Captain

240SXtoTC
SL Member

Posted: Tue Mar 01, 2005 11:35 am Post subject: salesmen and commission

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Does anyone know approximately how much a salesman is paid in commission for selling a new tC?

Answer: Every dealer varies. I have heard as little as $100 per car to as much as $200 per car plus a % of accesories added, plus base pay (that could equal up to $400 - $500 per car). If a dealer has an open floor; i.e. a salesperson can sell Toyota or Scion then they would just get a flat rate or % of profit per car (and accesories if applicable). These salespeople would more likely to be on the low end of the pay scale because they can sell Toyotas to supplement their income. If a dealer has a closed floor that allows only Scion certified salespeople to sell Scions then they are more likely to pay a larger commision per car. This is in large part because of the small number of sales per Scion dealer (12.5 cars per dealer per month on average) This would severely limit a livable income if they were only paid $100 a car (12.5*100=1250).
This is a good question and for those of you shopping for a Scion you might want to think about the answers I've given. There are always variables to everything but in general you will get better service at a dealer that has a dedicated Scion staff. With a dedicated staff the sales person is more able to concentrate on pleasing the customer with timeliness, caring, and a defect free product because they have more time per customer, better training, and lets face it... more of an incentive ($$) to do things the right way.
Jason Morgan

the_whoster

http://www.edmunds.com/advice/buying...2/article.html


it's called "Confessions of a Car Salesman"

how they work, how they make money, how they rip you off, and how the finance guy pretends to be nice.

JBHS98

Who do you know that can sell 10 cars in a day? A lot of dealerships get excited if they sell 10 cars the whole day for the entire new car dept. The average salesperson sels 8-12 cars per month. $200 per car for 12 cars is only $2400. Some dealers pay a bonus for volume. I get money at 12 units and at 15 units, but it is not a lot. I get 25% of the gross profit (after deducting for any costs). My deal*er gives every customer a theft warranty and a road hazard warranty with every car. The cost is not reflected on the retail pricing. We are charged an extra $200 per car on the invoice. So, on a tC with 700 profit, I am already at $500 before any other costs are factored in. I have never met a single salesperson (cars) that gets an hourly rate. I am 100% commission. No sale = no paycheck. Just because I may have a good day and make $700 doesn't mean I can't go the next week without a single sale. And just because I make $6000 one month, there is no reason I could not make $1200 the next 3 months. I am sorry any of you know a salesperson who is truly dishonest. I have met a few, and they usually are the guys that go from dealer to dealer because they can't work long without getting fired.

JBHS98

There are always variables to everything but in general you will get better service at a dealer that has a dedicated Scion staff. With a dedicated staff the sales person is more able to concentrate on pleasing the customer with timeliness, caring, and a defect free product because they have more time per customer, better training, and lets face it... more of an incentive ($$) to do things the right way.
Jason Morgan[/quote]

I agree and do not agree at the same time. While it is true that some dealer do have a dedicated Scion staff, that does not mean those guys can give the best service. At my dealership, we can sell anything. Don Davis carries most major brands. Not everyone is Scion certified, so not just anyone can sell them. We choose the "cream of the crop" of guys/gals that are open to trying something different and good with customer service. It does not matter if you are the guy that sells 20 cars a month at sticker or 5 cars a month below invoice. The best "traditional" salesperson is not always the best for Scion, so we focus mainly on customer service. If I have a customer looking at an xB, a Nissan Sentra, and a used Element (for example), I can take that customer to look at those. I can visit the other Don Davis stores, not just mine, to find the car my customer wants. I have done this many times, and sometimes will spend an entire day and not sell the car to them. Sometimes it takes weeks and months to sell someone a car. The benefit to my customer is they can take me with them. They do not have to meet a new guy at each lot and start over each time. I already know what they want and need, so it is easier and less stressful to them.

Sorry so long, but I am very passionate about what I do. This is how I bought my family a house so my son could have a backyard and not live in an apt. This is how I could afford to buy my wife a brand new car and get her out of the 10 yr old POS that was falling apart. This is how I can support my family, and I am proud to do what I do, because I can truthfully say that I am honest and ethical. I look in the mirror everyday and like what I see.

Captain

JBHS98 - I truly appreciate a good salesperson and it sounds like you are just that. It also sounds like your dealership has a good system for insuring great service (only allow the best to sell Scion). That's why I specifically said that "there are always variables to everything." You could run into a great salesperson on an open floor. Unfortunately, I have heard many guests that felt like they didnt get that kind of service on an open floor dealer. We have alot of young buyers that werent even offered test drives at other places (this made them feel as if they were being prejudged). I had one guest that another dealer wanted to run his credit and sign a final agreement before they even would let him drive a car! That is exactly the opposite of what Scion stands for and why I felt that a closed floor with dedicated and trained Scion salespeople would offer better service. But again, there are always variables to everything.
On a personal note, congratulations on achieving both financial and ethical success in this business. I have alot of respect for those who have been able to achieve that. It is not an easy accomplishment.

indecisive311

iTrader: (1)

My salesperson has been the most helpful ever. He has called be weekly to update me on my car's status and offered TRD stuff at cost.... When I go to pick up my car I'm going to offer him at least lunch, and a letter of appraisal to his boss.