Ask a car salesman anything...anything at all.
Discussion
4941cc said:
I like Hands up deals said:
I’ll be taking things on a slightly different path, and also giving some insight into an earlier posters question with regards to commission on products.
I’m a salesman at a BMW (Inchcape) franchise and I’m hating the path they’ve gone down. A commission change which isn’t unusual in itself, and as always they try and paint it as a positive thing (but it’s really not). They’ve also gone to split teams I.e New and used.
Basic has gone up to 21k from 15k but we’re no longer paid on GAP, Tyre & Alloy, Smart. The only item we’re paid on is GardX (£25 each no sliding scale).
The most we can earn on a car is £100 (if you hit your target) and we’re not paid on profit, no overage, pack car incentives. Literally makes no difference whether I sell an M4 CS, 760 Li or a stock 1 series in flat white.
Needless to say earnings have cut drastically, add to that the extremely long hours, working every weekend (well every other Sunday) and I’m actually contemplating changing industry.
This is exactly why I left a PLC run Mercedes dealership last year, an AMG GT R sold with no discount paid the same as a A160 SE busted out to Carwow, despite one deal costing us money to do and the other putting 8% of over £150k in the pot. Then 20% got added to the unit target to hit the same overall OTE and that was the final straw. I’m a salesman at a BMW (Inchcape) franchise and I’m hating the path they’ve gone down. A commission change which isn’t unusual in itself, and as always they try and paint it as a positive thing (but it’s really not). They’ve also gone to split teams I.e New and used.
Basic has gone up to 21k from 15k but we’re no longer paid on GAP, Tyre & Alloy, Smart. The only item we’re paid on is GardX (£25 each no sliding scale).
The most we can earn on a car is £100 (if you hit your target) and we’re not paid on profit, no overage, pack car incentives. Literally makes no difference whether I sell an M4 CS, 760 Li or a stock 1 series in flat white.
Needless to say earnings have cut drastically, add to that the extremely long hours, working every weekend (well every other Sunday) and I’m actually contemplating changing industry.
It's the way it's all going though, there's almost no point left being a skilled salesperson interested in retaining profitability, because it doesn't pay you to do that. Just be a process/compliance monkey and be glad for your £50-100/car commission.
Whats the process of registering a new car? How do the number plates get assigned? Is it done on a government website? Is it instant registration?
Do you have to wait for the car to be at the show room or just when in the country?
The reason I ask is I am awaiting delivery of a new vehicle - i was told to get it registered before the end of this month. As today is the last working day what does it entail for the dealer?
Do you have to wait for the car to be at the show room or just when in the country?
The reason I ask is I am awaiting delivery of a new vehicle - i was told to get it registered before the end of this month. As today is the last working day what does it entail for the dealer?
grant8064 said:
Dan W. said:
Sun is shining. Boots are open flags are out, ok we don't have balloons in the showroom but I feel its going to be a good day.
I don't. Easter destroys the month getting stock MOT'd, serviced and prepped. Always puts us a good couple of weeks behind schedule and you can guarantee everyone's cars booked in for collection tomorrow won't be ready by end of business tonight....the sun is shining, i'll give you that!
Paul Dishman said:
4941cc said:
I like Hands up deals said:
I’ll be taking things on a slightly different path, and also giving some insight into an earlier posters question with regards to commission on products.
I’m a salesman at a BMW (Inchcape) franchise and I’m hating the path they’ve gone down. A commission change which isn’t unusual in itself, and as always they try and paint it as a positive thing (but it’s really not). They’ve also gone to split teams I.e New and used.
Basic has gone up to 21k from 15k but we’re no longer paid on GAP, Tyre & Alloy, Smart. The only item we’re paid on is GardX (£25 each no sliding scale).
The most we can earn on a car is £100 (if you hit your target) and we’re not paid on profit, no overage, pack car incentives. Literally makes no difference whether I sell an M4 CS, 760 Li or a stock 1 series in flat white.
Needless to say earnings have cut drastically, add to that the extremely long hours, working every weekend (well every other Sunday) and I’m actually contemplating changing industry.
This is exactly why I left a PLC run Mercedes dealership last year, an AMG GT R sold with no discount paid the same as a A160 SE busted out to Carwow, despite one deal costing us money to do and the other putting 8% of over £150k in the pot. Then 20% got added to the unit target to hit the same overall OTE and that was the final straw. I’m a salesman at a BMW (Inchcape) franchise and I’m hating the path they’ve gone down. A commission change which isn’t unusual in itself, and as always they try and paint it as a positive thing (but it’s really not). They’ve also gone to split teams I.e New and used.
Basic has gone up to 21k from 15k but we’re no longer paid on GAP, Tyre & Alloy, Smart. The only item we’re paid on is GardX (£25 each no sliding scale).
The most we can earn on a car is £100 (if you hit your target) and we’re not paid on profit, no overage, pack car incentives. Literally makes no difference whether I sell an M4 CS, 760 Li or a stock 1 series in flat white.
Needless to say earnings have cut drastically, add to that the extremely long hours, working every weekend (well every other Sunday) and I’m actually contemplating changing industry.
It's the way it's all going though, there's almost no point left being a skilled salesperson interested in retaining profitability, because it doesn't pay you to do that. Just be a process/compliance monkey and be glad for your £50-100/car commission.
Dan W. said:
I would say it would relax a lot more customers if they know salesmen were not paid on high commissions and not trying to screw them over at every turn for a profit not that all of us do that but that's the reputation.
I worked in a business a long time ago, over 20 years, who decided that putting sales staff on a fixed salary without commission was the best for all. Great staff welfare, no incentive to pressure customers etc. It lasted 6 months as the sales staff rested on their laurels safe in the knowledge they were getting paid regardless.Salaries now are higher in the industry than they have ever been (for sales) but overall earnings when inflation is considered have dropped considerably. As a young sales exec with a large group in the 90's we were paid £5,500 basic and expected to sell 300 used cars per year. Doing so earned you £35-40k. The industry average today is for sales staff to sell 150 - 180 units and they probably earn much the same, though with a far higher basic.
papa3 said:
I worked in a business a long time ago, over 20 years, who decided that putting sales staff on a fixed salary without commission was the best for all. Great staff welfare, no incentive to pressure customers etc. It lasted 6 months as the sales staff rested on their laurels safe in the knowledge they were getting paid regardless.
I always believe listening to the people in the industry is wise as they know what they are talking about but can't understand this. I have heard it many times about how sales staff would be doing sweet FA if they were not commission based but to me that just suggests bad management.Nothing wrong with a performance related bonus, but when commission is the primary objective over anything else, it can result in unintended consequences.
Pay is a sensitive subject and I think says a lot about the industry and the people in it.
Edited by Rick101 on Friday 30th March 10:06
Paul Dishman said:
4941cc said:
I like Hands up deals said:
I’ll be taking things on a slightly different path, and also giving some insight into an earlier posters question with regards to commission on products.
I’m a salesman at a BMW (Inchcape) franchise and I’m hating the path they’ve gone down. A commission change which isn’t unusual in itself, and as always they try and paint it as a positive thing (but it’s really not). They’ve also gone to split teams I.e New and used.
Basic has gone up to 21k from 15k but we’re no longer paid on GAP, Tyre & Alloy, Smart. The only item we’re paid on is GardX (£25 each no sliding scale).
The most we can earn on a car is £100 (if you hit your target) and we’re not paid on profit, no overage, pack car incentives. Literally makes no difference whether I sell an M4 CS, 760 Li or a stock 1 series in flat white.
Needless to say earnings have cut drastically, add to that the extremely long hours, working every weekend (well every other Sunday) and I’m actually contemplating changing industry.
This is exactly why I left a PLC run Mercedes dealership last year, an AMG GT R sold with no discount paid the same as a A160 SE busted out to Carwow, despite one deal costing us money to do and the other putting 8% of over £150k in the pot. Then 20% got added to the unit target to hit the same overall OTE and that was the final straw. I’m a salesman at a BMW (Inchcape) franchise and I’m hating the path they’ve gone down. A commission change which isn’t unusual in itself, and as always they try and paint it as a positive thing (but it’s really not). They’ve also gone to split teams I.e New and used.
Basic has gone up to 21k from 15k but we’re no longer paid on GAP, Tyre & Alloy, Smart. The only item we’re paid on is GardX (£25 each no sliding scale).
The most we can earn on a car is £100 (if you hit your target) and we’re not paid on profit, no overage, pack car incentives. Literally makes no difference whether I sell an M4 CS, 760 Li or a stock 1 series in flat white.
Needless to say earnings have cut drastically, add to that the extremely long hours, working every weekend (well every other Sunday) and I’m actually contemplating changing industry.
It's the way it's all going though, there's almost no point left being a skilled salesperson interested in retaining profitability, because it doesn't pay you to do that. Just be a process/compliance monkey and be glad for your £50-100/car commission.
Commissions are meant to incentivise the right behaviour, success should = reward, otherwise why would you go through the hassle of dealing with customers and their petty requests and suffer their negotiation "skills"? (I use the term in its broadest sense) If you're not going to be rewarded. Might as well get a computer says no job with the council.
All you'll get is disinterested salespeople with these kinds of schemes and people on PH wonder why they get ignored when they stand in the middle of the showroom expecting everyone to rush over and engage with their "needs"
Wills2 said:
Paul Dishman said:
4941cc said:
I like Hands up deals said:
I’ll be taking things on a slightly different path, and also giving some insight into an earlier posters question with regards to commission on products.
I’m a salesman at a BMW (Inchcape) franchise and I’m hating the path they’ve gone down. A commission change which isn’t unusual in itself, and as always they try and paint it as a positive thing (but it’s really not). They’ve also gone to split teams I.e New and used.
Basic has gone up to 21k from 15k but we’re no longer paid on GAP, Tyre & Alloy, Smart. The only item we’re paid on is GardX (£25 each no sliding scale).
The most we can earn on a car is £100 (if you hit your target) and we’re not paid on profit, no overage, pack car incentives. Literally makes no difference whether I sell an M4 CS, 760 Li or a stock 1 series in flat white.
Needless to say earnings have cut drastically, add to that the extremely long hours, working every weekend (well every other Sunday) and I’m actually contemplating changing industry.
This is exactly why I left a PLC run Mercedes dealership last year, an AMG GT R sold with no discount paid the same as a A160 SE busted out to Carwow, despite one deal costing us money to do and the other putting 8% of over £150k in the pot. Then 20% got added to the unit target to hit the same overall OTE and that was the final straw. I’m a salesman at a BMW (Inchcape) franchise and I’m hating the path they’ve gone down. A commission change which isn’t unusual in itself, and as always they try and paint it as a positive thing (but it’s really not). They’ve also gone to split teams I.e New and used.
Basic has gone up to 21k from 15k but we’re no longer paid on GAP, Tyre & Alloy, Smart. The only item we’re paid on is GardX (£25 each no sliding scale).
The most we can earn on a car is £100 (if you hit your target) and we’re not paid on profit, no overage, pack car incentives. Literally makes no difference whether I sell an M4 CS, 760 Li or a stock 1 series in flat white.
Needless to say earnings have cut drastically, add to that the extremely long hours, working every weekend (well every other Sunday) and I’m actually contemplating changing industry.
It's the way it's all going though, there's almost no point left being a skilled salesperson interested in retaining profitability, because it doesn't pay you to do that. Just be a process/compliance monkey and be glad for your £50-100/car commission.
Commissions are meant to incentivise the right behaviour, success should = reward, otherwise why would you go through the hassle of dealing with customers and their petty requests and suffer their negotiation "skills"? (I use the term in its broadest sense) If you're not going to be rewarded. Might as well get a computer says no job with the council.
All you'll get is disinterested salespeople with these kinds of schemes and people on PH wonder why they get ignored when they stand in the middle of the showroom expecting everyone to rush over and engage with their "needs"
Sa Calobra said:
Talking of Mustangs and Focus ST's. Do you ever get customers who suddenly stop and have a problem with the first year VED?
First year VED is all wrapped up in the total price so seldom a stumbling block. On the other hand, around about this time last year many people will have been trading in Merc / Jag / Audi / BMW 2.0 Diesels for a new model just the same. Assuming the new car had a list price over £40k then these people will be facing a £500 bill to renew the VED rather than the £30 or even £0 that their previous car had cost.
How many of them don't realise, do you think? Just waiting for the threads to start on here once the renewal letters start to arrive.......
Paul Dishman said:
I can see why the job changing would matter to the individual salesman, but as far as the customer is concerned, does it make any difference?
I think it would be a more positive experience for some customers. Many really don't like to go through the add ons, all they care about is buying the car.I could always see the annoyance I caused when I had to start discussing paint protection and the various insurance products e.g Asset Protection, Smart repair, Tyre & Alloy etc.
We're no longer paid for the majority of those products (only the transaction managers are) so I don't even bother trying to throw the hooks in, or try and build value in the products as there's no incentive in it for me, and most sales executives do what's best for themselves.
Another example is profit, sales people at the franchise I work for are no longer paid on profit, simply a fixed commission per unit, so again I couldn't care less if a car loses money (if the sales manager is willing to write the business), whereas before when we were paid a percentage of profit, I'd have done as much as possible to keep as much in there.
On that note it can also create a more positive experience for customers, there were times before where if I knew a car had more profit in it, it was common to try and "push" the customer into that particular car. Without that incentive sales people literally have no bias, or reason to try and "steer" a sale in a particular direction.
I guess the end result is dealerships will eventually end up having order takers as opposed to sales executives, and maybe just maybe the stereotype of a car salesman will fade away lol.....
The potential flipside of things going down that route however is the equivalent of a typical retail store. What I mean is how often have you walked into a shop on the highstreet and frustratingly not been helped. Or even with regards to cars how frustrating is it when you make an enquiry and a sales executive doesn't get back to you?
If we were all on 35K fixed salaries, many probably wouldn't be that bothered about getting back to a lead etc. We're getting paid the same regardless....
Edited by I like Hands up deals on Sunday 8th April 22:41
If I walk in somewhere and I'm ignored I walk out and take my business elsewhere, so a dealership with staff doing that wouldn't be in business long. The Exeter BMW dealer hasn't sold us a few cars over the years because they wouldn't allow a test drive after I'd got a locum in specially and made an appointment for a test drive.
As far as buying cars is concerned, I've usually got a pretty good idea of what I want, so really all I need is a test drive and then a discussion on the price and trade in. I don't want the extras, but I don't mind someone pointing them out to me so long as they realise that "No thanks" means just that.
How much the salesman is paid is none of my concern
As far as buying cars is concerned, I've usually got a pretty good idea of what I want, so really all I need is a test drive and then a discussion on the price and trade in. I don't want the extras, but I don't mind someone pointing them out to me so long as they realise that "No thanks" means just that.
How much the salesman is paid is none of my concern
grant8064 said:
Do the rest of you in the industry hate school holidays as much as me?
The bored masses are still turning up with their noisy brats in tow jumping in anything open and then running away as soon as you try and say hello.
Pretty much the same, The bored masses are still turning up with their noisy brats in tow jumping in anything open and then running away as soon as you try and say hello.
weekend was bad, test drive jockeys out in full force as well
grant8064 said:
Do the rest of you in the industry hate school holidays as much as me?
The bored masses are still turning up with their noisy brats in tow jumping in anything open and then running away as soon as you try and say hello.
I've often thought dealerships could have a proper play area (like those warehouse type places) and a café. I think that's done in some countries, but I suppose the cost of space in prime locations (not that dealerships really need to be in prime locations) is a barrier in the UK.The bored masses are still turning up with their noisy brats in tow jumping in anything open and then running away as soon as you try and say hello.
Dan W. said:
then again the people buying those sorts of cars arent the type to care about the road fund cost to be honest.
I’m not too sure you are right about that, maybe for someone buying a £70k car, but for those buying at or just above the new RFL threshold I think it will have a large impact. Edited by Dan W. on Saturday 7th April 14:18
Just this morning my wife received her new company car list for her to choose her new car
Not one of the cars is above the threshold. There are some very nice cars but higher tax means higher lease costs
My personal car was just over £42k list it is now three years old
My next car WILL be below the threshold .. it will probably be the same make/model but a lower spec
Why would I want to pay an extra £1600 in tax when I don’t need too ?
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