of the gross profit
* $200 unit bonus
* Assuming 8 of the 12 units are New an extra $500
* Company Demo
* $100 bonus for 75% Service Contract penetration
* 5% of the Finance Gross
* $25 per Service Contract sold
* $25 per Finance Contract
* April bonus of $100 per unit
Roughly translated the above equates to $6000 not counting the value of the Demo.
40 hour scheduled work week, business casual attire, no Sundays & 5 paid holidays.
We offer a company matched 401K retirement plan as well.
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Permalink Reply by Joe Clementi on
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Marv
Would love to see this pay-plan spelled out. Can you email me a copy at joe@uhdavis.com?
Marv Eleazer said:Ah, but it gets better for the rising star.
18+ units-35% retroactive
10 New cars-$750
25 Total combined units-$1250 plus the regular commission.
15 Units and the salesperson is excused from the required work schedule. In essence he/she is allowed to come and go freely. Obviously a 15 car guy/gal ain't gonna be goofing off at the pool hall drinking suds without prospecting.
25 Units-the company subsidizes half the salary for a paid assistant to answer at your beckon.
An 18 unit guy is going to make roughly $13K with the present April bonus program and the fast start $$. Obviously this SP is on the move and worthy of the pay he gets. This pro is going to earn the company somewhere North of $50K on 18 deals so it's a great deal for the dealer.
This pay plan has been in writing since 1996.
Now.........................the lead asses that sell 6 get 20% and barely break their draw. Who wants to live there?
Greg McLarty said:Wow can I get on that pay plan. I get 25% of profit up to 9 cars, 27% if I hit 10, and 30% if I hit 11. $750 bonus if we get to 14 units. $200 flats on new and $300 on used. Extended Warrant $50, and $5 for anything else purchased from business office. I also get $100 bonus if used car is financed.
My demo is a taxable benefit here in Canada.
Marv Eleazer said:Like many stores we pay a weekly draw against commission and if you're good you'll never worry about falling low enough in sales over the course of a month to be concerned about living at that level.
A salesperson managing as little as 12 units a month here will be paid as follows:
* 30% commission of the gross profit
* $200 unit bonus
* Assuming 8 of the 12 units are New an extra $500
* Company Demo
* $100 bonus for 75% Service Contract penetration
* 5% of the Finance Gross
* $25 per Service Contract sold
* $25 per Finance Contract
* April bonus of $100 per unit
Roughly translated the above equates to $6000 not counting the value of the Demo.
40 hour scheduled work week, business casual attire, no Sundays & 5 paid holidays.
We offer a company matched 401K retirement plan as well.
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Permalink Reply by Matt Barklage on
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Thanks All,
I think I will look at it, The company I am looking at is very well known and so far the people seem very nice. I am going to talk to someone tomorrow.
Thanks again,
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Permalink Reply by Tobias Sedillos on
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Matt, I have included two short articles that contain the best advice I can give you. You can be successful. Let me know if I can do anything more, personally, to help. Best Wishes, Tobias.
"Copying" Somebody is Not Cheating: It's Smart.
http://docs.google.com/Doc?docid=0Ab4EMd3pF-H6ZGdtd3Zuem1fMTMxYzZkY...
The Power in 3:
http://docs.google.com/Doc?docid=0Ab4EMd3pF-H6ZGdtd3Zuem1fMTY4c2M0a...
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Permalink Reply by Mark Dubis on -
The auto retail industry is one of the most challenging, fun, frustrating businesses in the country. Like some have shared here, it is not for the thin-skinned person, but as many will tell you, it gets in your blood, and I can't see being part of any other industry.
Selling cars is the closest you will come to owning your own business, without owning your own business. You are truly the master of your fate. If you focus, work a daily process and satisfy the needs of your customers you will meet with incredible success. Be sure to do your due diligence when determining where you want to work. When they interview you, be sure to interview them too. Ask them about turnover of sales employees. High turnover means they aren't providing the tools and resources to do the job, or their management staff are second or third tier quality. Becoming an outstanding sales person is difficult when your manager doesn't coach, teach and mentor you in a firm but respectful fashion.
Mark R. Dubis
http://carfolks.com
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Permalink Reply by Steve Richards on
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Matt, are you selling cars now? If so, please share your experience thus far, if not let us know why not? Thank you.
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