| Author | Message | ||
| Rob Schermerhorn (Rexrcr)
Member Username: Rexrcr Post Number: 570 Registered: 11-2002 |
I attended an auto sales training three-day course to test the waters to see if I'd like the gig. Every piece of advice you guys have shared was also stated over and over in this training class, too. As an exercise, I had to go to a car store and see what the experience was like, see if I was greeted properly, if I was qualified properly, if the salesperson listened, if (s)he chose a car to demonstrate, if (s)he wrote my name down, went on the test drive with me in order to trial close and uncover objections, offer to write up the order, etc. It was an eye opener. The guy was nice, but was low enthusiasm, did not write my name down, didn't get my phone number, didn't go on the test drive. The statistic I was told was 80% of people who walk into a store will buy within two weeks, but typical closing rate for a salesperson is 27% on a fresh up. Here's the compensation plan at one multi-store (BMW, Ford, Kia, Lincoln, Mitsubishi, Mercury): 27% of gross profit on new 30% GP on used Volume bonus on 12 or more per month $250 draw on commission per week Factory spins of $50 - $1000 depending on car Typical CIF (cash in fist) for "first Saturday sale", etc. Demo allowance of $300 per month Estimated first year income of $40,000 Build up customer contact database to 600 within three years will yield the opportunity to make 10 prospecting calls per day, with the goal of after three years you will be mostly referrals and repeat customers. Close rate for repeat/referral is 67% on average. There's a Toyota salesman in my town making $200,000+ per year. | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 72 Registered: 1-2003 |
Bump for comp plan | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 383 Registered: 11-2002 |
TWA, This exercise is not to uncover dealers and salespeople making hordes of money. I do have a realization that owning a car dealership is profitable but far from insane money. I'm happy with my business ventures and after seeing how this particular dealership makes money, I'm even happier with my returns. I thought it would be a fun and interesting thing to do. I do find the business to be very interesting. There are margins all over the place in a dealership and that is fair and understandable. Nobody works for free. Cheers | ||
| Ben Cannon (Artherd)
Member Username: Artherd Post Number: 308 Registered: 6-2002 |
Good luck! Keep in mind something that I find almost all car dealers get jaded to and forget in a hurry. This is a BIG decision for most people, they are deciding what to do with a great deal of their income and eventual wealth. I find the pushy "so, come on, let's get you this shiney yellow one even though you told me 'red'!" to be demeaning and disrespectful, but subtly so. If you're able to act (and be!) truely intrested in what the buyer actually wants, and go the extra mile to get it, you may find customers falling in love with you  Best! Ben. | ||
| Rob Lay (Rob328gts)
Board Administrator Username: Rob328gts Post Number: 4785 Registered: 12-2000 |
I'm curious on your comp deal? | ||
| TWA (Exoticars)
Junior Member Username: Exoticars Post Number: 100 Registered: 8-2001 |
I am General Sales Manager of a dealership. #6 in total sales out of 562 in the U.S. If you are serious at all about what you are doing and need some 'inside' advice, let me know and I'd be glad to help. There really isn't much of a secret though as to how we make money. Everything is so open and disclosed now. People still want to believe that there is even more that we get but we don't, so don't be too disappointed that you don't find any hidden piles of money. Just treat the customers fairly and make a tiny profit and people will respect that. Don't be afraid to tell people that you expect to make a profit. It's not a bad word. If you tell them that you are making nothing (even when you are), they won't believe you anwyay...... good luck. | ||
| Ralph Koslin (Ralfabco)
Junior Member Username: Ralfabco Post Number: 120 Registered: 3-2002 |
Taek: 1. Lambo is not a dirty word. You are a Lambo Lover. 2. I "assume" selling new cars is very difficult. You are constantly getting squeezed from both sides. Sales Mgr with print outs and a hatchet. Stupid customers who do not have a clue etc... Sales quotas must be made. Everyone is lying. Imagine all the work for a deal: trade ins, test drives, going over inventory, going back and forth over the price, financing, long hours, competition with fellow salesmen, and the deal falls apart in the very end ! Frustrating ? 3. Corolla is a great car. I love my 5-speed manual econobox (everyday beater) "no-wing" racer. "Oh what a feeling." I am always looking for those wanna-be racer econoboxes to shame, who are stuck with helpless automatics. Wanna race for pinks ? Ralph | ||
| Jere Dunham (Questioner)
Member Username: Questioner Post Number: 567 Registered: 1-2003 |
THK, Many years. Sales, Used car mgr, Sales Mgr. GSM, GM. I can tell you I spent time with Pontiac, Datsun (Nissan) early on (1981-1983). Went to BMW in 1984 and spent 17 years, so I do have some high-line experience. Shucks, at one time I actually won the competition for "Most Knowledgable BMW Specialist in North America." Won my wife and I a 10 day Caribbean Cruise. If I can share anything that you think might be helpful, let me know. Take what works for you and throw the rest away. Have fun, be sincere, be frankly honest and listen, listen, listen. You will make more customers and friends than you can imagine that way. Do not over-promise only to have to back off later. Under-promise and over-deliver. This will keep your clientel fiercely loyal to you. So few "salesmen" take the time to do this. They want to take the shortcuts and "get the sale." Do not fall into that trap. Take the time your customer requires. Remember, you are there to serve him. He is bringing you money and asking you to help him make a wise decision on how to spend it. If you listen and ask the right questions, he will let you know exactly what he wants and what he expects it to do for him. If you can gear your presentation around that, get him what he wants and prove to him that it will accomplish the desired results he is looking for, the sale is all but done. It will work every time if he can prove financially able to buy the car. But, that's a different story. | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 379 Registered: 11-2002 |
Jere, were you ever in the business? From your posts it sounds like you sure were. Cheers | ||
| Jere Dunham (Questioner)
Member Username: Questioner Post Number: 566 Registered: 1-2003 |
Oops, sorry for the double post...... Red faced I am....... | ||
| Jere Dunham (Questioner)
Member Username: Questioner Post Number: 565 Registered: 1-2003 |
THK, Just make sure you don't get caught up in the "dope ring." You know, that ring of dopes who stand around just outside the showroom doors, smoking and complaining while waiting for the next "up" to drive on the lot so they can pounce. All their complaining serves no purpose except to "waste" time and poison the attitudes of those who join in. These are the guys who give the real sales professionals a bad name because they are the first ones you encounter when entering the lot. A real sales professional will be inside finishing work or on the phone with follow-ups and prospecting. Now that you have been there a few days, I think you can tell the ones who are the real "pros." Look at the leader board. It will be the 8th of the month and he is the guy who already show 6-8 1/2 cars and is scheduling even more deliveries while the "dope ringmaster" says he is "just lucky, AGAIN." All the time the "ringmaster" is working on getting his 2nd sale of the month. The top producer gets 23 1/2 cars and the "ringmaster" get 8 and tries convincing everyone that the top producer is "skating" everyone and is "just pure lucky." Watch that top producer and see what he is doing. You will see he does it with consistency, day in and day out. Do not try to imitate him, but pick up some of this habits and adapt them to your style. Always be willing to learn and keep your eyes open for things that work. It works.... | ||
| Jere Dunham (Questioner)
Member Username: Questioner Post Number: 564 Registered: 1-2003 |
THK, Just make sure you don't get caught up in the "dope ring." You know, that ring of dopes who stand around just outside the showroom doors, smoking and complaining while waiting for the next "up" to drive on the lot so they can pounce. All their complaining serves no purpose except to "waste" time and poison the attitudes of those who join in. These are the guys who give the real sales professionals a bad name because they are the first ones you encounter when entering the lot. A real sales professional will be inside finishing work or on the phone with follow-ups and prospecting. Now that you have been there a few days, I think you can tell the ones who are the real "pros." Look at the leader board. It will be the 8th of the month and he is the guy who already show 6-8 1/2 cars and is scheduling even more deliveries while the "dope ringmaster" says he is "just lucky, AGAIN." All the time the "ringmaster" is working on getting his 2nd sale of the month. The top producer gets 23 1/2 cars and the "ringmaster" get 8 and tries convincing everyone that the top producer is "skating" everyone and is "just pure lucky." Watch that top producer and see what he is doing. You will see he does it with consistency, day in and day out. Do not try to imitate him, but pick up some of this habits and adapt them to your style. Always be willing to learn and keep your eyes open for things that work. It works.... | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 369 Registered: 11-2002 |
Jere, You were right to say: "I think this will give you a whole new appreciation of what salesmen go through. It is a real eye opening experience to see how the public views you once you are one of "them". " I do have a whole lot more respect for the good car salespeople out there. Although I do have to admit that the crappy ones are pretty sleazy. Cheers | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 368 Registered: 11-2002 |
Jim, Earlier in the post I spilled the beans on one of the other things I do to keep the house and cell phone from being repo'd. I also sell Toyotas ! Cheers | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1183 Registered: 7-2002 |
so you make enough money on the side to buy lambos, 512M's, Cayenne's and play car salesman? again, what am I doing wrong? | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 366 Registered: 11-2002 |
The black Porsche C4 Cabrio in the background of some of the pictures in the Bay Area Breakfast thread is mine. I have a red Corvette because it looks like a Ferrari and I couldn't afford one at the time . I have a Z3 (my wife's college car) and a 1999 Mitsubishi Eclipse GSX (the first car I ever purchased) which is currently undergoing a nut and bolt "restoration". I used to own a Lambo, which is apparently a dirty word in this chatroom . Got rid of it and am currently looking into potentially getting into a 1967 Lamborghini 350GT, which I will be restoring if the acquisition goes through. Wife is surprisingly more supportive about the classic than she was with the new one. The wife is in the market for a family car, so I'm looking into a 456M GT 6spd, as per a thread I've posted earlier (even though she wants a 760Li or an M5). I'm swaying her into the SUVs if anything because hopefully the Maserati Kubang will be out by the time we REALLY need a roomy family car; she also liked the Cayenne Turbo. And I'm potentially in the market for a F512M because it's the first Ferrari I have ever driven and there are some available. And of course, the reason I joined this chat room. I'm always in the search for a 1976-1977 European spec. Fibreglass 308 GTB. If you run into one for sale, give me a holler please! I loooove cars. So...anyone want a Corolla? hehehe | ||
| Mitchell L. Davidson (Jussumfastgi)
Member Username: Jussumfastgi Post Number: 497 Registered: 4-2002 |
I have a 996 w/ Aero kit that I just bought, and a 99 corvette coupe as well. Sounds like we have a lot in common. | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 71 Registered: 1-2003 |
That sounded weird, I mean what types of cars do you personally own? So far a porsche and a corvette, not too shabby... | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 70 Registered: 1-2003 |
What cars do you own? | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 361 Registered: 11-2002 |
Yeah, I almost lost a sale when my customer saw me get into my Porsche to get a pen. He thought salesmen salesmen made a killing for every car they sold. I told the guy it was my dad's car . I'm driving my Corvette to work from now on. Cheers | ||
| Mitchell L. Davidson (Jussumfastgi)
Member Username: Jussumfastgi Post Number: 496 Registered: 4-2002 |
I am the Internet Sales Manager at Toyota Town in Stockton Ca. Lol, It's am interesting business. I just started in it as well. Quite a fun place to work. ;) | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 359 Registered: 11-2002 |
OK. The dealership is Richmond CA, so I guess I'm near Art and his 355. Sold 1.5 cars my first day! The store is a turn based store, meaning that if the salesman can't "connect" with a customer, he must "turn" it to another salesman to see if he can get the customer excited and willing to buy. Anyway, I was given three turns, which I closed. Woohoo!! Their pay plan is pathetic. I feel bad for all of these salespeople here with families to support and this as their only income. I'm trying to figure out how my scanner works and as soon as I do, I'll post their compensation plan. Cheers | ||
| Craig (Beachbum)
Junior Member Username: Beachbum Post Number: 123 Registered: 9-2002 |
i always thought being a ferrari salesman would be cool, how hard is it to get a job selling them? | ||
| L. Wayne Ausbrooks (Lwausbrooks)
Intermediate Member Username: Lwausbrooks Post Number: 1584 Registered: 8-2002 |
THK, which Toyota dealer is it? | ||
| Jere Dunham (Questioner)
Member Username: Questioner Post Number: 557 Registered: 1-2003 |
Okay Taek-Ho, So, how'd it go????? Do feel like a real "car salesman" now? How about the pay plan. Will thye allow you to make any money??? Inquiring minds want to know!!!!!!!!!!1 | ||
| Nebula Class (Nebulaclass)
Member Username: Nebulaclass Post Number: 333 Registered: 11-2002 |
Have fun! I was in the car business for three years. Can be lots of fun, but it can also be a MAJOR PAIN IN THE ASS!!! I will NEVER go back, unless it's to own my own store. But if you make the most of it, you'll have agood time. Good luck! | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 337 Registered: 11-2002 |
I got my salesperson license yesterday! It's a temporary but it's enough to start. I had to go to the police station to get fingerprinted, then fill out some forms in the DMV. Charged me somthing like $55, and off I go! Will start on Saturday. I already requested half a day off for Sunday's Bay Area FChat meeting . They were pretty cool about it. I'll post up the compensation plan when I go to work tomorrow to sign it. It'll be interesting to see how the salespeople get paid. Cheers | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 336 Registered: 11-2002 |
John, I'm doing plastic/dry goods manufacturing, distribution, and retail sales. I'm selling to supermarkets, wholesalers, and I started about four (going on five) wholesalers to hit the retail market (mom and pop shops, and small businesses). Boring stuff, but it pays the bills. Peter, I'm going to try to be the world's only honest car salesman! If you want a Toyota I'll hook you up . I think it'll be interesting to see how the store makes money, and who the real bad guy is . I chose Toyota because it's a brand I feel I can sell without lying through my teeth. They're great cars if that's what you're looking for. As for staying longer than one month, we'll see how interesting it is first! I'll keep you all posted with my experiences. Sure beats playing PS2 all day. Cheers | ||
| Peter Sedlak (Peters)
Member Username: Peters Post Number: 313 Registered: 1-2003 |
THK Be the best you can be in your new job. Take all of the things that you never liked in 'car sales people' and do not be like them. Be the person that customers want to be greeted by. Judge the mood of the customer in the first 30 seconds that you meet them. Be the ultimate camelion. People buy from people they like. If they like you, you just may suprise yourself and stay there for more than a month! | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 69 Registered: 1-2003 |
Taek-ho-kwon, What was your latest business venture? | ||
| Jere Dunham (Questioner)
Member Username: Questioner Post Number: 524 Registered: 1-2003 |
I think this will give you a whole new appreciation of what salesmen go through. It is a real eye opening experience to see how the public views you once you are one of "them". I knew a salesman once who went to the sales manager and asked. "Look, if we are going to negotiate on the price, why don't we just use shoe polish and write the lowest price we will take on the windshield so we don't have to negotiate?" Tried it for a week. Found out that people would look at the reduced price on the window and say, "Yeh, I see the price is reduced, but I know you can do a lot better than that." He lasted about a month before deciding it was not for him. I think everyone should have to work in the public sometime in their life so they could see how it feels. | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 331 Registered: 11-2002 |
Well, after months of sitting on my ass and finally getting my latest company off the ground, I am bored. Two weeks ago I answered an advert for positions available in a Toyota dealership. I dropped off my resume and soon after they called me and offered me a job. Most were wondering why in the world I would want to work there, but the offer is there nonetheless. I figure there have been plenty of comments on people wondering how these dealerships work. Now I figure they are different per marque and their margins are made in a different way, but I'll get some insight on it. I called them earlier this morning and I think I start tomorrow! Wish me luck! I don't see myself staying aboard longer than a month or so. I'll keep you posted . |