Question for new car sales men/women/dealers

Question for new car sales men/women/dealers

Author
Discussion

skeggysteve

Original Poster:

5,724 posts

216 months

Saturday 25th October 2014
quotequote all
Would a dealer or manufacturer delay the delivery of a new car to a customer just to add that new car to next months figures?

okgo

37,849 posts

197 months

Saturday 25th October 2014
quotequote all
Yes


Troubleatmill

10,210 posts

158 months

Saturday 25th October 2014
quotequote all
One would have thought increasing the numbers in the current month:-

a/ Increases cash flow for dealer.
b/ Commission would be higher if posted in this month.



Wilmslowboy

4,188 posts

205 months

Saturday 25th October 2014
quotequote all
I wouldn't see a manufacturer doing it, one car in tens of thousands is going to have little impact on hitting targets etc, similarly a dealer group wouldn't.

Every sales person I know is always desperate to bring sales forward into the current month, often they get paid extra for sales above target (not capped) so the deal at the end of the month should be worth more than delaying it to the start of the following month.

They are many other reason delays by manufactures occur, similar don't underestimate incompetency throughout the supply chain.

PositronicRay

26,952 posts

182 months

Saturday 25th October 2014
quotequote all
Yup manufacturers do it as well as dealers.
A couple of yrs ago one of the VAG brands had hit their target so "hid" cars from dealers (which were in compounds in the UK) to prevent dealers from registering.

Snollygoster

1,538 posts

138 months

Saturday 25th October 2014
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Speaking from experience, I've moved cars into certain months to hit targets.

However, that being said; there could be a genuine reason for a delay so don't necessarily jump to conclusions.

Best thing to do is ask the salesmen the question.

I was very honest to customers and asked could they take it the day earlier/later if it meant earning more money. 99% of the time people didn't care ,and were more than happy to help knowing it would help me.

skeggysteve

Original Poster:

5,724 posts

216 months

Saturday 25th October 2014
quotequote all
Wilmslowboy said:
......don't underestimate incompetency throughout the supply chain.
I do a little bit of work in car delivery logistics so I know full well how the supply chain can screw up!

But I also know that if a manufacturer or dealer wants a car delivered it will happen.

skeggysteve

Original Poster:

5,724 posts

216 months

Saturday 25th October 2014
quotequote all
Snollygoster said:
Interesting stuff
Thanks for your reply.

I think the salesman is being honest, he said that the car was in this in this country over 2 weeks ago and he expected it to be delivered to their small dealership the same week. It's still not there.


LouD86

3,278 posts

152 months

Saturday 25th October 2014
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As a Salesman, in general, you want the car to go as quick as possible. You don't get paid until the vehicle is delivered. So if I got a car into for example this month, I get paid end of october paycheque for it. If its in next month on the 1st, I won't see it until end of November, so a Salesman will 90% of the time, push hard to get the car out ASAP.

However, as this week has proved, I ordered a Fiesta Sportvan last week, on point of order, it was due this coming Tuesday. In for the month, hit my target, woohoo, higher commission grade. Checked Friday, its been delayed till mid November now, so I don't only loose on the van this month, at £70, I lose over £400 in extra banding on commission.

So as a rule of thumb, a Salesman would not delay a car, its normally the supply chain.

vx220

2,689 posts

233 months

Sunday 26th October 2014
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I guess if a monthly target is definitely going to be missed, holding a car or two over means a good start to next month?

I have never worked in car sales, but it has worked inwhite and brown goods!

Those Saturday night big deals got told "we've spent our discount budget, come back tomorrow and we'll be into our new budget."
Which was true, you just took a chance on them coming back

eltax91

9,842 posts

205 months

Sunday 26th October 2014
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vx220 said:
I guess if a monthly target is definitely going to be missed, holding a car or two over means a good start to next month?

I have never worked in car sales, but it has worked inwhite and brown goods!

Those Saturday night big deals got told "we've spent our discount budget, come back tomorrow and we'll be into our new budget."
Which was true, you just took a chance on them coming back
Similar setup across sales. I sell IT kit.

If we are defi itrly going to miss 'threshold' this month/ qtr then we know already we won't be getting any commission. An order today that doesn't take us to threshold is wasted money. Better to save it until next month/ qtr and have a head start.

Similarly, if we have hit, or will hit target for this qtr and a nice little order comes in, we have to balance our accelerter (bigger percentage commission over 100%) against not making threshold next qtr. So, often we end up 'sand bagging' a deal until next qtr as if its a big one it'll give us a fighting chance of getting paid for both qtr's