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Stories from the Sales Frontlines

47412 messages,  Last post on Nov 11, 2009 at 7:45 PM

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What is this discussion about? Car Buying


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#28627 of 47412
Re: Do salespeople make money on below invoice deals? [jescue] by joel0622
May 09, 2008 (11:28 am)
Reply

Replying to: jescue (May 09, 2008 10:25 am)

We pay $100 flats on mini's, $150 on Xplan, and $250 on A-plan deals.
#28628 of 47412
Re: Do salespeople make money on below invoice deals? [jipster] by verdugo
May 09, 2008 (11:51 am)
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Replying to: jipster (May 09, 2008 10:18 am)

Jipster makes a good point. They might have a mini, but they will club the guy after you like a baby seal.
 
PS I know it's wrong to club a baby seal, but each time you guys use that phrase, it just cracks me up.
#28629 of 47412
Re: Do salespeople make money on below invoice deals? [joel0622] by british_rover
May 09, 2008 (12:03 pm)
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Replying to: joel0622 (May 09, 2008 11:28 am)

See that is smart we have been arguing that Xplan and Aplan deals should have a higher flat paid but no one will listen.
#28630 of 47412
Re: Do salespeople make money on below invoice deals? [obyone] by oregonboy
May 09, 2008 (12:45 pm)
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Replying to: obyone (May 09, 2008 10:02 am)

"A sale at or below invoice would contribute to the sales persons monthly bonus quota and increase his tax liability. A couple of Benjamin Franklins passed to him as you leave should more than compensate him for his time. That is assuming you don't send him a 1099 at years end."
 
As far as I can tell, it would only increase his tax liability to the extent that it increased his income. How is that a bad thing?
 
Your comment regarding the "Benjamins" and 1099s makes me think that you are implying that car sales persons would engage in tax fraud. Are we contributing to the negative stereotyping that the pros here complain so bitterly about?
 
james
#28631 of 47412
Re: Do salespeople make money on below invoice deals? [craigl] by oldfarmer50
May 09, 2008 (1:01 pm)
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Replying to: craigl (May 09, 2008 7:36 am)

"...Does he typically make any money on a deal like this?..."
 
Didn't you know? Nobody makes any money on car deals today. Didn't you ever have a salesperson tell you "and at that price I'm not making a penny on the deal"?
He's telling the truth. You see, car dealerships are kind of like charity organizations these days. They are happy to lose money all day long just to make your life better.
 
Nothing gives a car dealer more pleasure than to see you leave his lot in a car that he had to chip in a few hundred out of his own pocket for. It's sort of like missionary work, he gets his reward in heaven...I think it's a four pounder.
 
So don't bother to slip a salesman any money, he'll just give it away to make the next customer happy.
#28632 of 47412
Re: Do salespeople make money on below invoice deals? [oldfarmer50] by verdugo
May 09, 2008 (1:08 pm)
Reply

Replying to: oldfarmer50 (May 09, 2008 1:01 pm)

Or just do what oldfarmer does and give them an extra $178
#28633 of 47412
Re: Do salespeople make money on below invoice deals? [oldfarmer50] by british_rover
May 09, 2008 (1:19 pm)
Reply

Replying to: oldfarmer50 (May 09, 2008 1:01 pm)

You jest but the way things are going...
 
Take a wild guess how many customers we have had come in so far this month.
#28634 of 47412
Re: Do salespeople make money on below invoice deals? [oregonboy] by joel0622
May 09, 2008 (1:53 pm)
Reply

Replying to: oregonboy (May 09, 2008 12:45 pm)

Its under $600 so we don't need a 1099.
#28635 of 47412
Re: Do salespeople make money on below invoice deals? [verdugo] by mackabee
May 09, 2008 (3:27 pm)
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Replying to: verdugo (May 09, 2008 11:51 am)

As most people know there is no money to be made selling new cars. Competition is fierce and customers are just looking for the lowest price without regard to customer service.
I just got burned bad on a survey from a customer I sold two months ago. I met him and his friend a month before he came in to buy a car for his sister. I was very upfront with him when he asked me what he could buy a Yaris for. I told him that the markup was so low that it didn't matter to me if he paid sticker or invoice for it. I would still get a WHOPPING $100.00 bucks on the sale.
So to make a long story longer, he shows up one day with his sister. Really nice lady and at that time I also thought he was a really nice guy. Business owner, driving a Lexus LS, money coming out of his butt, etc...etc..
 
He gives me the stock number for a 4 door 5spd Yaris that retails for about $14k and change. His sister and I take it for a test drive and she is just thrilled that she is getting the car. Her credit is not that great due to a divorce so brother is co-signing for her.
 
We get back and ready to wrap it up. I go to the sales desk and tell the sales manager that I'm selling the car at invoice and he nods his head so we can start the day with the first deal on the board.
 
Mop & Glo girl comes over, gives her spiel and they end up buying the paint sealant and fabric protection. Since it's the first car of the day the detail department is not busy so they go ahead and do the paint treatment.
 
When I get back to the showroom, the brother is pissed and tells me he is not paying the rate they quoted him in the business office. "I have excellent credit. I don't know how my payment jumped from $200.00 a month to $310.00 a month. I'm ready to undo the deal.!" he exclaims. "Hold on, I'll go see what's up."
 
I go to the business office and Jenny is sitting there and I ask her what happened. "I was going over the menu with him and showed him what his payments would be with a warranty, gap, etc. and he went ballistic on me." she replies. At that moment Mr. Rickles (not his real name) walks into the room and we get back to business. I explain to him that what she did is part of her job and if they don't want any of it to just say no. He sits down and I go back to the showroom.
 
About 45 minutes later they come out of the business office and the car is ready to go. I get their license plates and Jenny comes over and tells me they didn't want the paint sealant and fabric protection after all and he beat her up on the rate.
 
We walk out to the car and and it's nice and shiny with a full tank of gas and the interior is still moist from the chemical that's used to protect the fabric.
 
I remind them of the survey and he tells me not to worry that I did an excellent job. His sister also smiles and tells me the same thing.
 
The next day I do my follow up call to see if any questions came up and if they are happy with the car.
 
Mr. Rickles answers the phone and when I identify myself he blows my hair back (whatever was left of it). "What's wrong Mr. Rickles? Did I do something to offend you?" I ask in a quiet tone. "I'm disappointed at you. I thought you would go into the finance office and fight for me!" "Excuse me?" I responded. "I thought everything was fine after I went in. You guys seemed really happy yesterday." I continued. "I'm never buying a car in Tidewater anymore. All the dealers here are a bunch of crooks!" he tells me. "I'm sorry but you should have not taken the car if you weren't completely satisfied with the transaction. You may speak to our General Manager Mr. Fujimata (not his real name either)" I tell him.
"I just might do that." and he hangs up the phone.
 
I let my boss know and he tells me he'll be waiting for his call and also have the customer relations manager call him.
 
So, I don't hear anything else until today when I come in. The GSM (general sales manager who worked the deal with me) "Hey, your customer on the Yaris from a couple of months ago toasted us on the survey. Big 0" he tells me. "Really? It sure took a long time for the survey to get in. Oh well, I did my best and that's what I get. Go figure"
 
   The End !! (Wow that's a new milestone for me! Complete story in one sitting)
               
#28636 of 47412
Re: Do salespeople make money on below invoice deals? [joel0622] by obyone
May 09, 2008 (3:35 pm)
Reply

Replying to: joel0622 (May 09, 2008 1:53 pm)

In Vegas it's $1200.

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