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salesmen and commission

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Old 03-03-2005, 05:21 AM
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C'mon guys. After that one thread where some guy posted his special "associates pricing" (which miraculously got edited/deleted) ... we all should know they are making more than $100 per car.
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Old 03-03-2005, 06:16 AM
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...and whoever said they sell 10 cars a day must be joking. Right?
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Old 03-03-2005, 06:55 AM
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I know the answer, but before I tell you. I'm new here, obviously. I am a former Toyota-Scion sales consultant who left and now sells Saturns because of my distaste for the Toyota process. Even though that wasn't supposed to carry over to Scion, we all know it does, old habits are hard to break. That said, I'm also a Scion customer. I purchased an xA for my mother about 2 months ago. She loves it and I prefer it to my car too. So, the answer to how much a salesman gets paid... Most dealers have what's called a pack. Salesmen are paid a percentage of the profit over invoice that the car sells at. The pack is first deducted from the selling price (in my case that was $400), and what's left over of the profit is what you are paid on. My scale was at 25%, although the least we would be paid is $100. Needless to say, there is such a small margin in Scions, xA and xB was very rarely over that $100, and if it was, it was way decked out. There's a bit more in the tC (it's a more expensive car), but even still, it was rarely much over $100. I think the best I got on one was about $150, but all told it went for close to $20k. Now for my plug. If you live in California's Central Valley and are considering a Scion, if I still sold em, I'd recommend myself obviously, but I don't. Here's what I recommend, Visalia Toyota-Scion is where I worked. The management there is a bunch of crooks, but there is one salesman in particular. Ask to speak to Nathan Wingert, and make sure to let him know you don't want to talk to a manager. Nate is a great guy, a good friend of mine, and he knows his stuff. He can help you out and hook you up and will take care of you for sure...just avoid the managers. That's my piece, I'm out.
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Old 03-03-2005, 06:58 AM
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Salespeople whine and complain and moan about selling the tC, because, supposedly they only get a small commission on it.

But the cars sell themselves. They should worry about selling by volume, not by how many options the customer doesn't want they can shove into your deal.

Pure Pricing means Pure Pricing. If you want a base tC, call the number in my sig.
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Old 03-03-2005, 07:00 AM
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alls I got to say is do you like your car?

I know I do...

So who cares....
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Old 03-03-2005, 12:34 PM
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Originally Posted by PnAyHoTsPt
C'mon guys. After that one thread where some guy posted his special "associates pricing" (which miraculously got edited/deleted) ... we all should know they are making more than $100 per car.
I had saved that article for awhile, I wanted to post it in this thread, but it almost seemed too good to be true, so I deleted it. I can't find it, either. Strange
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Old 03-03-2005, 02:40 PM
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Default Re: Let's be rational...

Originally Posted by bigmouth2008
So, yes they probably make less on Scion on per car basis, but remember, because the no haggle practice, they also spend less time with you which give them more time to sell more cars. For them to make a decent income, they probably have to make somewhere around 80-120 dollars per hour on their income. Plus basic wage, that's like selling 3-4 Scion a day. I've heard that on a good day, a good sales can sell like 10 cars. So, I don't think they should complain too mcuh.
BWAAA HA HA HA HA!!!!

You have GOT to be kidding me? If the car business was like that, I never would have left it! Whew...let me collect myself here and then I'll tell you a little bit about what the car business is really like...

Ok. First, let me touch where you said "In a good day a salesman can sell 10 cars." YEAH RIGHT!!! The NATIONAL AVERAGE monthly sales is about 12. In a month! The dealership I worked at was super high volume, and the average guy there was selling about 16-20 units a month. There were still a good amount of guys who sold around 12, but they were begging for food across the street outside of McDonalds after their shift because they were so broke.

Ok, let's assume you're a superstar Scion guy and you're moving 20 Scions a month (Verone may be the only peron on EARTH capable of that, because dealers just don't have the inventory. We were making $150 off each Scion we sold, so $150 x 20 = 3000 a month. So that'll be $36k a year before taxes. Not too shabby, but nothing to brag about.

Now, let's talk about what someone would have to do to sell 20 cars in a month. They will either have to have a monster referral network (there are guys out there who do, but maybe 1 guy in every 1000) or they will have to live at the dealership and work bell to bell shifts on pretty much a daily basis.

The dealership I worked at was in California, which means it's open everyday. There were 2 days of the year it was closed...Christmas Day and Thanksgiving. When I say those were the only days the doors were locked, I'm not kidding. Translation: From 7:30am-9:00pm at least 1 shift had to be there 7 days a week. Your average guy at that dealership was working 60-80 hours a week!!!!!!!!!!

Don't get me wrong, it wasn't all bad. Once I got moved to management and worked fleet/internet sales, it was better because price was already taken care of (like with Scions...we were selling everything right around invoice), I had an office which meant no standing out in the hot sun in a suit all damn day, and my volume went up drastically (granted commission went way down. )

Keep this in mind too.....your average salesman is getting paid like 20% of what the car sells for over invoice. Your typical car buyer today is so hell bent about not letting the dealership make any profit that they shop the hell out of every dealer in town until someone sells them the car for like $500 over invoice. What's 20% of $500? Yeah, that's right. $100.

If you wrap the deal up in an hour, it looks like the salesman is making about $100 an hour, which seems great right? Try to remember that there are going to be 60 other hours that salesman works where he may not sell jack. Then it becomes $100 a week. Not so great anymore, huh?

Everyone is so convinced that the other person is lying, when your average sales guy is an honest, hard working individual just trying to make a buck. Sure, there are a lot of shady salesmen out there, but there are also a lot of shady customers too. Most of the shady salesmen are the older guys...the ones who were around in the day when everyone screwed the customer. I know that car salesmen used to be the lowest form of life on the planet, but those guys are becoming fossils. The Internet, fleet buying programs, and informed buyers are putting them out to pasture.

I'm done ranting. I guess the point I'm trying to make is stop assuming you know what's going on when you don't. Get informed before you judge someone based on the profession he has chosen. If a dealer is giving you good service, knows his product, and makes you feel like you've been treated with respect, then respect him enough to allow him to make a living. He's entitled to a profit, just like you.
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Old 03-03-2005, 04:13 PM
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Default Re: Let's be rational...

Originally Posted by DibujoB
I'm done ranting. I guess the point I'm trying to make is stop assuming you know what's going on when you don't. Get informed before you judge someone based on the profession he has chosen. If a dealer is giving you good service, knows his product, and makes you feel like you've been treated with respect, then respect him enough to allow him to make a living. He's entitled to a profit, just like you.
Exactly.

We get $150 flat commission on every Scion sold, plus a percentage of profit made on the accessories. That's all.

Any other questions?
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Old 03-03-2005, 05:17 PM
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Thanks Jon, I forgot to bring that point up....

Someone asked about Invoice on a Scion.....let me explain it this way.

Car salesman normally get 20% of the profit over invoice. If a car sells for $500 over invoice, the salesman gets $100, are you with me so far? good....

The majority of Scion salespeople are making a "flat" commission on Scions, usually something like $150. The reason they do this is because 20% of the profit over invoice on a Scion is less than that!

There is not a lot of money in these cars, at least not for the Salesmen. They are great cars for a great price, and it always makes me laugh to hear people complain about having to pay sticker on them. If they were being sold traditionally the xB would have an $18,000 MSRP.

Ok, now I'm done.
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Old 03-03-2005, 06:00 PM
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Here we get a flat fee for each Scion, and a flat fee for each accessory we sell (more expensive the accessory, the more we get).

And the most i've ever made on a Scion? About $250, and those deals are rare, for the most part, the deals are $125-175. I sell about 15 Scions a month so figure the math. Trust me, guys like me who sell just Scions are not rolling in $$$, I make enough to pay my bills, eat, and buy beer; what else do I need? When I'm older and have kids I'll need to look at ways to make more $$$, but for now, Scions are fine with me. I bought one last june and they figured since I fit the demographic they're going for, I'd be perfect to sell Scions, so they hired me. Its true that they sell themselves, my job is to show you the car, answer any ?'s and do the paperwork. The whole reason Toyota made the Scion process the way it is was to remove the suspicion and aggrevation from the car-buying experiance by ensuring that everyone got the same deal on the cars. After doing that, all people can do is complain about it, citing the same "I got screwed by my dealer" line. I'm not saying that just because you are buying a Scion, you can't ever get screwed; if you let a dealer tack on VIN etch, warranties or other "dealer fees" w/o you knowing about it, sure the saleman is a jacka** for doing it, but you are just as much of one for not noticing it.

The people who keep babbling on about how dishonest car salesmen are are sorta narrow minded, there are dishonest people in every profession on the planet: there are dishonest teachers, doctors, mail carriers, even priests. Making generalizations about salesmen is neither fair nor based on anything but old stories and stereotypes How would all those people feel if they were more or less told every day that they didn't deserve to make money at their job today? Not too good.

Sorry for rambling, but this topic has been beaten to death on this and other sites, my point is just that salesmen are just trying to earn a living like everybody else, we deserve to make money just as much as anyone else. The average salesperson works over 50 hours a week, and if we sell no cars during the week, we make $0; and that's a scary thing to face. Most people get paid whether they work hard or not, a salesman can work his a** off all week but if he doesn't sell a car he gets nothing so give salesmen a little more credit for what they do, (hell, this job gets so stressful, that I've lost almost an inch of my hairline in the 6 months i've been working here )

This was more or less off topic, so If you just want the answer to the thread's ?, just look at the first few lines of my post and disregard the rest
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Old 03-03-2005, 09:55 PM
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Originally Posted by Somnambulated
Salespeople whine and complain and moan about selling the tC, because, supposedly they only get a small commission on it.

But the cars sell themselves. They should worry about selling by volume, not by how many options the customer doesn't want they can shove into your deal.

Pure Pricing means Pure Pricing. If you want a base tC, call the number in my sig.
you can order a base tC by just calling the number???
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Old 03-04-2005, 03:28 AM
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I appreciate all the honest responses to this crazy thread. As you can see it's easy to fall off the subject and get into a heated discussion. Everyone has had a bad experience at some time and will always label that salesman, contractor, doctor, etc. as a bad person. I like the "fossil" salesman and he's right, they will be extinct. The internet is a powerful tool and if you can't accept change you will lose. I never meant any harm to the Scion dealerships. It's an awesome car and I hope they do well for you. I understand the frustrations of a salesman making low wages, but he or she, and their attitude, will either make the sale or lose it and that in turn reflects the dealers standings and profits. I'm outta here!
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Old 03-04-2005, 01:25 PM
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werd up!
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Old 03-04-2005, 03:07 PM
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Originally Posted by budman650
I appreciate all the honest responses to this crazy thread. As you can see it's easy to fall off the subject and get into a heated discussion. Everyone has had a bad experience at some time and will always label that salesman, contractor, doctor, etc. as a bad person. I like the "fossil" salesman and he's right, they will be extinct. The internet is a powerful tool and if you can't accept change you will lose. I never meant any harm to the Scion dealerships. It's an awesome car and I hope they do well for you. I understand the frustrations of a salesman making low wages, but he or she, and their attitude, will either make the sale or lose it and that in turn reflects the dealers standings and profits. I'm outta here!
Very true, the car sales environment is changing for the better. Soon all those "fossil" salesmen will be put out to pasture and the more forward thinking younger generation of sales people can start to get a better reputation.
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Old 03-05-2005, 02:45 AM
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I can't friggin wait. Those damn sharks make me want to puke.

LATER
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Old 03-05-2005, 02:46 AM
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Originally Posted by 240SXtoTC
why sell cars if you have a big old laaaaaasssseeerrrrrrrrr?
"Laaasseerrr"
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Old 03-05-2005, 07:00 AM
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I got a question.

I bought a Scion Xa and gotten a $400 rebate for the car, and later found out that I'm not getting that $400 rebate. So now they want me to go back to resign the papers, and I'm like forget that, I'll just return the car, and find myself a Scion with less options. They charged me for the following: Airbags ($650), mudguards ($105), bumper sticker ($50), rear spoiler ($395), Tint($395).

Now that I feel ripped off, I am going to go back and say, you either eat the cost of the $400, or I return the car. What you think? Can i do this?

Ron
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Old 03-05-2005, 04:22 PM
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The only $400 rebate I know of is the College Grad discount, in which case you need to prove that you have graduated within the last 2 years from an accredited university/college, or that you will graduate in the next six months. Copy of your degree/diploma or a faxed copy of your official transcript will work.

If they didn't receive either, then they have the ability to pull the deal from you.

Also, there is some sort of stipulation in all contracts that final approval of said sales contract is dependent on final credit approval. They can rescind delivery themselves and take your car from you no questions asked if they can't finance you or you don't come up with the money.

They might eat the costs, but chances are, they'll take your car.
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Old 03-05-2005, 05:39 PM
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no they said cause I had a late payment in my history, that i was not elegable for that.

Rather they take the car. Best thing for me since I didn't want all those stinking options.
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Old 03-06-2005, 06:44 AM
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Hell, I dont care if they made tons off my sale... The point is that i agreed to pay what i paid because it was worth it to me. That is the consumer process. The salespeople have to make their money, as well as the dealerships. If I thought they were too steep for what I was getting, then I would get something else.
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